ACT New Zealand is opposed to the New Zealand Government’s proposal to establish a joint Trans-Tasman body to regulate therapeutic products, including among other things dietary supplements.   The Therapeutic Goods Agency that is proposed is a sell-out to Australian bureaucracy and heavy handed regulation, giving their industry a bonus.

Under legislation to be introduced into Parliament later this year a Trans-Tasman Therapeutic Goods Agency would be established. However the agency would operate under Australian rules and it is intended that the majority of the agency’s board would be Australian appointments.

The Australian regime for dietary supplements protects vested business interests mainly in Australia.  It creates expensive red tape for dietary supplements, even those that have passed the test of credibility such as the US Food & Drug Agency. Of particular concern is that the proposed Bill reduces competition, increases prices while reducing consumer choice.  

Generally, harmonisation under CER and the facilitation of global trade is a laudable goal that ACT fully supports.   In this instance however, there is no upside for New Zealand under this proposal. Rather than facilitate freer trade this proposal restricits trade and involves New Zealand’s adoption of unnecessary and costly regulations. Unquestionably, the New Zealand consumer will get a rough deal under this proposal, New Zealand manufacturers of dietary supplements will be driven to the wall and there will be no enhancement of consumer choice.

We have a very healthy, vibrant and growing dietary supplements industry in this country with a lot of further growth potential.  That growth will be cut off at the grass roots and consumers will lose choice if this measure proceeds.  Some 40% of our dietary supplement market is imported from third countries, principally the USA, and many of them will likely be knocked out of the market by the Australian-based TGA regulations that this Government is about to adopt.

The only winners will be the Australian manufacturers who will gain access to an extended market with reduced competition as they are sheltered under unnecessary regulation and bureaucracy. Consequently, ACT will be vigorously opposing the legislation proposing this change when it is introduced. 

According to an international committee of the American National Nutritional Foods Association, Australia is viewed internationally as the most draconian, regulatory regime for dietary supplements in the world.  It would be complete folly for New Zealand to adopt this regime.