Wilkinson Kate: Food Bill — First Reading 
Wilkinson Kate: Food Bill — First Reading 
[Volume:665;Page:12615] 
Hon KATE WILKINSON (Minister for Food Safety) 
: 
 I move  
That the Food Bill be now read a first time. 
 At the appropriate time I intend to move that the Food Bill be considered by the Primary Production Committee. 
This bill restates and reforms the law relating to trading in food in order to achieve the safety and suitability of all food for sale in New Zealand. It does this by providing for risk-based measures that minimise and manage the risks to public health and by requiring the persons who trade in food to take primary responsibility for its safety and suitability. The bill also provides certainty for food businesses in terms of their obligations and of how their activities will be regulated. 
The food industry is vital to the New Zealand economy. It comprises 35000 to 40000 manufacturing importing retailing and service businesses and up to 200000 additional part-time food premises. It also provides jobs for 20 percent of the working population. 
The retail value of food and beverages is an estimated $13.8 billion per annum and the food service sector—restaurants cafes and the like—has been valued at an estimated $5 billion. New Zealand’s food sector accounts for at least 10 percent of gross domestic product. 
The export revenue from food products and food ingredients produced in New Zealand is estimated to be $15 billion per annum. This means that food exports represent more than 50 percent of the total merchandise exports from New Zealand. 
Significantly for an export-led recovery for New Zealand the domestic food regulatory regime is the platform for exports. The New Zealand domestic standard is used as the basis for negotiating access arrangements with our trading partners. This can minimise the often excessive importing-country requirements that may be imposed but which do not go towards food safety. 
The bill will replace the Food Act 1981 which at nearly 30 years old is outdated and inefficient. As a consequence the Food Act 1981 and its subordinate legislation—in particular the Food Hygiene Regulations 1974—have led to considerable inconsistency in application across New Zealand they have resulted in the imposition of unnecessary compliance costs and they do not do enough to protect consumers or to reduce food-borne illnesses. None the less the Food Bill maintains those aspects of the current regulatory regime that work well. For example it maintains the role of the Government as the principal regulator it retains a local government role in the regulation of food premises and there remains a role for independent third parties to act as verifiers for food businesses. 
The bill seeks to reduce the prescriptive nature of the existing system and to move to an outcomes-based regulatory regime. The new regime will require all food businesses to apply the risk-based measure assigned to their sector. The bill provides for a number of different risk-based measures. This will allow food businesses to be regulated relative to the degree of risk that a particular sector or food-selling activity generally poses. For example a baked goods fund-raiser will no longer have the same regulatory requirements that a bakery has. 
The bill proposes four risk-based measures. The most comprehensive of these in terms of compliance requirements is the food control plan and the least comprehensive is the food-handler guidance. The food-handler guidance is an educative measure for the food safety information that is particular to a food-selling activity. Food-handler guidance will be prepared by the New Zealand Food Safety Authority and provided directly to territorial authorities and relevant sectors. Those operating under the food-handler guidance will need to meet the requirement only of preparing or selling safe and suitable food. They will not be subject to any specific regulatory requirements. 
The bill will also introduce specific and in part new requirements for imported food. All persons importing food will have the duty to ensure that the imported food delivers the same safety and suitability outcomes and meets the same standards that apply to domestically produced food. Furthermore every consignment of food imported into New Zealand will now require a registered importer. The bill contains a regulation-making power relating the categorisation of imported food and the particular criteria that can be applied to each category. 
The combined effect of the provisions on the face of the Food Bill and the regulation-making powers will be the establishment of a comprehensive imported foods framework. The framework is capable of closely regulating and controlling food imports. It will ensure rapid responses to the specific risks that a particular food or food from a particular source might pose before that food enters the New Zealand food supply. Furthermore the framework places specific duties and obligations on the persons involved in the importation of food. 
Many food businesses will be required to be verified against their allocated risk-based measure. The amount of verification required will depend on the risk-based measure assigned to a particular sector. The bill enables the chief executive to recognise and approve both the public and private agencies and persons to conduct these verifications. 
The role of territorial authorities has been maintained and clarified. Among other functions territorial authorities will operate as a registration authority and an enforcement agency for certain food businesses. A territorial authority may also become a recognised agency and may conduct the verification of food businesses. It is anticipated that territorial authorities will have a 5-year window in which they will have the exclusive right to verify certain food businesses. This will help provide a degree of continuity for those businesses that are currently subject to territorial authority inspection. The bill will maintain the capacity in territorial authorities to undertake the full range of food safety and related activities and it will reduce transaction costs for businesses in relation to compliance and enforcement particularly during the transition period. The bill will also enable the Minister subject to appropriate consultation to set national outcomes relating to the performance of territorial authorities in carrying out their functions duties and powers. 
The bill continues the current provisions relating to the recovery of costs that are not directly or indirectly met by the Crown. The provisions require the Minister and the chief executive to take all reasonable steps to recover the costs associated with administering the new Food Act. New provisions for cost recovery also set out those functions and duties for which territorial authorities may recover costs. The bill will also require that any cost recovery undertaken must be equitable efficient justifiable and transparent. 
The bill modernises the enforcement and offence provisions and it substantially increases the penalties from those set almost 30 years ago. The low penalties currently available under the Food Act 1981 have been the subject of judicial comment in the past with one judge describing them as archaic. A number of cases over the years have involved serious harm and risk to consumers. 
This bill sends the clear message that the Government is serious about food safety by ensuring that the available penalties are appropriate to the 21st century food-trading environment. For example under the Food Act 1981 a prosecution for selling food that is unsound or unfit for human consumption or that is contaminated can involve a maximum penalty of $5000 for an individual. Under this bill a person convicted of a comparable offence could expect at the maximum a penalty of 2 years’ imprisonment and a $100000 fine. A body corporate committing the same offence under this bill could receive a monetary penalty of up to $500000. 
The bill also contains regulation standard and notice-making powers. Of particular importance is the ability for the Minister to adopt joint food standards to give effect to New Zealand’s obligations under the Australia - New Zealand joint food agreement. There is also the ability to adopt domestic-only food standards for those limited and exceptional circumstances in which New Zealand might need to opt out of a joint food standard. 
I commend this bill to the House.