NZ manufacturers facing soaring costs
dietary supplement industry, in favour of a joint authority with
Australia. The news has provoked angry responses from manufacturers
who argue that they are facing higher costs for a reduced number of
products.
New Zealand's health minister said this week that the country intends to sign up to Australia's Joint Therapeutics Authority, despite the view of a select committee commissioned to evaluate the benefits and risks of such a move. This will cut consumer choice by two thirds, increase costs by around 15 per cent, and create protectionist anomalies in how the regulations are applied, the Employers & Manufacturers Association says.
"We have presented viable alternatives. The dietary supplements industry and associated therapeutic product groups have invested a huge amount of time and resources in preparing submissions only to be overridden by ministerial arrogance," said the Association's executive officer Garth Wyllie.
The association claims that the New Zealand market has more than three times more product choice than Australia.
"The costs of the Australian Therapeutic Goods Authority for product registration make our market size not worth the bother for many international products,"said Wyllie.
"The New Zealand industry accepts 'high risk' medical products need to be regulated to meet the highest safety standards but they don't accept the same level of regulation should be applied to 'low risk' products such as dietary supplements, sunscreens and non medical therapeutic products."
Australia is set to bring in tighter regulation of supplements, with its medicines body the TGA to gain new powers to regulate the industry after a government review of herbal and complementary medicines called for extensive reforms to the sector to restore consumer confidence in natural medicines. An expert committee called for the TGA to introduce more rigorous assessment of ingredients used in complementary medicines, and also require evidence to back claims for such products.
According to the association, the price of remaining health products will jump by an estimated 15 per cent. Local supplement manufacturers and importers will have to pay between $NZ800 and $NZ1000 to register a product under the Joint Authority scheme, if its formulation has no new ingredients. This could go up to $NZ10,000 or more with new ingredients, claims the group.
It added that new audit fees prescribed by the Authority are far higher than anywhere else in the world averaging $NZ17,000 annually.
Green MP Sue Kedgley also voiced her disappointment at the decision to keep control of New Zealand's dietary supplement industry through establishing a trans-Tasman therapeutic products agency.
"The Minister's contempt for the select committee process is a slap in the face to the MPs who studied this issue for a year and for the submitters who travelled from all over the country to give evidence."
The New Zealand's dietary supplements industry is estimated to be worth around NZ$200 million (€106m).
