NOTE: Mark Mathews is CEO of one of the 2 large NZ dietary supplements --
both have actively conspired with officials to undermine attempts by the
overwhelming majority of NZ industry to promote a risk proportionate
regulatory system. If you doubt this, see what officials have termed a 'key
document' at
www.jtaproject.com/Downloads/Key%20Documents/Regulation.pdf
Both companies will be clear winners in the proposed system, although I
must admit that Nutra-life seems not to have been concerned that the Pan
Pharmaceutical regulatory failure cost it of the order of $15 million...
Trans-Tasman Therapeutic Products Agency Bilateral Treaty
10. SUE KEDGLEY (Green) to the Minister of Health: Will the Government
revisit its decision to use the proposed trans-Tasman therapeutic products
agency to regulate dietary supplements and complementary medicines
following the Health Committees recommendation that strengthening domestic
regulation is the most appropriate method of governing complementary
health-care products in New Zealand; if not, why not?
Hon DAMIEN O'CONNOR (Associate Minister of Health), on behalf of the
Minister of Health: No. Work on this has been ongoing since 1996 when the
then Minister of Health, the Hon Jenny Shipley, signed an agreement to work
on this proposal, and also because recent work by the New Zealand Institute
of Economic Research has shown that New Zealand businesses will face lower
compliance costs under strengthened controls administered by the joint
agency than they would under controls administered by a New Zealand only
agency.
Sue Kedgley: Did not Jan Mabey from Citizens for Health Choices hit the
nail on the head when she said that the Minister allowed the health select
committee to proceed with their inquiry knowing full well that she would
ignore totally any recommendations it made. She allowed industries,
consumers, and taxpayers to waste tens of thousands of dollars, and many
thousands of hours. , and will she apologise for undermining democratic
processes, or is it important that proper democratic processes are followed
in Zimbabwe but not in this House?
Mr SPEAKER: There were three supplementary questions there, the Minister
may answer two of them.
Hon DAMIEN O'CONNOR: There is still an extensive process following the
signing that will allow the input from the select committee to select
committees, and all the work that the select committee has done so far will
be considered thoroughly during that process before the joint agency is
finally set up.
Steve Chadwick: Has arsenic been found in products; if so, what approaches
have been recommended?
Hon DAMIEN O'CONNOR: Yes. In January 2003 arsenic was found in a Chinese
remedy on sale in New Zealand. A test showed that it contained 4 percent
arsenic and consumers were warned. The members views are inconsistent
because she says that regulation for products actually consumed is
overkill, while at the same time advocates for an expensive testing and
regulation system for arsenic in timber used in kids playgrounds.
Dr Lynda Scott: Why is the Minister always stating that she is interested
in hearing from people, then takes absolutely no notice of them, and has
proceeded to move to sign a trans-Tasman treaty to regulate therapeutic
products rather than progress New Zealand regulations and have mutual
recognition with Australia?
Hon DAMIEN O'CONNOR: The previous Government, under the control of the Hon
Jenny Shipley, rejected trans-Tasman mutual recognition, and committed to a
joint therapeutic agency. This move is supported by the industry, and I
would like to quote from Mark Matthews, the Chief Executive of Nutralife
Health and Fitness, who said that the joint agency made sense and would
create a more even playing field.
Pita Paraone: How much research has been done into the effectiveness of the
Australian therapeutic goods administration, and how did the Minister of
Health assess the ability of this agency to regulate the New Zealand
market, given the apparent inadequacies that led to the Pan Products recall?
Hon DAMIEN O'CONNOR: We are not handing over control to an Australian
agency. We are setting up a new agency. The Australian Federal Health
Minister and the New Zealand Minister of Health will control that agency
and set it up in a far more robust system than the current Australian
regime.
Heather Roy: Can the Minister deny that the New Zealand Institute of
Economic Research interviewed at least six dietary supplement companies in
Auckland in December 2001 - January 2002, and without exception was given
financial statements showing that all companiescompliance costs would be
in the hundreds of thousands of dollars and that any company with turnover
of less than $5 million would be most unlikely to survive?
Hon DAMIEN O'CONNOR: I think we can accept that no regulations at all would
be far cheaper than having regulations, but the New Zealand Institute of
Economic Research report concluded that the joint agency would be far more
cost-efficient and effective for all producers of these products.
Judy Turner: In establishing a joint agency, does the Minister intend to
give effect to the Health Committees recommendation that regulation of
complementary health-care products should be based on a negative or
blacklist prohibiting unsafe ingredients, or is the Minister content to
completely ignore submittersconcerns and adopt the Australian white list
system wholesale, squashing the innovation that is characterised in New
Zealands growing industry; if not, why not?
Hon DAMIEN O'CONNOR: My understanding is that there will be a list of
approved products and that those people producing new products will be able
to apply for approval, and therefore be able to assure consumers that their
product is safe for sale and consumption. That is the priority for this
Governmentensuring that all products on the market are safe.
Sue Kedgley: In the light of the Ministers recent comments in the media,
could she confirm whether she ever formally wrote to the Health Committee
stating that she wanted the inquiry completed by a certain date; if so,
when?
Hon DAMIEN O'CONNOR: I am not aware of any such document going to the
select committee. However, I am aware that the chair has reminded the
select committee time and time again that it should complete its study.
However, certain members on the select committee insisted on demanding
there be more information provided, which delayed the processing of that
investigation.
Sue Kedgley: Does the Minister agree that, despite her comments here today,
the Health Committee was correct when it said that the trans-Tasman agency
will actually give unprecedented power to an unelected, unaccountable
managing director of the agency, and will involve surrendering control of
the New Zealand complementary health-care industry, and what is the
Ministers response to the question asked by the chairman of Comvita when
he said: Why would we want to give our sovereignty away to Australia to a
system that has been shown to fail? ?
Hon DAMIEN O'CONNOR: We are not giving our sovereignty away to Australia. I
have every faith in our Minister of Health, working with the Australian
Federal Minister, to make sure there is an agency that is fully accountable
to the people of both Australia and New Zealand.
Sue Kedgley: Given that the agency will be headquartered in Canberra, that
the board will be dominated by Australians, and that it will set up under
Australian legislation, how will we have full accountability through our
Parliament?
Hon DAMIEN O'CONNOR: That is wrong. There is no decision about where it
will be based. There will be legislation through both the Australian and
the New Zealand Parliaments. At that time this House and the select
committee will have every opportunity to have their say.
Peter Brown: I raise a point of order, Mr Speaker. During the answers to
those questions the Minister read from a document where he quoted an
industry source. I wonder whether he could table that.
Hon DAMIEN O'CONNOR: I am more than happy to table this press statement
from the New Zealand Herald dated Tuesday, 9 December, where the chief
executive of Nutra-life Health and Fitness, Mr Mark Mathews, said that a
joint agency made sense.
Mr SPEAKER: That is not an official document, but the Minister seeks leave
to table it. Is there any objection? There is not.
Document laid on the Table of the House.
Rt Hon Winston Peters: I seek to table two lots of evidence, the first is
that the agency will comprise two out of 12 New Zealanders on the board,
and, secondly, that Tariana Turia had the M�ori alternative for natural
medicines group taken out of the ambit of this agency, and perhaps she
could explain why.
Mr SPEAKER: The member can seek to table those two documents. Is there any
objection? There is not.
Documents, by leave, laid on the Table of the House.
