The regulatory environment for food

To secure a framework that encourages the development of an internationally competitive food sector:

a) food regulation governance arrangements must be revised urgently, to meet national policy objectives more effectively

b) impediments to the efficient operation of FSANZ need to be investigated and removed in a way consistent with public health and safety

c) food standards regulation should be implemented uniformly and enforced consistently across all levels of government

d) impediments in the regulatory policy framework resulting from overlaps between the Trade Practices Act 1974, food acts and Codex obligations need to be identified and remedied.

Government response

Recommendation 6(a), 6(c) and 6(d)
Agree in principle.

Food regulation arrangements are currently being reviewed through a number of processes, including the review of the Food Regulation Intergovernmental Agreement (FRA) and the review of the Joint Food Standards Treaty between Australia and New Zealand. The findings of FRA review will be presented to the Council of Australian Governments (COAG) for consideration.

In addition, a review of food regulation arrangements has also been raised as part of Rethinking Regulation: Report of the Taskforce on Reducing Regulatory Burdens on Business (the Banks Report), which was released on 7 April 2006. The report contains seven recommendations relating to the potential for reduction in red tape in food regulation. In particular, Recommendation 4.49 states that the Australian Government should commission an independent public review to examine:

• implementing outstanding recommendations from the Blair Review on the consistent application of food laws;
• aligning levels of enforcement (including penalties) across jurisdictions; and
• the role of the Australian Government in the food regulatory system, including whether it could play a greater role in enforcing standards.

In its response to the Banks Report, the Australian Government announced it would fully or partially implement 158 of the 178 recommendations of the report, including support for Recommendation 4.49.

This independent public review will address Corish Report recommendations 6(a), 6(c) and 6(d) by examining food regulation governance arrangements, inconsistent implementation and enforcement of standards and outstanding recommendations from the Blair review, including those relating to the Trade Practices Act 1974. It is intended that the findings of the independent public review could be reported to COAG alongside the findings of the FRA review.

Apart from the independent public review, consistent implementation and enforcement of standards is also being pursued across all levels of government through the Implementation Sub Committee (ISC) of the Food Regulation Standing Committee. The role of ISC is to develop and oversee a consistent approach across jurisdictions to the implementation and enforcement of food regulations and standards. The ISC has identified a number of issues that have potential to affect the consistent implementation of nationally developed and agreed standards including issues relating to inconsistencies between the Food Regulation Intergovernmental Agreement and the Model Food Act.

However, it should be noted that implementation and enforcement of standards is the responsibility of state and territory jurisdictions, except for the enforcement of imported foods standards, for which the Australian Quarantine and Inspection Service is responsible. The Australian Government has limited constitutional power to regulate the domestic food supply.

In developing national food standards, the Food Standards Australia and New Zealand Act 1991 (FSANZ Act) requires Food Standards Australia and New Zealand (FSANZ) to have regard to the promotion of consistency between domestic and international food standards, such as Codex Alimentarius obligations, and the promotion of fair trading in food as specified by the Trade Practices Act 1974.

Recommendation 6(b)
Agree.

The efficient operation of FSANZ has been examined through the review of the FSANZ assessment and approval processes, under the auspices of the Food Regulation Standing Committee (FRSC).

Recommendations relating to administrative improvements are currently being implemented and the Australian Government, through the Department of Health and Ageing, is progressing associated amendments to the FSANZ Act. The FSANZ Act amendments are currently tabled for introduction into the Australian Parliament in the 2006 Spring sitting period.