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Domestic Food Review - Policy and Related Implementation Position Paper

3 Background and Context

This Domestic Food Review is only the second such review in 30 years. It has been under way since March 2003, and responds to a number of problems and issues that have arisen with the existing regulatory framework applying to food in New Zealand. This is the tenth Paper published as part of the Review.

There are three main pieces of food-related legislation, the:

• Food Act 1981

• Animal Products Act 1999

• Wine Act 2003.

Under the Food Act 1981, there are Food Hygiene Regulations 1974² (made under the Health Act 1956 and the Food Act 1981), the Food (Safety) Regulations 2002, those parts of the Australia New Zealand Food Standards Code (‘the joint Food Standards Code’) that apply to New Zealand, and New Zealand food standards. These comprise the current regulatory regime for New Zealand food under the Food Act 1981.

The New Zealand domestic food and beverage sector covers any food business (by definition, food producer, processor, handler, seller or importer) that prepares food for sale or reward and, potentially, food funded by government appropriation. The food industry comprises approximately 35,000-37,000 businesses including:

• 22,900 registered retail and food services

• 1,700 registered food manufacturers

• more than 10,000 food businesses currently exempted or partially exempted from registration, such as hospitals, childcare facilities, aged care homes or school tuck shops

• 3,000 businesses currently covered by various risk management programmes under the Food Act 1981 (Food Safety Programmes), the Animal Products Act 1999 (Risk Management Programmes – including what had been product safety programmes under the Dairy Industry Act 1952 – and Regulated Control Schemes) and the Wine Act 2003 (Wine Standards Management Plans are yet to be implemented). To a large extent, the proposed Food Act would adopt the best features of these and apply them to the food sector more generally. The proposed Food Act covers food that is also animal produce or wine.

There is an unknown number (but estimated to be in excess of 80,000) occasional food operations each year (currently exempted or partially exempted from registration) such as barbecue fundraisers, cake stalls and galas.

A Glossary of Terms is in Appendix 1.

3.1 Problem definition: why the Domestic Food Review was needed

As the country’s principal food regulator, NZFSA is required, among other things, to administer national food-related law and issues relating to the safety and suitability of food. NZFSA also has to deliver and address the following:

• reducing the incidence of foodborne illness in New Zealand

• providing a regime that ensures safe and suitable food for New Zealand

• inconsistencies, interface issues, duplications and gaps throughout the food regulatory system in New Zealand.

In addressing the problems facing New Zealand, the Government has decided that a number of Policy Principles will be applied, as outlined in the Domestic Food Review Position Paper, February 2006 (page 8) and repeated in section 3.3 of this paper. In addition, the Government’s decisions on its future involvement in food regulation are based on a risk-management framework and the Government’s Code of Good Regulatory Practice, which requires laws to meet standards of efficiency, effectiveness, transparency, clarity and equity.

3.2 Scope of the Review

The Domestic Food Review covers government involvement in all aspects of the safety and suitability of food produced, processed, manufactured, transported, handled, imported and traded in New Zealand. The proposed Food Act includes all food provided in New Zealand for sale or reward (eg, a workplace canteen funded by the employer) and, potentially, food funded by government appropriation. NZFSA has conducted a separate review of imported food, and the relevant legislative outcomes of the Imported Food Review are to be implemented through the proposed Food Act.

The Domestic Food Review also provides for implementation of new food regulations to replace the Food Hygiene Regulations 1974 and the Food (Safety) Regulations 2002. The Joint Food Standards Code and New Zealand food standards will remain in effect.

All food businesses covered by the Domestic Food Review will be required to have a registered Food Control Plan and/or be covered by a National Programme, or have Food Handler Guidance apply to them.

The Domestic Food Review does not cover:

• other government involvement such as taxation, building codes, local government bylaws, fair trading laws, etc

• export requirements³(noting that all food produced, processed or handled in New Zealand will be largely covered by the proposed Food Act, irrespective of its final place of sale)

• produce for a person’s own use, such as growing your own fruit or vegetables, gathering of watercress, fishing, seafood collection and home-killed meats (including further processing of such products).

3.3 Principles underpinning regulatory controls

In addressing the two broad problems facing New Zealand, the Government has decided that a number of Policy Principles will be applied:

Policy Principle 1: Government involvement and compliance costs imposed on the food sector will be minimised, consistent with government policies and the need for food to be safe and suitable.

Policy Principle 2: New Zealand’s food regulatory regime will be based on application of the current ’Regulatory Model’ (that is the three-tier model outlined in section 4.1 below).

Policy Principle 3: Any government involvement and regulatory controls will be risk-based and science-based as far as possible.

Policy Principle 4: Food businesses will take responsibility for producing safe and suitable food.

Policy Principle 5: Regulatory requirements will be applied consistently and equitably across sectors and groups (the regulatory response will be used reasonably and fairly when identified as the appropriate option).

Policy Principle 6: The food regulatory regime will be seamless and coherent.

Policy Principle 7: Trade and commerce in food and associated products will be facilitated.

² The registration provisions under part 1 of the Food Hygiene Regulations refer to the requirement for food premises to be registered under the Health Registration of Premises Regulations 196. This is specifically authorised by s 120 of the Health Act.

³ Food produced in New Zealand for export is generally expected to meet the same standards of safety and suitability as apply to New Zealand food. Any additional export requirements and procedures were not within the ambit of the Domestic Food Review.