Corporate Overview
Highlights 2008-09
FSANZ’s roles and responsibilities
Food Standards Australia New Zealand (FSANZ) is a statutory authority established by the Australian Government under theFood Standards Australia New Zealand Act 1991. Our goal is to achieve ‘a safe food supply and well-informed consumers’.
The Australian Government minister, with oversight for FSANZ and for chairing the Ministerial Council, is the Parliamentary Secretary to the Minister for Health and Ageing, the Hon. Mark Butler, MP. Senator the Hon. Jan McLucas was Parliamentary Secretary until 9 June 2009.
FSANZ is responsible for developing food standards (regulations) for Australia and New Zealand, as well as a number of other activities specific to Australia only. We work within the provisions of the FSANZ Act, in particular three main objectives for our activities: the protection of public health and safety; the provision of adequate information for consumers; and the prevention of misleading or deceptive conduct.
In carrying out our work, we also have regard to the need for food standards to be based on risk analysis using the best available science, and the desirability of encouraging an innovative and competitive food industry.
We receive policy advice and guidelines from the Australia and New Zealand Food Regulation Ministerial Council, which has oversight of food standards put forward by FSANZ. We also work within broader government policies, including those of the Council of Australian Governments, such as the requirement to apply the minimum regulation necessary to meet our objectives. In this regard, we liaise with the Office of Best Practice Regulation to ensure that our regulatory impact statements justify any costs associated with new or amended food standards.
Food standards approved by the FSANZ Board and endorsed by the Ministerial Council are gazetted (published) and appear in theAustralia New Zealand Food Standards Code. The standards cover the composition, labelling and handling of food. Food businesses in Australia, and to a large extent New Zealand, must comply with the requirements of the Code, which have the force of law.
Policy guidelines that we receive through the Ministerial Council are generated by the Food Regulation Standing Committee, the latter comprising representatives of State and Territory governments and the Australian and New Zealand Governments. These governments are responsible for the broader food regulatory system, within which FSANZ plays a key role:
The other key element of the food regulatory system is the enforcement of food standards. This role is probably the most visible part of the system to the public. Each jurisdiction in Australia and New Zealand is responsible for ensuring industry compliance with the national food standards or for taking necessary action in the event of food emergencies.
Historically, each jurisdiction has made its own arrangements to enforce compliance with the Code. More recently, the Implementation Sub-Committee has taken steps towards a more national approach to enforcement. FSANZ has responded to this approach by coordinating its standard-development activities more closely with those of the sub-committee.
This has been necessary because FSANZ generally produces ‘outcomes-based’ food standards, rather than prescriptive standards. Such standards do not readily provide enforcement agencies with targets against which to measure compliance. We are continuing to work with our regulatory colleagues to provide standards that are capable of appropriate enforcement.
New Zealand has its own arrangements for addressing hygiene and food handling issues, including food safety regulations for the primary industries. FSANZ develops standards in these areas for Australia, as well as coordinating national surveillance activities and a national food recall scheme.
Structure and processes
FSANZ maintains offices in Canberra and Wellington, with staff drawn from a wide range of disciplines. When necessary, we augment this expertise by commissioning consultancies and by drawing on the skills and knowledge of our stakeholders and regulatory partners.
Figure 1 depicts the organisational structure for the agency. We use an established risk analysis process to develop food standards, represented by the three central columns in the chart – that is, two risk management Branches (Canberra and Wellington) and a risk assessment Branch, each under a General Manager. Our Chief Scientist ensures the quality of our scientific outputs, while a fifth General Manager has oversight of legal aspects of our work and provides high-level regulatory advice.
The purpose of risk analysis is to identify any potential risks to introducing new food standards or amending existing ones. For example, certain foods or food technologies cannot be introduced into the marketplace unless FSANZ has evaluated their safety and their possible impact on health, especially the health of vulnerable populations.
