BH Report of the Kashrut Commission of Inquiry Commissioned by the NSW Jewish Board of Deputies 1. GLOSSARY ............................................................................................................ 4! SUMMARY OF RECOMMENDATIONS .................................................................... 6! INTRODUCTION .................................................................................................... 7! TERMS OF REFERENCE ...................................................................................... 12! WORK OF THE KCI .............................................................................................. 13! Professional and other services ......................................................................... 13! Submissions ..................................................................................................... 13! Interviews ......................................................................................................... 13! Meetings and mediations with the KA ............................................................... 14! Overview of the KA ............................................................................................ 15! Financial review ................................................................................................ 17! FINDINGS ............................................................................................................ 24! Financial condition ........................................................................................... 24! Transparency .................................................................................................... 24! Arm’s Length .................................................................................................... 25! Accountability to Community ............................................................................ 25! Conflicts of Interest ........................................................................................... 26! Certifying Authority .......................................................................................... 28! New KA Constitution ......................................................................................... 28! Continental Kosher Butcher .............................................................................. 32! Third line forcing .............................................................................................. 35! Costs ................................................................................................................ 40! The kosher consuming market .......................................................................... 42! Hadassa ........................................................................................................... 44! AIT ................................................................................................................... 46! RECOMMENDATIONS ......................................................................................... 48! Cost Reduction ................................................................................................. 48! Competition ................................................................................................... 48! Certifying Authority Costs .............................................................................. 48! Shechita ........................................................................................................ 49! Centralised shechita ............................................................................................. 49! Alternative - Streamlining of shechting days ......................................................... 50! Technology .................................................................................................... 50! CCTV .................................................................................................................... 50! Modified atmosphere packaging ............................................................................ 51! Initial Cost Reduction Targets: ....................................................................... 52! STRUCTURAL REFORM ....................................................................................... 54! 2. Set of Fundamental Principles .......................................................................... 54! Principles of Corporate Governance ................................................................... 56! Certifying Authority .......................................................................................... 57! A National Entity ........................................................................................... 57! A Revamped KA ............................................................................................. 59! Members ............................................................................................................... 60! Board of RKA ........................................................................................................ 60! Functions and Powers of the lay board .................................................................. 61! Functions of the rabbinic board ............................................................................ 62! Rabbinic Administrator ......................................................................................... 62! Appeal .................................................................................................................. 63! New Communal Entity in NSW ...................................................................... 64! Lay Board of New Entity ........................................................................................ 65! Rabbinic Board ..................................................................................................... 65! Rabbinic Administrator ......................................................................................... 66! Separation of Powers ............................................................................................. 66! Appeal .................................................................................................................. 67! ISSUES REQUIRING URGENT RESOLUTION ....................................................... 68! CONCLUSION ...................................................................................................... 70! SCHEDULES ....................................................................................................... 71! 3. GLOSSARY ACCC: Australian Competition & Consumer Commission ACCC Letter: Letter dated 17 February 2006 by the ACCC to then solicitors of the KA ACCC Submissions: Submissions in opposition to exclusive dealing notification lodged by NSW Kashrut Authority Inc (N91747): lodged on behalf of Front Page Caterers on about 21 July 2005 ACNC: Australian Charities and Not-for- profits Commission AGM: Annual General Meeting AIT: Caterers with Passion Pty Ltd trading as Amaze In Taste AKO: The Association of Kashrus Organisations Associations Act: Associations Incorporation Act 2009 (NSW) CKB: Continental Kosher Butcher Community: Members of the Jewish community of NSW who are, or may become, kosher or who may currently, or in the future, require to purchase kosher products, or use the services of Kosher Establishments COS Council of Orthodox Synagogues (NSW) COSA Council of Orthodox Synagogues (Australia) Deloitte: Deloitte Touche Tohmatsu Fair Trading: NSW Government Fair Trading FB: Fringe benefits Hadassa: Eilat at Hadassa Kosher Butcher Halacha (halachic): Orthodox Jewish Law 4. Hechsher: Rabbinical product or service certification that food conforms to the requirements of Halacha JBD: NSW Jewish Board of Deputies JCA: JCA NSW (formerly known as Jewish Communal Appeal) JNF: Jewish National Fund Australia KA: NSW Kashrut Authority Inc KCI: Kashrut Commission of Inquiry Kosher Establishments: Kosher caterers, restaurants, kitchens, cafeterias, canteens, dining rooms and other food outlets MAP: Modified atmosphere packaging Mashgiach (mashgichim): Kosher supervision operator(s) M&M: M & M Poultry Pty Ltd New KA Constitution: KA Constitution approved on 24 July 2014 and lodged with Fair Trading on 3 October 2014 NSW: New South Wales ORA: Organisation of the Rabbis of Australasia Passion8: Passion8 Catering Pty Ltd prior to voluntary administration RKA: Revamped KA SBD: Sydney Beth Din Shechita: Ritual slaughter Shochet (shochetim): Ritual slaughterer(s) UIA: United Israel Appeal VIC: Victoria 5. SUMMARY OF RECOMMENDATIONS • The market for kosher products and services in NSW should be as open and competitive as possible so as to facilitate the reduction of costs for consumers. • Urgent structural reforms in relation to the provision of kashrut certification in NSW should be made. • The certifying kashrut authority should be transparent, representative of the Community, and run as a not-for-profit operation, with a recognised set of governance rules consistent with community norms. • Community funds should be made available to seed and/or support such a kashrut authority. • A resolution must be arrived at immediately in relation to: o a strategy and timetable for implementing cost savings; o the provision of a permanent kashrut certification to each of the Kosher Establishments in NSW not currently certified by the KA; and o the permissibility of meat products from inter-state certified providers to licenced