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Report of the Food Regulation Review July 1998

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Report of the Food Regulation Review July 1998 Food Regulation Review Committee Report of the Food Regulation Review July 1998 © Commonwealth of Australia 1998 ISBN 0 642 34518 X This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from AusInfo. Requests and inquiries concerning reproduction rights should be directed to the Manager, Legislative Services, AusInfo, GPO Box 84, Canberra ACT 2601. Food Regulation Review PO Box 7186 Canberra MC ACT 2610 Phone: 02 6271 2233 Fax: 02 6271 2278 Email: [email protected] Website: www.health.gov.au/anzfa/frr 2 Foreword Food is one of the necessities of life. It is therefore not surprising that food regulation attracts wide interest in Australia. Indeed many countries throughout the world are currently coming to grips with the complexities of their food regulatory systems. Australia can be justifiably proud of its international reputation for producing safe food. However, we are aware food-borne illnesses are on the increase in a number of countries and there is evidence of resistant strains of bacteria emerging - both are international phenomena. We are also aware of unwarranted costs to business due to inconsistencies and duplication within the regulatory and enforcement framework. At the same time, there is a need for the agrifood industry to become increasingly competitive to be successful exporters to international markets. It is against this background that the governments of Australia agreed to a comprehensive review of food regulation and the Prime Minister announced the Food Regulation Review in March 1997. As independent chair of the Review, I am required to report to governments on ways to reduce the regulatory burden on the food industry and to clarify and simplify the food regulatory system, while providing safer food to all Australians. The review covered all imported, exported and domestic food regulations, from primary production through to processing and retail. Because of its comprehensiveness the Review took great trouble to meet with, and seek information from, all stakeholders. We greatly appreciated the large number of written submissions we received as well as the wide support for the public hearings held throughout Australia. Special efforts were made to ensure the voice of small business was heard as was that of New Zealand - Australia’s partner in the Australia New Zealand Food Authority (ANZFA) and the Australia New Zealand Closer Economic Relations Trade Agreement (CER). I have been assisted in preparing this draft report by an inter governmental/ industry / consumer Review Committee. However, there was disagreement within the Committee on some quite contentious recommendations. I was not attracted to a minimalist approach to reform, advocated by some parties — that is, to leave institutional arrangements as they are and just recommend greater dialogue and better coordination between government agencies. My recommendations embrace legislative, procedural and structural reforms. This package of reforms, if accepted by governments, will result, I believe, in significant and lasting reform of the food regulatory system in a way which will substantially improve both its efficiency and its effectiveness. The end result will be an improvement in consumer safety while reducing the regulatory burden on industry. I would like to thank the Review Committee for their advice and assistance in the Review and also the hard work of the Review Secretariat. Dr WH (Bill) Blair OAM Chair, Food Regulation Review July 1998 Food Regulation Review Committee Independent Chair: Dr Bill Blair OAM Committee Members: Commonwealth Government Ms Winsome McCaughey Australia New Zealand Food Authority (until March 1998) Mr Graham Peachey Australia New Zealand Food Authority (from March 1998) Mr Bob Calder Department of Primary Industries and Energy Dr Bob Biddle Department of Primary Industries and Energy Dr Cathy Mead Department of Health and Family Services Mr Keith Croker Department of Industry Science and Tourism Mr Paul Bek Office of Regulation Review New Zealand Government Mr Geoff Sanderson NZ Ministry of Commerce Mr S Rajasekar NZ Ministry of Agriculture State Government Dr John Scott Queensland Health Dr Rosemary Clarkson Queensland Department of Primary Industries Mr John McMahon NSW Department of Health Mr Stuart King NSW Agriculture Mr Alec Percival Department of Health and Community Care, ACT Dr William Hart Department of Human Services, Victoria Dr Anne Astin Natural Resources and Environment, Victoria Professor Ian Calder SA Health Commission Mr Michael Jackson Health Department, WA Mr Peter Rutherford Agriculture WA Mr Eric Johnson Tasmanian Department of Community and Health