King to sign 'draconian' agency deal

By KEVIN TAYLOR, political reporter

A parliamentary inquiry has unanimously recommended against New Zealand forming a joint agency to regulate dietary supplements and alternative medicines with Australia - a day before the Government signs up to the deal.

Instead the health select committee's report released yesterday recommends strengthening domestic regulation of supplements and alternative medicines.

The industry is worried the agency will adopt the Australian system which is said to be draconian - and includes requirements such as flying $800-an-hour auditors first-class around the world to audit suppliers.

The industry claims prices of supplements and alternative medicines will rise - one estimate puts the increase at 15 per cent - and consumer choice will be cut. Smaller firms may also close.

Committee chairwoman and Labour MP Steve Chadwick said the committee considered that the joint agency may offer "too high a regulatory burden" given the level of risk posed by such products.

Health Minister Annette King is due to sign a treaty to establish a joint agency for the regulation of therapeutic drugs, medical gear, supplements and alternative medicines today with Trish Worth, Australia's Parliamentary Secretary to the Minister for Health.

Just before the 11.30am signing a protest is planned outside Parliament and an unprecedented media conference understood to involve every party except Labour and the Progressives will protest at the move.

Ms King told the Herald everybody was assuming the Australian system would be adopted but they were wrong, as were claims New Zealand was giving control to Australia.

A new risk-based system would be developed - which would mean less risky products would have less onerous regulations and products making claims would have to prove them.

She denied that consumer choice would be cut or costs would rise.

In Parliament, Associate Health Minister Damien O'Connor said recent work by the New Zealand Institute of Economic Research showed businesses would face lower compliance costs under a joint agency.

But Gary Mabey, owner of Auckland's Health and Herbs International, which employs 20 staff, said many smaller firms would fold.

His company imports from 12 US firms and if New Zealand adopted Australia's system they would have to spend about $20,000 every 18 months to fly an auditor to America to audit their suppliers.

He said the auditors charged $800 an hour, and first-class airfares and accommodation had to be paid for.

"It really is a junket for the boys," Mr Mabey said.

Employers and Manufacturers Association northern executive officer Garth Wyllie said the Australian system was "incredibly onerous". Adopting a joint system would decrease choice, increase costs and bring no benefits to New Zealand.

An umbrella body for alternative health practitioners, the New Zealand Charter of Health Practitioners, said Ms King should resign before "selling out" control of the industry to Australians.