White spot saga creates potential Budget black hole

The Federal Government has a potential Budget black hole because of a white spot outbreak at the northern Gold Coast in 2016.

The 2024 Budget Papers reveal the government is facing three legal challenges related to the outbreak of the white spot syndrome virus, which devasted the prawn industry on the Logan River in December 2016.

At the time of the outbreak, the government ordered all prawns on the infected farms be destroyed.

Gold Coast Marine Aquaculture Pty Ltd has filed a claim in the Federal Court of Australia, claiming a breach of a duty by the Commonwealth Government that led to loss and damage.

The budget papers also reveal Tweed Bait Pty Ltd and TPF Management Company Pty Ltd, on behalf of commercial fishers, handlers and wholesalers, have lodged a class action in the Supreme Court of Queensland.

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The class action seeks compensation for losses suffered as a result of the 2016 outbreak, the Commonwealth’s biosecurity measures in response to the outbreak, and the impacts on consumer demand resulting from publicity regarding the outbreak. 

A third claim, an open class action, has been filed in the Supreme Court of Queensland against the Commonwealth and is led by M&G Oyster Supplies Pty Ltd. The claim arises out of similar circumstances to the Tweed Bait Pty Ltd and TPF Management Company Pty Ltd matter.

The Government said in the Budget papers that future costs associated with the legal claims would not be quantifiable until the matters were resolved. However, in terms of the size of the overall Budget, the black hole is likely to be insignificant.