Kedgley Sue: Questions for Oral Answer — Questions to Ministers 
Kedgley Sue: Questions for Oral Answer — Questions to Ministers 
[Volume:614;Page:10501] 
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 Committee’s 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 Rt 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 input 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 member’s views are inconsistent because she says that regulation for products actually consumed is overkill while at the same time advocating 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 Rt 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 companies’ compliance costs would be in the hundreds of thousands of dollars and that any company with a 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 Committee’s recommendation that regulation of complementary health-care products should be based on a negative list or blacklist prohibiting unsafe ingredients or is the Minister content to completely ignore submitters’ concerns and adopt the Australian whitelist system wholesale squashing the innovation that has characterised New Zealand’s 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 Government—ensuring that all products on the market are safe. 
Sue Kedgley 
: In the light of the Minister’s 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 committee time and time again that it should complete its study. However certain members on the committee insisted on demanding that more information be provided which delayed the processing of that investigation. 
Sue Kedgley 
: Despite her comments here today does the Minister agree that the Health Committee was correct when it said that the trans-Tasman agency will give unprecedented power to an unelected unaccountable managing director and will involve surrendering control of the New Zealand complementary health-care industry and what is the Minister’s response to the question asked by the chairman of Comvita when he said: “Why would we want to give our sovereignty away to Australia and 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 the agency will be based. There will be legislation through both the Australian and the New Zealand Parliaments. At that time this House and the 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 from which 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 in which the Chief Executive of Nutra-life Health and Fitness Mr Mark Matthews said that a joint agency made sense. 
Mr SPEAKER 
: That is not an official document but the Minister seeks leave to table it. 
Document laid on the Table of the House. 
Rt Hon Winston Peters 
: I seek to table two lots of evidence. The first is that two out of the 12 on the board of the agency will be New Zealanders and secondly that Tariana Turia had the Maori alternative or natural medicines group taken out of the ambit of this agency and perhaps she could explain why. 
Documents not tabled.