Ex-chief vet defends abalone virus response
Dr Hugh Millar gave evidence in an $82 million class action against the state government in Victoria's Supreme Court on Friday.
Fourteen abalone licence holders are suing the government after the virus wiped out about a third of Australia's wild abalone industry, causing the value of their licences to plummet from about $6 million to below $1 million.
Dr Millar has been accused of acting too slowly to control the disease, which originated at the Southern Ocean Mariculture farm near Port Fairy in south-west Victoria.
Despite the farm reporting the outbreak to the Department of Primary Industries in January 2006, it was allowed to keep operating, pumping 40 million litres of virus-tainted water into the Southern Ocean each day.
By March that year, the virus had escaped from the farm, infecting wild abalone off Victoria's south-west coast.
The abalone licence holders are blaming Dr Millar and former Fisheries Victoria executive director, Peter Appleford, for failing to shut down the farm when they knew of the disease and the risk it posed to wild abalone.
But Dr Millar said the recommendations of a parliamentary inquiry into the DPI's handling of an outbreak of ovine Johne's disease a decade earlier, guided his actions.
The inquiry attacked the DPI for destroying sheep and goats on more than 20 farms, which were then unable to replace their animals for two years.
Dr Millar said the affected farmers told him that the so-called cure "was far worse than the disease".
He said the DPI's response to the outbreak also failed to eradicate ovine Johne's disease.
"It had a deep impact on my thinking because the [parliamentary] committee severely criticised the department and the way in which this program was implemented. The things that I particularly remember was that there was insufficient information to justify the program's implementation.
"It was implemented in haste, these are not my words but I'm paraphrasing the committee."
Dr Millar said while the DPI knew from the beginning of the outbreak the risks to wild abalone, the virus was an exotic disease that had never been seen in Australia.
The trial continues on Monday.
Frequently Asked Questions about this Article…
The $82 million class action in Victoria’s Supreme Court is brought by 14 abalone licence holders who say a herpes-like abalone virus wiped out about a third of Australia’s wild abalone industry. They are suing the state government after their licences fell in value from roughly $6 million to below $1 million.
Dr Hugh Millar is a former chief veterinary officer who gave evidence in the trial. Licence holders accuse him of acting too slowly to control the virus; Dr Millar rejects those accusations and says his response was guided by a parliamentary inquiry into how the Department of Primary Industries previously handled a different disease outbreak.
According to the court evidence, the Southern Ocean Mariculture farm near Port Fairy reported the outbreak to the Department of Primary Industries in January 2006 but was allowed to keep operating. The farm continued to discharge about 40 million litres of water a day that the plaintiffs say was virus‑tainted, and by March 2006 the virus had escaped and infected wild abalone off Victoria’s south‑west coast.
The article reports the virus wiped out roughly one‑third of Australia’s wild abalone. As a result, the affected licence holders say the market value of their licences plunged from around $6 million each to under $1 million.
Licence holders blame the Department of Primary Industries and senior fisheries officials — including Dr Millar and former Fisheries Victoria executive director Peter Appleford — for failing to shut down the farm when they knew of the disease and the risk it posed to wild abalone.
Dr Millar says his actions were informed by the lessons of a parliamentary inquiry into the DPI’s handling of ovine Johne’s disease a decade earlier, which had criticised the department for rashly destroying animals and implementing programs without sufficient information. He argues that prior experience shaped a more cautious approach.
In the article, 'exotic' means the herpes‑like abalone virus had never before been seen in Australia. Dr Millar noted that although the DPI knew from the start that wild abalone were at risk, the novelty of the disease complicated the department’s response.
The trial was underway in Victoria’s Supreme Court with Dr Millar giving evidence, and the article says the trial continues on Monday. Everyday investors tracking this case may want to follow court updates and rulings because they could affect licence values, government liability, and the wider aquaculture market mentioned in the proceedings.

