Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
Primary Industries Minister Nathan Guy says this part of the inquiry focused on our dairy food safety system and it found the whey protein concentrate (WPC) incident in August was not the result of any failure in the regulatory system.
Food Safety Minister Nikki Kay says the report finds New Zealand's food safety regulatory model is consistent with international principles and is among the best in the world.
Guy says this is a finding of fundamental importance to reassure our off-shore markets.
Kaye says the report was peer reviewed by an international expert in the structure and management of food safety systems, Professor Alan Reilly who heads the Food Safety Authority of Ireland. He confirmed he was satisfied with the quality and integrity of the inquiry's report.
"The report makes a number of recommendations, most of which are about further strengthening the New Zealand food safety system for the challenges that lie ahead," she says.
"Exports to China have trebled since 2007. On top of that, food safety requirements and systems are continuing to evolve.
"New Zealand's export performance depends heavily on the success of the dairy sector and we are committed to ensuring its underpinning food safety system remains world-leading."
The Government will allocate between $8-12 million per year for the following key recommendations:
• Strengthening capability in emerging export markets, particularly China. Additional personnel are needed to support growing China trade. The Government has committed to an additional four people in China and six people in other international markets. The specific location of personnel will be agreed between the Minister for Primary Industries, Minister for Food Safety, Minister of Foreign Affairs and Minister of Trade. The Government has committed an additional $4.430 million in 2014/15 rising to $8.295 million in 2017/18 and out-years to increase the Ministry for Primary Industries (MPI) presence overseas.
• Establishing a centre of food safety science and research. This will bring together New Zealand government agencies and research organisations allowing for collaboration, including with overseas science centres. (At least an additional $5 million per year made up of contributions from Government and industry.)
• Increasing dairy processing and regulatory capability. A working group will be set up to develop a strategic plan and this will see a further $1 million per year invested in dairy capability.
• Establishing a food safety and assurance advisory council to provide high level independent advice and risk analysis. ($250,000 per year.)
• Fast-tracking work to consolidate and simplify legislation and regulations. ($250,000 for 2014/15.)
"The inquiry report also recommends we fast-track the revision of New Zealand regulatory requirements for the manufacture of infant formula and work is already underway on this," Kaye says.
"This is a special work programme due to the vulnerability of babies and young children.
"Legislative change is required to meet some of the recommendations and we will be delivering some of that through the Food Bill, which we hope to pass as soon as possible next year. We are looking at aligning other food legislation with an omnibus bill in 2014," Kaye says.
A copy of the report can be found at: http://www.dia.govt.nz/Government-Inquiry-into-Whey-Protein-Concentrate-Contamination-Incident
