A cost-benefit analysis for moving the commonwealth’s pesticides regulator to Barnaby Joyce’s own electorate has found significant risks, which if not managed properly could cost the agriculture sector up to $193m a year.

The $272,000 analysis, which had been kept secret until after the decision was made, found the most significant risk related to the ability of the Australian Pesticides and Veterinary Medicines Authority (APVMA) to relocate, recruit or replace staff within the first two years of the move from Canberra to Armidale. Moving the agency of 189 staff is expected to cost $25.6m.

“Critically, the loss of technical assessment staff (regulatory scientists) has the potential to seriously disrupt the ability of the APVMA to successfully fulfill its purpose and achieve its objectives in the short and medium term,” the report finds.

The analysis by Ernst and Young found the dislocation could cause a delay in the approval of new products and the result could be costly for the industry.

“Based on conservative estimates of a one-year delay in the approval of new products, the potential impact on the agriculture sector for crops alone could be between $64 million and $193 million per annum,” the report finds.

“The risks to the agvet chemical industry associated with moving the APVMA are also significant with a one year delay in the approval of new chemicals potentially impacting industry to the value of between $0.8 million and $2.7 million per annum in terms of lost revenues.”

The analysis was released two days after the finance minister, Mathias Cormann, issued a policy regulation which orders any agencies which regulate agriculture to move outside Canberra to regional areas “not within 150 kilometres by road of Canberra or the capital city of a state”.

It then states: “The policy of the Australian government mentioned in section 4 is applied to the Australian Pesticides and Veterinary Medicines Authority.”

The regulation allowed the Coalition to complete the APVMA move without going through the parliament. Due to the section used by Cormann, the senate cannot disallow the order.

The move has been opposed by the National Farmers Federation. Joyce announced it during the election when he was facing a fierce battle for his New England electorate with the former independent member Tony Windsor.

On Friday Joyce couched the move as part of a broader strategy for decentralisation which has seen the the Grains Research and Development Corporation (RDC) establish four offices outside Canberra at Dubbo, Toowoomba, Adelaide and Perth.

Joyce also moved the Rural Industries RDC to Wagga Wagga in NSW and the Fisheries RDC has moved a regional office to Adelaide. The Coalition is also considering a new office for the south Murray Darling Basin and the expansion of an existing office in Toowoomba.

“One of the key things our nation requires is decentralisation,” Joyce said.

“Our government, the Liberal National Coalition believes in the process of decentralisation where that can be achieved.

“Part of the process is making sure the largesse of government is more equally spread across the nation.”



Joyce said there would be a temporary office opened by March next year and the government was in talks with the University of New England.

It is understood the $272,000 cost benefit analysis – which Joyce refused to release so far – will be made public later on Friday.



Labor’s agriculture spokesman, Joel Fitzgibbon, said the APVMA move was a a blatant pork-barrelling exercise which would undermine the authority’s capacity to ensure that farmers are able to access farm chemical and animal medicines they need.

“This week Barnaby Joyce has justified his 19% backpacker tax by saying the National Farmers’ Federation supports it,” Fitzgibbon said.

“While that may be true, the NFF is vehemently opposed to the APVMA relocation. This clearly demonstrates that Barnaby Joyce will use the NFF when he needs them and ignore them when he doesn’t.

“It is now clear to all those in rural and regional Australia that Barnaby Joyce will always put his own political interest ahead of the interests of our farmers.”



But Joyce said the move would modernise the APVMA, with a “fresh digital strategy” and would provide opportunities for young scientists on the Northern Tablelands, with new University of New England courses being developed to complement the “hub of excellence”. A new regulatory science course will start at the University of New England in 2017.

Armidale was the first centre to get the National Broadband Network under the deal signed in the hung parliament between Julia Gillard and former MP Tony Windsor.