Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Therapeutics Decision Cuts Choice, Ramps Up Costs

Therapeutics Decision Cuts Choice, Ramps Up Costs, Protectionist

Media statement Monday, December 8th, 2003

Therapeutics decision cuts choice, ramps up costs, protectionist

The Health Minister's announcement that Government intends to sign up this week to Australia's Joint Therapeutics Authority 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 Northern) says.

"The Government is taking a sledgehammer regulatory approach to crack a walnut sized concern," said the Association's Executive Officer Garth Wyllie.

"Nowhere else in the world is such an onerous set of regulations placed on this industry," he said." Why are we doing it?

"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.

"The Joint Authority will see our consumers lose choice. We have over three times more product choice than Australia, and we're adopting the Australian regime which is preventing many new products entering their market.

"The costs of the Australian Therapeutic Goods Authority for product registration make our market size not worth the bother for many international products.

"Even Australian manufacturers think our decision to follow their approach is daft.

"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.

"The decision comes at a time when the Australian regime is being criticised for reducing innovation in health products; the extra regulation and costs will impact disproportionately more heavily on the smaller New Zealand market and decrease innovation more here.

"Companies will rationalise the products they market in New Zealand; many US products in particular will cease being available.

"The price of remaining health products will jump by an estimated 15% on everything from band aids to sunscreens.

"Local manufacturers and importers face added bills to register their products under the Joint Agency scheme, including:

1. Registering a new dietary supplement will cost ($NZ800 to $NZ1000 if its formulation has no new ingredients.

2. The cost of registering a new dietary supplement with new ingredients starts at $NZ3000 and may cost $NZ10,000 or more. At present New Zealand bans unacceptable ingredients.

3. To keep a product registered costs $NZ360 per product annually. Companies with a 1000 products face an annual bill for this alone of $NZ360,000.

4. New audit fees prescribed by the Authority are far higher than anywhere else in the world averaging $NZ17,000 annually.

"That Maori traditional remedies and some products marketed within some Australian states are exempt makes the decision very poor."

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news