Gall wasp
Gall wasps (cynipidae), or gall flies, are small insects in the order hymenoptera, which also contains ants. They are named for the hard sacs they form when they lay eggs on the roots and branches of some plants, these contain the larvae of the gall wasp, enclosed in little chambers.
The citrus gall wasp (scientific name?), is the bane of farmers and home growers in Australia. Although the larvae do not damage the tree per se, the galls are unsightly and warp the stems and branches. Exactly why these repugnant little creatures feel the need to destroy the darling little lemon tree I have so carefully nursed through the drought is not completely understood, but I really hate them.
References
Gardening Australia television program, ABC network, broadcast 29th September 2007.