ARCHIVED — Vol. 146, No. 12 — June 6, 2012

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Registration

SOR/2012-109 May 22, 2012

HEALTH OF ANIMALS ACT

Regulations Amending the Compensation for Destroyed Animals Regulations

The Minister of Agriculture and Agri-Food, pursuant to paragraph 55(b) (see footnote a) of the Health of Animals Act (see footnote b), makes the annexed Regulations Amending the Compensation for Destroyed Animals Regulations.

Ottawa, May 18, 2012

GERRY RITZ
Minister of Agriculture and Agri-Food

REGULATIONS AMENDING THE COMPENSATION FOR DESTROYED ANIMALS REGULATIONS

AMENDMENT

1. Item 12 of the schedule to the Compensation for Destroyed Animals Regulations (see footnote 1) is replaced by the following:

Item

Column 1

Animal

Column 2

Family

Column 3

Maximum Amount ($)

12.

Sheep (Ovis aires) Non-registered

Bovidae

825

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

The compensation program, administered by the Canadian Food Inspection Agency (CFIA) under the authority of the Health of Animals Act as part of the National Animal Health Program, helps to control the spread of animal diseases, including those that would have a significant economic impact, by encouraging early reporting. The outcome is better protection for Canadians from diseases that can be transmitted by animals.

Under the Health of Animals Act, the Minister can authorize payment for the market value of animals ordered destroyed in an outbreak situation. In 2007, the maximum amount for non-registered sheep was set at $300. Consultations and research at the time showed that this was a reasonable amount of compensation given the state of the sheep market. However, it has since become apparent that the market value was depressed at that time. Recent data shows significant increases in today’s market prices of hybrid or cross-bred sheep. Therefore, the maximum monetary amount currently specified for non-registered sheep must be adjusted to reflect current market value. Adequate compensation is essential in order to encourage the prompt reporting of disease by producers.

The objective of this regulatory amendment is to establish a maximum sheep compensation rate, for non-registered sheep, that is reflective of today’s market realities in order to continue promoting early reporting of diseases controlled under the Health of Animals Act, and encourage producer cooperation and participation during control/eradication efforts meant to prevent or reduce the spread of disease. This amendment, therefore, will reduce the potential economic impact of a large-scale disease outbreak.

Description and rationale

Section 51 of the Health of Animals Act allows the Minister of Agriculture and Agri-Food to order compensation for the market value of animals ordered destroyed and, under section 55, the Minister may make regulations setting out maximum monetary compensation amounts for animals or things ordered destroyed for disease control purposes under section 48 of the Act. Monetary compensation encourages early reporting of disease and cooperation by producers during control/eradication efforts intended to prevent or reduce the spread of disease. The amount of compensation awarded, although based on market value of the animal or thing ordered destroyed, cannot exceed the maximum amount specified in the Compensation for Destroyed Animals Regulations (CDAR). It should be noted that the compensation paid under the Health of Animals Act represents only a portion of the actual cost of a disease outbreak, which can have a significant impact on not only the sheep industry, but also the economy in terms of lost market access, peripheral business costs and costs for other levels of government.

The current CDAR were published in 2000 (SOR/2000-233). The maximum amounts for each animal listed in the schedule to the Regulations were completely updated in July 2007 (SOR/2007-169) and later amended in November 2007 (SOR/2007-269), allowing for reasonable compensation to be paid to owners of registered and non-registered sheep upon destruction of those animals as ordered. The market value of non-registered sheep has, however, significantly increased since 2007. As a result, there is a need to correspondingly amend the maximum monetary amounts payable for non-registered sheep in the CDAR Schedule.

Early reporting of diseases to CFIA veterinary inspectors, encouraged by compensation reflective of today’s market, is essential for prompt intervention and implementation of corrective actions. Such actions will minimize the spread of the disease and its impact on human and animal health, and subsequently, the economic viability of Canada’s sheep sector.

The actual amount to be paid to a producer in a disease outbreak situation is calculated based on the actual market value of the animals at the time they are ordered destroyed. The regulatory maxima represent the highest payment that the Government would make.

Consultation

To determine an appropriate market value for non-registered sheep, one of Canada’s largest sheep sector federations prepared a thorough economic analysis. The results indicated that a more accurate and appropriate maximum amount of compensation for non-registered sheep would be $825. Consultations were subsequently held with Canada’s major sheep sector associations, and relevant Government of Canada departments, to discuss the contents and methodology used to obtain the proposed revised maximum amount. All concurred with the findings.

Implementation, enforcement and service standards

The authority to prescribe regulations establishing maximum amounts of compensation for animals ordered destroyed is contained in paragraph 55(b) of the Health of Animals Act.

All compensation paid under the CDAR is recommended by a veterinary inspector designated under the Health of Animals Act. A mechanism for appeal of compensation amounts is available, as required, pursuant to the Health of Animals Act.

Contacts

Mr. David Spicer
Director
Canadian Food Inspection Agency
Regulatory, Legislative and Economic Affairs
Telephone: 613-773-5889
Fax: 613-773-5960
Email: David.Spicer@inspection.gc.ca

Dr. Francine Lord
Director
Canadian Food Inspection Agency
Terrestrial Animal Health Division
Telephone: 613-221-4624
Fax: 613-228-6143
Email: Francine.Lord@inspection.gc.ca

Footnote a
S.C. 1997, c. 6, s. 71

Footnote b
S.C. 1990, c. 21

Footnote 1
SOR/2000-233