Services Mr David Rolfe NT Department of Chief Minister Local Government Mr John Pritchard Australian Local Government Association Mr Adrian O’Loughlin Australian Institute of Environment Health Consumers Ms Mara Bún Australian Consumers’ Association 4 Agrifood Industry Mr Harris Boulton Australian Food Council Ms Julie Austin National Farmers’ Federation (until April 1998) Mr Lyall Howard National Farmers’ Federation (from April 1998) Mr Colin Morley Food Industry Council of Australia Mr Bob Bishop Australian Chamber of Commerce and Industry Review Secretariat (The Review Chair and Committee were supported by a full-time Secretariat) Ms Claire Pontin, Manager Australia New Zealand Food Authority Mr David Roberts Department Primary Industries and Energy Ms Jenny Williams Department of Health and Family Services Mr Gary Malouf Australia New Zealand Food Authority Dr Fay Stenhouse Australia New Zealand Food Authority Mr Tony Johnson Australia New Zealand Food Authority Ms Claire Drinkwater Australia New Zealand Food Authority Contents Foreword 3 Executive summary 10 Review recommendations 18 Objectives and scope 25 Review objectives 25 Background 25 Scope 26 Definitions 26 The Review Committee 26 Conduct of the review 27 Reporting requirements 29 Importance of the agrifood industry in Australia 30 Agriculture 30 Fisheries 30 The food processing industry 31 International trade 31 Retail 31 Food regulation in context 32 Regulatory practices in Australia 34 Current regulatory arrangements and reforms 36 Current regulatory arrangements 36 Reforms to the current regulatory arrangements 38 Benefits and costs of food regulation 47 Benefits of food regulation 47 Costs of compliance with food regulation 51 Costs to small business 52 Costs to medium-to-large business 53 Costs to food exporters 54 Costs to food importers 55 Costs to government 56 6 Summary of major issues identified 58 Lack of uniform legislation 60 Inconsistent application of regulations by enforcement officers 61 Inconsistent interpretation of legislation/regulations by enforcement officers 61 Lack of clarity and consistency in agency roles and responsibilities 61 Overlap and duplication of agency responsibility 62 Lack of coordination between government agencies 62 Inadequate and uncoordinated enforcement effort 63 Multiple audits by industry and governments 63 Inadequate training of auditors and inspectors 64 Lack of training of food handlers 64 Insufficient consumer education on food safety 65 Inefficient food standards setting processes 65 Inappropriate food standards and regulations 65 Insufficient small business consultation in government decision making 66 Inadequate access to information concerning food regulation 66 Summary of review findings 67 An integrated and coordinated food regulatory system 69 An improved national food regulatory system 69 Improving compliance and enforcement 72 Greater consistency in applying effective enforcement 72 Greater consistency in interpreting legislation and regulations 74 Contestable service delivery 75 Improved efficiency of food safety auditing 77 Consistent and timely food recall arrangements 79 Consistency of enforcement between the Trade Practices Act and the Food Acts 80 Consolidation of State and Territory enforcement agencies 82 Better legislation and national decision making 85 Towards a nations food safety regulatory framework 86 Uniform national food laws 94 Single agency to develop national domestic food legislation 96 Rationalisation of Commonwealth decision-making bodies 98 Single Food Ministers Council 100 Improved government administrative processes 101 Integrated monitoring and surveillance 108 Role of monitoring and surveillance 108 Problems with the current system 109 Suggested improvements 110 More effective communications 113 Risk communication 113 Access to the regulatory system 114 Participatory structures and processes 117 Complaints and appeals 117 Information about food products 119 Resourcing arrangements 120 Principles for cost recovery of government goods and services 120 ‘Public interest’ and ‘private benefit’ components of food regulation 121 The ‘free rider’ effect 121 Current charging arrangements 122 Cost recovery at the Commonwealth level 122 State and Territory government arrangements 123 Summary of cost recovery arrangements 124 Future resourcing 124 Review of the ANZFA Act against National Competition Principles 125 Problems with ANZFA Act 126 Objectives of ANZFA Act 128 Objectives of Food Standards 129 Revising Food Standards Objectives 131 Overcoming the problems 135 ANZFA Functions 135 Restraints on competition 138 Overcoming the restraints on competition 139 8 Costs and benefits of self regulation and mandatory food standards 142 Appendixes 149 Appendix A - Terms of reference 150 Appendix
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