The Government proposal to adopt the Australian system for the regulation of dietary supplements is a sell-out to Australian bureaucracy and heavy handed regulation, says ACT's Health spokesman Ken Shirley.

Under legislation to be introduced into Parliament later this year a Trans Tasman Therapeutic Goods Agency would be established. However the agency would operate under Australian rules and it is intended that the majority of the agency's board would be Australian appointments.

"While harmonisation under CER is generally a laudable goal, there is no upside for New Zealand under this proposal. Rather than facilitate freer trade this proposal involves New Zealand's adoption of unnecessary and costly regulations.

"Unquestionably the New Zealand consumer will get a rough deal under this proposal and New Zealand manufacturers of dietary supplements will be driven to the wall.

"We have a very healthy, vibrant and growing dietary supplements industry in this country with a lot of further growth potential. That growth will be cut off at the pass and consumers will lose choice. Some 40 percent of our dietary supplement market is imported from third countries, principally the USA, and many of them will likely be knocked out of the market by the Australian regulations the Government is about to adopt.

"The only winners will be the Australian manufacturers who will gain access to an extended market with reduced competition as they are sheltered under unnecessary regulation and bureaucracy. Consequently, ACT will be vigorously opposing the legislation proposing this change when it is introduced," concluded Ken Shirley.

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