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

 

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

Air New Zealand: Business Travellers Return To The Skies In Record Numbers

After a year of talking to a computer, Kiwis are leaving the office to re-connect with their clients, suppliers, and staff. New figures released by Air New Zealand show domestic business and corporate travel has defied global trends by returning ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>

Commerce: House Values Continue To Climb As New Government Measures Announced

The Government’s new initiatives to quell the rocketing housing market were announced last week, just as house prices hit a new high for the end of March. The average value increased 7.8% nationally over the past three-month period, up from the 6.8% ... More>>