- PDF Version (2.4M) - Print Friendly - Help

AgVetLink: Number 62, June 2007

NZFSA: questions and answers

The decision to separate MAF and NZFSA has been made and will take effect on 1 July 2007. Below are some questions and answers that we hope will answer your queries concerning the process.

Separation decision

Why has the Government decided to separate NZFSA from MAF?

NZFSA has evolved to become a highly reputable agency with a strong brand. It no longer needs to be attached to MAF to ensure its credibility in international trade. Being a separate department will enable NZFSA to focus more on its core functions.

Why did the Government come to this decision?

The 2006 report acknowledged that the semi-autonomous model held some tensions and complexities in terms of duties of responsibility and functions, but it still recommended that NZFSA remain attached to MAF.

However, in light of other factors such as authorities like NZFSA emerging as the preferred food regulatory model across the world, the Government asked the State Services Commission (SSC) to provide further advice about separating NZFSA. (See April 2007 AgVetLink for details.)

How much will separation cost?

Establishing NZFSA as a Public Service department will require a one-off set up cost of $0.63 million, and a $7.5 million contribution to provide working capital. Additional and ongoing costs for both departments of $2.95 million per annum relate mainly to the establishment of new positions in NZFSA as a result of the separation, and to providing MAF funding for activities no longer required by NZFSA. These costs will be fully funded by the Crown.

MAF relationship

How will the NZFSA/MAF relationship operate?

NZFSA and MAF are developing a 'Shared Services' agreement that will allow NZFSA to continue receiving some core infrastructure services from MAF. This will allow MAF and NZFSA to operate with a common infrastructure. Shared services include IT, contract management, procurement and payroll. NZFSA will be responsible for its own strategic functions such as human resources and financial management.

New department

Will NZFSA be a 'Ministry'?

The organisation will continue to be called 'the New Zealand Food Safety Authority' and will be a department of state. Like the New Zealand Customs Service, NZFSA will be the equivalent of a Ministry.

Will Andrew McKenzie be the 'Director-General'?

Andrew McKenzie has been appointed as the 'Acting Chief Executive', which means that he can make decisions on behalf of the new department. The SSC has indicated that there is likely to be a permanent appointee in place by November/December this year.

Impacts on stakeholders

Will NZFSA’s charges for services to stakeholders increase?

Over the last six months NZFSA has conducted a thorough review of its cost recovery policies and the application of these to the various sectors under the Animal Products Act, the Wine Act and the Food Act. In some cases this will result in a rise in charges after 1 July 2007, but this is not unexpected because it has been a significant period since the charges in several areas were reviewed. Any increases effective 1 July 2007 are unrelated to separation.

The next phase of resourcing NZFSA will look at the impact of separation as well as the parts of the legislation (such as the ACVM Act) that were not reviewed in 2006-07. Any further changes (up or down) to the cost structure of NZFSA will be part of the 2007-08 cost recovery review and will go through the full consultation process with stakeholders for implementation on 1 July 2008.

Further questions?

For more information, go to the NZFSA website (www.nzfsa.govt.nz).