This is an update of a previous article. For the background on Equine Influenza (EI) or Horse Flu impact in Australia and immediate insurance response see:
Australian Equine Influenza 24 August 2007
Further updates have also been reported.
As of 12 October 2007 a suspected outbreak of Equine Influenza (EI) in Tasmania has now been cleared. The original outbreak of EI was confirmed 7 weeks ago on 24 August 2007 and the number of infected properties is growing. To date there have been 1,014 infected properties in Qld and 4259 in NSW with more than 32,000 horses infected in NSW.
As the NSW & QLD State Governments adapt colour zoning systems to stem the spread of EI, continuing reports suggest the Melbourne Cup may yet be cancelled or delayed as a result. Meanwhile 150,000 vials of vaccine have been imported and the Australian States argue over their distribution.
A public enquiry into the outbreak and commonwealth quarantine procedures commenced on 3 October headed by former High Court Judge Ian Callinan.
Under the Exotic Diseases Act horse owners are required to report flu-like symptons. The maximum penalty for not reporting an ill horse is $22,000 and a jail sentence.
Financial Impact
Reportedly the industry is worth AUD$8billion a year and is Australia's third largest employer.
Tabcorp has advised $171million in lost turnover and Racing Victoria Limited will post losses of $25million over the Spring Racing Carnival due to lost TAB revenue due to EI. TAB's fixed odds arm will refund more than $300,000 to punters where bets were placed before 24 August on horses that are no longer running due to EI.
Some major events cancelled or postponed as a direct result of EI:
- Sydney’s Rosehill track is in lockdown as of 6 October after 5 horses tested positive.
- Queensland is delaying its Magic Millions sales and race day until late March 2008.
- The 2007 Australian Racehorse of the Year and Hall of Fame function has been postponed.
Insurance Impact
Check your insurance polices. Livestock generally needs to be separately insured but even then most policies do not cover temporary illness or extend to Loss of Profits. Most commercial property polices exclude Livestock.
It has already been reported that since the outbreak of EI, insurers are excluding equine influenza. Was it covered in the first place?
It does not appear that Insurers are reporting any large insurable claims being made.
If you don’t have cover this time consider tailoring your future policies to your business because EI looks like it will be around for some time. Be warned though premiums may be prohibitive.
Government Assistance
In late August Federal Agriculture Minister Peter McGauran announced a $4million hardship package offering grants of up to $1,500 for people in NSW and Qld whose livelihood is dependent on horses. This is an emergency grant. After 7 weeks of interruption, this is a pittance.
National assistance from 9 September 2007 included:
- Equine Workers Hardship Wage Supplement Payment – fortnightly payment to individuals who have lost their primary source of income. Their income must be earned directly from the commercial horse industry and this must have been affected by the equine influenza outbreak, associated quarantine and movement restrictions.
- Equine Influenza Business Assistance Grant - A grant of $5000 is available for businesses which: derive the majority of their income from the commercial horse industry; have occurred additional costs to implement the quarantine measure; and have experienced a significant downturn in income.
See http://www.centrelink.gov.au/ or call the National Equine Influenza Hotline on 1800 234 002.
Update: According to Centrelink's Annual Report for 30 June 2008, as at 30 June 2008 21,500 claims for assistance worth AUD$84.2 million were granted.
- Commercial Horse Assistance Payment (CHAP)
Available to primary carers whose racing, harness or professional equestrian competition horses have been unable to undertake their normal activities, and could otherwise have generated an income, if not for the quarantine restrictions in place.
- Grants for non-government, not-for-profit equestrian organisations
Grants of up to $200,000 are available to equestrian organisations who have, in addition to the provision of voluntary services by their members or affiliates, incurred expenses directly related to the outbreak of equine influenza and the resulting quarantine restrictions.
For more information see http://www.outbreak.gov.au/ or call the National Equine Influenza Hotline on 1800 234 002.
NSW Government Package
Race Club Facility Grant Program (RCFGP)
This is to assist rural and regional race clubs develop their facilities and recover from the equine influenza outbreak. The maximum grant available through the RCFGP is $100,000.
Eligible applicants under this program are incorporated not-for-profit organisations, affiliated with Racing NSW, Harness Racing NSW and Greyhound Racing NSW wishing to develop facilities that will directly assist racing in rural and regional areas.
Housing and Counselling are also provided.
Update: 36 Clubs were assisted by the RCFGP and AUD$2,000,000 expended. See NSW Government website.
QLD Government Package
A $20 million assistance package is available for those suffering as a result of the Equine Influenza outbreak. The package includes:
- $5 million for personal support and hardship
One-off payments of $155 are available for eligible individuals up to a maximum of $725 per family in the form of one-off emergency relief and is subject to an income test.
- $10 million for small business interest subsidy
The $10 million Queensland Commercial Horse Industry Assistance scheme provides payments of up to $5,000 to meet the operating and other essential costs of the business enterprise. Conditions apply.
- $5 million for Horse industry skills retention
A package will be provided to assist the Queensland horse industry transition and recover after the crisis. This will include a major marketing and advertising campaign in support of the 2008 Winter Racing Carnival and will seek to assist in retaining skilled staff during the crisis period.
Update: As at 17 March 2008 the Queensland Commercial Small Business Emergency Assistance Scheme had spent more than AUD$500,000 assisting some 140 small businesses.
Author
Claim Solutions Pty Ltd
Insurance Policy
Country: - Australia
Policy Description: - Livestock, Property
Insurer: - Lloyds syndicates, QBE, CGU noted
External Links
Federal Government
NSW Department of Primary Industries
Queensland Government Department of Primary Industries and Fisheries
Department of Primary Industries and Water, Tasmania
Department of Primary Industries, Victoria
Primary Industries and Resources SA
NT Government Department of Primary Industry, Fisheries and Mines
Department of Agriculture and Food Western Australia
