18 November 2006

3 minute read

North America

Description

The compensation program is 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 which prevents or controls animal diseases and thereby protects Canadians and the Canadian animal population from diseases that can be transmitted by animals.

Section 55 of the Health of Animals Act allows the Minister of Agriculture and Agri-Food to make regulations setting out maximum compensation amounts allowable for animals ordered destroyed for disease control purposes under section 48 of the Act. Compensation is paid to encourage the early reporting of disease by animal owners and to encourage owner cooperation and participation during control/eradication efforts to prevent or reduce the spread of disease. The actual compensation award is based upon market value of the animal ordered destroyed but shall not exceed the maximum amount specified in the Regulations.

The current Compensation for Destroyed Animals Regulations were published in 2000. The maximum amounts for each animal listed in the schedule of the Regulations have not been substantively amended since they were published in 2000 and, as a result, the list of animals and their classifications are no longer reflective of the Canadian animal industry profile or current animal market values.

This regulatory initiative follows through on a commitment made by the Government of Canada in its Lessons Learned report published in January 2005 as part of the follow-up to the 2004 Avian Influenza (AI) outbreak in British Columbia. When the report was released, the CFIA also announced that a review of the maximum compensation amounts payable contained in the Compensation for Destroyed Animals Regulations would be undertaken. The commitment was reaffirmed in the Government's response to the recommendations of the Standing Committee on Agriculture and Agri-food in its April 21, 2005 report on the management of the AI outbreak.

The review engaged industry and government stakeholders in an open and transparent process. Numerous consultative meetings have taken place, and a revised schedule of maximum amounts and animal categories has been developed. The review was based on a number of guiding principles, including the following: maximum amounts must be set high enough to encourage early reporting and to encourage owner co-operation; maximum amounts must be based on reliable market information or a sound economic model; and the market value of superior genetics and performance should be recognized in the establishment of maximum amounts.

These regulatory amendments are intended to ensure that the animal categories and the maximum amounts are current. This will enable the awarding of appropriate compensation amounts, thereby contributing to the achievement of the goals of the National Animal Health Program. It is important to note that these amendments are an adjustment to the maximum amounts contained in the schedule to the Regulations only. The amount of compensation shall continue to be based upon the market value that the animal would have had at the time of its evaluation if it had not been required to be destroyed. This value shall not exceed any maximum amount established by or under the Regulations.

The amendments accomplish the following: update the categories of animals to better reflect the current animal industry profile; update maximum amounts based upon verifiable market information or sound economic models; allow more animals to be compensated at their full market value (doubles the maximum cap from $4,000 to $8,000); and significantly increases maximum amounts for animals which have a higher genetic value.