THE ARGUMENT FOR GOVERNMENT INVOLVEMENT IN SHEEP LICE CONTROL

The role of government agencies in livestock health. with particular r eference to sheep lice (Bovicola ovis), is examined. In consideration of this involvement, it is necessary to examine the distribution of be nefits between producers and consumers and between the private product ion units and the wider community. Further, in an export-oriented indu stry like the wool industry, most of the benefits of a disease control program accruing to consumers will be to overseas rather than domesti c consumers. A private cost benefit analysis (CBA) is undertaken to de monstrate the benefits to the individual wool grower of investment in improved fencing and dips to control lice and the major components of a social CBA are discussed. The most important arguments for governmen t involvement in sheep lice control relate to the externalities of a c ontagious disease, the maintenance of overseas markets and workplace h ealth and safety.