Outrage over health pills law

By KEVIN TAYLOR political reporter

The $200 million-a-year health supplements business is up in arms over a Government plan to join forces with Australia to regulate the industry.

Under the Government plan, all dietary supplements and alternative remedies will be classified as pharmaceuticals and regulated through a new transtasman agency.

Opponents - including some MPs - say the country will lose control of its regulations to Australia, and that the Government is sidelining the report from a year-long inquiry by a parliamentary select committee, due out today.

Alternative medicines, such as herbal remedies or homeopathy, are a big business.

The Health Ministry says New Zealand has about 10,000 practitioners of "complementary and alternative health".

The health food and supplement industry has an annual retail turnover of $222 million, exports supplements and ingredients worth about $100 million, and employs more than 3000 people.

Health Minister Annette King and Australia's Parliamentary Secretary to the Minister for Health and Ageing, Trish Worth, are to sign a treaty on Wednesday establishing a new agency to replace present regulatory bodies on July 1, 2005.

Ms King said last night that products such as garlic would not be covered, but multi-vitamins and other such products would.

The amount of regulation would depend on the product and the therapeutic claims being made for it.

She said she was criticised for not having regulations after this year's big recall of Pan Pharmaceuticals products, made in Australia.

She rejected criticism of the Government's moves, saying they were announced in principle late last year and were not new.

Talks about a joint regulator had been going on for five years.

"This is all about quality, public safety, and standards. We require standards for the food we sell ... We require standards for pharmaceuticals and medical devices.

"And one of the hard lessons I learned this year was that the public demanded standards and regulations for complementary healthcare."

But Green MP Sue Kedgley and NZ First MP Pita Paraone are upset that the Government is including alternative medicines and supplements before the health select committee report is out.

The year-long inquiry was to consider a framework to govern the regulation of dietary supplements and alternatives remedies, including whether it should be done by the joint agency.

The risks of such products were also to be assessed.

Ms King said the decision to include alternative medicines and supplements was made in principle in November last year.

Delays in completion of the committee's report could be blamed on Ms Kedgley constantly requesting more information.

"I always made it clear we were continuing to work on it. Nothing was ever put on hold and that was made clear by the select committee chair [Steve Chadwick]."

Steve Chadwick said the Government was not supplanting the report, which is due to be released today.

"Even though you have heard probably some anger from the Greens, the report will be extremely helpful when we are looking at our own law."

Amy Adams, a spokeswoman for the dietary supplements industry's educational body, the NZ Health Trust, said the industry was absolutely gutted by the move.

"We have evidence showing this will cost consumers' choice, increase compliance costs and see New Zealand jobs disappear.

"We feel really betrayed by Annette King and her officials throughout the whole process."



Ms Adams said the Australian Therapeutic Goods Administration - which will merge with the Health Ministry's Medsafe unit to form the new agency - had been a "spectacularly unsuccessful" bureaucracy.

Ms King denied the agency would be dominated by Australians.

It would have offices in both countries and its ministerial council would include both Health Ministers.

Health-watch

On Wednesday, the Government will sign a treaty with Australia to establish a joint drugs agency.

As well as medicines and medical equipment, it will regulate dietary supplements and alternative remedies.

Opponents say New Zealand will lose control of decision-making to Australia, Kiwi dietary supplements firms will be hurt, and customers will have less choice.