- PDF Version (129K) - Print Friendly - Help

Voluntary Implementation Programme

6 Cost recovery

The implementation of VIP will result in a number of functions for Territorial Authorities to undertake. The most significant are:

• Registration

• Auditing

• Compliance

• Enforcement

Registration

Territorial Authorities will administer the registration process for Food Control Plans as Food Safety Programmes. This will involve granting an exemption from the Food Hygiene Regulations and placing them on the NZFSA register of exemptions. This is a relatively minor administrative function.

Provisions for the recovery of costs for the registration of food premises subject to the Food Hygiene Regulations are provided under the Health (Registration of Premises) Regulations 1966. Those cannot be used to recover the costs of granting exemptions from the Food Hygiene Regulations. In practice, most Territorial Authorities combine the registration and inspection (audit) fee into one. This practice could continue through the VIP.

Auditing (verification)

The auditing of Food Safety Programmes under the current Food Act is a contestable activity, which is carried out by third party agencies. While Territorial Authorities will have an area of exclusivity for the verification of certain off-the-peg Food Control Plans under the proposed new Food Act, under VIP the existing auditing arrangements will prevail.

It is NZFSAs view that Territorial Authorities’ performance of auditing functions will be as a ‘natural person’ and as it is a non-mandated contestable activity, cost recovery does not need to be mandated via legislation. Therefore, Territorial Authorities will be able set auditing fees administratively.

Compliance/Enforcement

Currently there are no provisions in the Local Government Act that enables Territorial Authorities to recover the cost of enforcement activity. This type of activity whether provided by local or central Government is funded generally by taxation or rated for the benefit of the whole community.

In the current environment Territorial Authorities undertake compliance and enforcement activities under the Food Hygiene Regulations, and manage any cost recovery according to their own processes for setting fees and recovering costs. Compliance activity is generally rolled into inspection and cost recovered accordingly.

Under the new Food Bill and VIP, compliance and verification/auditing are separate functions. However, where verification/auditing are carried out by Territorial Authorities the compliance functions will be undertaken by the same agency or person thereby minimising transaction effort and costs. Under the Food Bill provisions will be made to enable cost of compliance to be recovered. However, under VIP, NZFSA considers, given compliance activity initially will be via the auditing function no specific compliance cost recovery provision will be necessary.

Costs will be incurred with the appointment of Territorial Authority Auditors and Environmental Health Officers (EHOs) as Food Act Officers. Territorial Authorities will need to apply to NZFSA for approval of EHOs as off-the-peg Food Control Plan (Food Safety Programme) auditors. The cost incurred by NZFSA would routinely be charged to the applicant. As an incentive under VIP, NZFSA will fund this process.

Similarly, Territorial Authorities will need to apply to NZFSA to have EHOs appointed as Food Act Officers. This, on the other hand is a Crown funded activity and the cost under VIP will be funded by NZFSA.

Participation in VIP will provide Territorial Authorities with useful information on financial and resource requirements for the implementation of the domestic food regime. This information will assist with future planning.