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Simplifying the Menu: Food Regulation in Victoria

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Simplifying the Menu: Food Regulation in Victoria Simplifying the Menu: Food Regulation in Victoria A draft report for further consultation and input April 2007 © State of Victoria 2007 This draft report is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968 (Cwlth), without prior written permission from the Victorian Competition and Efficiency Commission. Cover images reproduced with the permission of the Department of Treasury and Finance. ISBN 1-920-92192-3 Disclaimer The views expressed herein are those of the Victorian Competition and Efficiency Commission and do not purport to represent the position of the Victorian Government. The content of this draft report is provided for information purposes only. Neither the Victorian Competition and Efficiency Commission nor the Victorian Government accepts any liability to any person for the information (or the use of such information) which is provided in this draft report or incorporated into it by reference. The information in this draft report is provided on the basis that all persons having access to this draft report undertake responsibility for assessing the relevance and accuracy of its content. Victorian Competition and Efficiency Commission GPO Box 4379 MELBOURNE VICTORIA 3001 AUSTRALIA Telephone: (03) 9092 5800 Facsimile: (03) 9092 5845 Website: www.vcec.vic.gov.au An appropriate citation for this publication is: Victorian Competition and Efficiency Commission 2007, Simplifying the menu: food regulation in Victoria, draft report, April. About the Victorian Competition and Efficiency Commission The Victorian Competition and Efficiency Commission is the Victorian Government’s principal body advising on business regulation reform and identifying opportunities for improving Victoria’s competitive position. The Commission has three core functions: • reviewing regulatory impact statements and advising on the economic impact of significant new legislation • undertaking inquiries into matters referred to it by the Victorian Government • improving the awareness of, and compliance with, competitive neutrality. For further information on the Victorian Competition and Efficiency Commission, visit our website at: www.vcec.vic.gov.au Opportunity for further comment You are invited to examine this draft report and provide comment on it within the Commission’s public inquiry process. The Commission will be accepting submissions commenting on this report and will be undertaking further consultation before delivering a final report to the Government. Submissions may be sent by mail, fax, audio cassette or email. By mail: Food Inquiry Victorian Competition and Efficiency Commission GPO Box 4379 MELBOURNE VICTORIA 3001 AUSTRALIA By facsimile: (03) 9092 5845 By email: [email protected] The Commission should receive all submissions by close of business Friday 15 June 2007. Terms of reference VCEC Inquiry into Food Regulation in Victoria I, John Brumby MP, Treasurer, pursuant to section 4 of the State Owned Enterprises (State Body — Victorian Competition and Efficiency Commission) Order (“the Order”), hereby direct the Victorian Competition and Efficiency Commission (“the Commission”) to conduct an inquiry into food regulation in Victoria. Background The Victorian food industry is a major contributor to the economy in terms of manufacturing, employment and exports. The food industry is currently subject to a complex and wide-ranging regulatory environment. Food regulation takes many forms, applying to the production, distribution, preparation, handling, labelling and selling of food. Food regulation is both state-based, and subject to a national framework. The Victorian Government is committed to national standards and consistent implementation as documented in the COAG Food Regulation Agreement 2002. However, the continued and sustainable development of this important sector of the Victorian economy is dependent on a regulatory regime that yields efficient outcomes in terms of food safety and quality, whilst minimising the compliance and administrative burden on regulated parties and allowing industry to innovate to meet market demands. The Victorian Government is committed to the development of best practice regulatory regimes. Through its recently-announced Reducing the Regulatory Burden initiative, the Government is seeking to reduce the regulatory burden by cutting red tape for the business and the not-for-profit sectors, and developing new approaches to lower regulatory compliance costs. A comprehensive review of food regulation in Victoria is the first of a series of hotspot reviews to achieve this objective. The Commission’s inquiry into food regulation is expected to investigate ways to simplify the current regulatory environment, clarify roles and expectations for food industry participants at different stages of production, and provide recommendations for best practice enforcement of sound food regulation. iv Scope of the inquiry The Commission is to inquire and report upon: 1. the nature and magnitude of the compliance and administrative burdens of food regulation on business, consumers and not-for-profit sector, and whether the objectives of current food regulation are being met; 2. the impact of the current food regulation environment on the competitiveness and trade performance of Victorian industries (including an examination of the impact of inconsistencies between Victoria and other jurisdictions in implementing and enforcing national food standards, and fair trading in the area of misleading conduct); 3. opportunities for reducing or streamlining regulation (including harmonisation of national and state regulations), and the applicability of alternative regulatory models, to: • minimise compliance and administrative burdens; • improve international competitiveness; and • facilitate investment whilst still meeting the objectives of current regulation; 4. food regulation to support community activities and expectations (e.g. impact of food handling regulations on community fund-raising events, such as school fetes, cake stalls etc), and appropriate risk management strategies; 5. the flexibility of food standards and labelling regulations to adapt to emerging food technologies and products, and accurately reflect relevant health information; and 6. strategies to reduce the burden of regulation on small businesses operating in the food industry. In undertaking this inquiry, the Commission should examine both state-based regulations and the coordinated national food regulatory system. The Commission should take into account any substantive (current or previous) studies undertaken in Victoria and elsewhere — including by the Commonwealth and other States, and international best practice — that may help it provide advice on this reference. v Inquiry process In undertaking this inquiry, the Commission is to have regard to the objectives and operating principles of the Commission, as set out in section 3 of the Order. The Commission must also conduct the inquiry in accordance with section 4 of the Order. The Commission is to consult with key interest groups and affected parties, and may hold public hearings. The Commission should also draw on the knowledge and expertise of relevant Victorian Government departments and agencies. The Commission is to produce a draft report for consultative purposes, and a final report is to be provided to me within twelve months of receipt of this reference. JOHN BRUMBY MP Treasurer 14 September 2006 vi Preface The release of this draft report gives interested participants the opportunity to comment on the Commission’s analysis of the impact of Victorian food regulation on the food industry—a major contributor to the Victorian economy in terms of share of manufacturing, employment and exports—prior to the presentation of the final report to government. In preparing this draft report, the Commission has consulted widely with a range of businesses, government departments, local governments and individuals with an interest in food regulation. Stakeholder input has greatly assisted the Commission in presenting draft recommendations to the Victorian Government on ways to simplify the current regulatory environment and provide best practice enforcement of sound regulations. The Commission invites written submissions on the draft report. These submissions may address any of the issues covered. In light of the submissions received, the Commission will hold public hearings as necessary. At the conclusion of consultation on the draft report, the Commission will produce a final report to be presented to the Victorian Government. The Order in Council establishing the Commission says that the Treasurer should publicly release the final report within six months of receiving it and that the Victorian Government should publicly release a response to the final report within six months of the Treasurer receiving it. The Commission looks forward to receiving feedback on the draft report. The Commissioners have declared to the Victorian Government all personal interests that could have a bearing on current and future work. Moreover, while the Commissioners confirm their belief that they have no personal conflicts of interest in regard to this inquiry, Alice Williams wishes to disclose that she has shares in Coles and Woolworths. Graham Evans AO Robert Kerr Alice Williams Chair Commissioner Commissioner vii Contents Opportunity for further comment iii Terms of reference iv Preface vii Contents ix Abbreviations xiv Glossary xvii Key messages
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