Aquaculture New Zealand Commodity Levy Information Booklet

24. How do I vote?You may vote in one of two ways:• e-vote: follow the instructions on your voting paper tomake an on-line vote; OR• postal vote: complete and return your voting paper in theenvelope supplied to the Returning Officer. The detailsof the Returning Officer are provided at the front of thisbooklet.Whichever voting method you use, your vote must bereceived before 12 noon on Thursday 28 February 2013.Votes received after this time will not be counted.25. How will information in the voting papers be treated?The information contained in the voting papers will beused by the Returning Officer to ascertain the level ofsupport for the new levy order. The voting papers will bedestroyed by the Returning Officer immediately upon thelevy order being confirmed by Order in Council, or upon thisreferendum failing to obtain the required level of support.The information in the voting paper will be provided to AQNZfor statistical and research purposes in a form that does notidentify any individuals.26. How will the results be notified?Everyone who receives a ballot paper will be notified of theresults in writing by AQNZ as soon as practicable after theresults are known to AQNZ.27. What if I need more information?Further information is available from AQNZ at the contactaddress below.28. What can I do if I object to the proposed levy?In addition to voting against the levy, any potential levy payeror person potentially affected by the levy can make theirobjection known to AQNZ and/or the Minister for PrimaryIndustries. You can write to:Aquaculture New ZealandLevel 1, Wakatu House,Montgomery SquareNelson 7010Attention Gary HooperorMinister for Primary IndustriesParliament BuildingsWellingtonC. FURTHER INFORMATION ON SETTING LEVY RATESThis section is not part of the Ballot Paper. It explains theconsultation and approval process that AQNZ will be required byits Constitution to follow before it can set the annual levy ratesunder the New Order.OverviewThe consultation and approval process that must be followedbefore any levy rates can be set is explained in more detail below.These requirements are detailed in the AQNZ constitution.1. What are the components that make up the levy?The generic levy payment (first tier) will enable AQNZ to fundits core activities. The species specific levies (second tier levy)will be called upon to fund species specific work. The currentlevy rates set for the 2012 – 2013 year do not have a speciesspecific component.2. Who is accountable for the levy?The total levy (first and second tier) is paid to AQNZ andAQNZ is accountable for its expenditure. However, AQNZ willonly impose a second tier levy at the request of the specificspecies.3. Can the levy be set at variable rates?Variable rates can be set for the different species.4. How is the annual levy rate set?The levy is in two parts: a generic aquaculture component(first tier) and a species specific component (second tier), thesum of which is the total levy. Each year AQNZ managementwill present the AQNZ Board with a draft business planwhich sets out activities for the next financial year. This willbe accompanied by an estimated budget. The activities willbe divided into generic aquaculture activities and, whererelevant, species specific activities.After consultation with shareholders, the AQNZ Board will,if necessary, amend and approve the budget. The budgetwill then be voted on by shareholders in the Annual GeneralMeeting.The generic levy rate for each species is calculated by dividingthe total dollar amount for the species, by an estimate of theannual tonnage, as recommended by the Board.For the species specific levies (second tier levy) the calculationis made by taking the total amount of proposed expenditurefor each species, divided by an estimate of annual tonnage, asrecommended by the AQNZ Board to get the rate.The total levy for each species group is the sum of the genericand specific levies for each species group.The levy payable may vary year to year. AQNZ is a cost basedcentre for the purposes of accounting and AQNZ’s financialneeds may change from year to year depending upon thework programme.In any levy year, the levy must be calculated on the basisof the relative tonnage of the fish harvested and soldindividually for each species.Salmon is usually sold as gilled and gutted. A conversionfactor will apply to reflect the sold state to greenweighttonnage - this is currently 1.15 for gilled and gutted QuinnatSalmon.5. How will the levy rate be set for the first year?The levy rates for the 2012/13 levy year have been set asdetailed in paragraph 15. Consultation on the 2013/14 levyrate will occur and approval sought at the AGM to be held inJuly 2013.6. What consultation must AQNZ undertake before setting thecore levy rate for a year?Each year AQNZ management present the AQNZ Board witha draft business plan which sets out activities for the nextfinancial year. This will be accompanied by an estimatedbudget. The activities will be divided into generic aquacultureactivities and, where relevant, species specific activities.After consultation with shareholders, the AQNZ Board will,if necessary, amend and approve the budget. The budgetwill then be ratified by shareholders at the Annual GeneralMeeting. Once approved at the AGM the levy rate will be setfor the following year.7. How secure are these consultation provisions?Once the commodity Levy order is granted it cannot bealtered during the six year period of the order.8. What other checks and balances apply?AQNZ’s constitution requires auditors to audit theexpenditure of the levy money to ensure that money leviedfor core services and species specific work has been used forthe correct purposes.