Our Accountability

Objectives

Performance

Highlights

Overview

Accountability comes in many forms.   At one end of the spectrum come fiduciary duties arising from our enabling legislation.  At the other, are our responsibilities to explain our approaches and processes to the people of Australia and New Zealand so as to maintain the integrity of, and confidence in, the food regulatory system.

In April, we received a Gold Award from the Public Relations Institute of Australia (ACT) for our 2005-06 annual report.  According to the adjudicators, we had not only complied with all the requirements of an annual report for an organisation established by the Commonwealth Authorities and Companies Act, but had also provided additional information that enhanced our accountability.  This report was the result of two years of gradually aligning our reporting and planning processes.   We were therefore gratified that this work had been recognised.

Our accountability must start with evidence of wise stewardship of public monies: Appendix 5 contains our financial statements.  The agency has never been over-endowed with funding and so we have developed a culture of prudence and extracting the best value for money from our expenditure.  This has been particularly necessary in recent times, when we have not had the certainty of funding to fill all staff positions with ongoing appointees.   More than one-quarter of our staff are currently non-ongoing.  An increased Budget allocation for the next four years will allow us to maintain our present level of staffing and even to convert some non-ongoing positions to ongoing.   However, we have no intention of abandoning our frugal ways.

Another aspect of accountability – providing information to the Australian Government and its ministers on request – goes to the heart of the democratic process and the role of the Australian Public Service.   We have substantially upgraded our performance in this area during the year, especially in terms of timeliness.  

Then, there needs to be evidence of due diligence and good governance by our Board, as required by the Commonwealth Authorities and Companies Act 1997.  Since the creation of FSANZ in 2000, the Board has had two main roles, namely providing leadership and direction to the agency, and having responsibility for approving food standards for incorporation into the Food Standards Code. This annual report is, in part, testimony to the performance of the Board in both respects.   As stated by the Board Chairman in his letter of transmittal:  ‘The annual report is made in accordance with a resolution of FSANZ Board Members… in accordance with the Finance Minister’s Orders’.

Finally, we make ourselves accountable to our stakeholders, our regulatory partners and the community by promoting a clear understanding of our role and functions.  This is necessary to avoid confusions within the food regulatory system.   It is also necessary to reassure the food industry of our objectivity and fairness in decision making, and consumers that ‘the government’ can be trusted to protect them from unsafe food.

Transparency is the key to much of what we do.   It is the basis of our accountability to the governments and people of Australia and New Zealand.  We are confident that this approach to accountability is appropriate for this agency.

Our roles and priorities

FSANZ’s role within the food regulatory system is to set food standards for the sale of food Australia and New Zealand.   We also have specific responsibilities for coordinating food emergencies and for the national surveillance of food in Australia.  These roles are set out in the FSANZ Act.  

We act in partnership with food regulators in Australian States and Territories and in New Zealand.  Together, we form an interlocking regulatory system that establishes policy for food regulation, sets food standards and enforces compliance with the Australia New Zealand Food Standards Code.  This system is only as strong as its weakest link, which means that regulatory partners have a vested interest in supporting one another wherever possible.  In recent times, this has led to FSANZ concerning itself more and more with the implementation of food standards.  

We have also paid greater attention to our strategic directions, published in the Portfolio Budget Statement, ensuring that they provide an accurate signal of the intent of the agency.  These directions, along with performance measures, are now aligned with our Corporate Plan.  We welcome comment on these priorities from our regulatory partners and our stakeholders.  

Accountability to stakeholders

Requests under FOI legislation

During the year, we received eight requests for information under the Freedom of Information Act 1982,compared with two requests last year.

FSANZ Service Charter

Our Service Charter is a document that sets out the service standards by which we wish to be judged and describes complaints procedures that can be used by individuals or organisations if they believe we have not met those standards.   We received no such complaints in 2006-07.

Regulatory partnerships

The Australia and New Zealand Food Regulation Ministerial Council decides on policy guidelines based on advice from the Food Regulation Standing Committee, comprising senior government officials from New Zealand and the Australian, State and Territory governments.

FSANZ must have regard to the Ministerial Policy guidelines when it develops or reviews food standards.

We notify the Ministerial Council of changes to the Food Standards Code approved by the Board. The Ministerial Council may then seek a review of a food standard, otherwise it becomes law in each State, Territory and New Zealand once it is gazetted (with exceptions for primary production standards in Australia and some standards in New Zealand).

In 2005-06, the Department of Health and Ageing commenced reviews of the Food Regulation Agreement 2002 between the Australian Government and the States and Territories and the Treaty between Australia and New Zealand on the joint system for food standards.   We provided significant technical assistance to the Department on both reviews, which were completed in December 2006.

Australian States and Territories

Under a 1991 Inter Governmental Agreement between all Australian governments, the States and Territories adopt, without variation, food standards recommended by the National Food Authority (now FSANZ). The purpose of the 1991 agreement was to consolidate responsibility for developing food standards in one specialist agency and to ensure the uniformity of food standards across all States and Territories, which continue to have primary responsibility for enforcing food laws.

The Australian Government and the States and Territories became signatories to an Inter Governmental Agreement for a new food regulatory system on 3 November 2000, including the creation of FSANZ as a bi-national standard setting agency.  The Australian Parliament passed an amendment Act setting up these new arrangements, which came into effect on 1 July 2002. The Food Standards Australia New Zealand Amendment Act 2007, proclaimed on 1 July 2007, will result in changed requirements for Applicants and shortened timelines for FSANZ to process Applications.  These new arrangements will come into effect on 1 October 2007.

New Zealand

On 1 July 1996, a Treaty between Australia and New Zealand to establish a single joint food-standards system came into force. The joint arrangement aims to harmonise food standards between the two countries, reduce compliance costs for industry and help remove regulatory barriers to trade in food.

The Treaty does not cover maximum residue limits, food hygiene provisions and export requirements relating to third country trade. It also contains provisions that allow New Zealand to opt out of a joint standard for exceptional reasons relating to health, safety, trade, environmental concerns or cultural issues.   In such cases, FSANZ may be asked to prepare a variation to a standard to apply only in New Zealand.

The Treaty to develop joint food standards requires that FSANZ and the New Zealand Minister of Health conclude a funding and performance agreement. This agreement details the services FSANZ is to provide and includes quarterly performance reporting, details of New Zealand’s contribution and the payment schedule.  The report of a review of the Treaty is presently being considered by the governments of Australia and New Zealand.

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