Once the risks are understood, risk managers – in consultation with consumers, regulatory partners, public health professionals and industry – develop management options for controlling or minimising those risks. These options can range from rejecting an Application to change the Code, to full approval. Specific labelling statements are required to ensure consumers know what is in a food product and its possible effect on human health.
Figure 1. FSANZ organisation chart as at 30 June 2009
Our Chief Executive Officer reports directly to the FSANZ Board, comprising twelve people from Australia and New Zealand. The Board sets the strategic directions for the agency and is responsible for approving or amending recommendations to change the Australia New Zealand Food Standards Code put forward by staff. In turn, the Ministerial Council can request reviews of the Board decisions.
Anyone can apply to FSANZ to amend the Food Standards Code. FSANZ processes for assessing Applications appear in Appendix 3 and in the Application Handbook.
Evidence-based food standards
The Australian Government has highlighted the need for regulation to be evidence based. The need for such an approach is identified in the FSANZ Act. Objective regulation can only be developed when the underlying facts and assumptions are transparent, and when regulatory decisions are made solely on this evidence base. Where the evidence is equivocal or unable to suggest a risk management approach, FSANZ will acknowledge that position.
Before FSANZ can consider changes to the Food Standards Code, we must gather as much information as possible about the nature of the risk and the likely impact of new or amended food standards on the community. This body of evidence – known as the evidence base – needs to contain the best available information at the time of an assessment.
We obtain much of the scientific information from the company requesting an amendment to the Code. The Application Handbook provides details of the data we require for particular situations. If a company is unable to supply the data, we can reject an Application at an early stage. The onus is on the applicant to provide the evidence that their proposed food or food ingredient is safe.
Specialist staff at FSANZ verify the company’s evidence with information obtained from their own scientific sources, including that obtained from overseas national regulators. FSANZ analyses raw scientific data and other information, and reaches conclusions which inform regulatory decisions. We sometimes generate our own databases and data systems to assist decision making – for example, DIAMOND for dietary modelling data and NUTTAB for statistics on nutrients in foods.
The evidence base may contain social sciences information, such as studies into consumer attitudes and behaviour, which we commission. It also includes cost-benefit analyses in the form of regulation impact statements.
We base our scientific risk assessments on the best available evidence and do not usually commission laboratory studies. Such studies are generally unnecessary for the majority of the agency’s work. Where they are required, we commission analytical work to inform the regulatory process.
At various stages of standards development, we release reports for public comment that summarise our evidence base. This is to ensure that all issues have been addressed and our evidence base is as accurate and as comprehensive as possible.
Reporting our performance
FSANZ’s formal reporting mechanism is tied to the agency Outputs and Outcomes contained in the Portfolio Budget Statements 2008-09. Our agency Outcome is ‘a safe food supply and well-informed consumers’. The Outputs of all our activities have that Outcome as an objective.
This annual report lists performance targets for main groups of activities, along with quantitative or qualitative measures of success in meeting those targets (see Priorities and Performance 2008-09). As indicated below, FSANZ will report against a new Program in 2009-10 instead of the Outputs and Outcomes structure.
While this fulfils our reporting obligations under the Commonwealth Authorities and Companies Act, we also brief the Parliamentary Secretary for Health and the New Zealand Minister for Food Safety on specific issues during the year, and the FSANZ Chair provides a report of activities and issues to the Australia and New Zealand Food Regulation Ministerial Council at its biannual meetings.
In addition, as far as is practicable, we publish our regulatory intentions and supporting reasons on our website, and work closely with our regulatory partners to achieve the best outcomes for all stakeholders in the regulatory process.
Ultimately, however, our performance can be judged by the agency Outcome of ‘a safe food supply and well-informed consumers’. In achieving this Outcome, FSANZ is but one element of a food regulatory system. Our agency Outcome is dependent on the policy and enforcement arms of the system, as well as our own endeavours.
Public confidence in food remained high in 2008-09. We interpret this successful Outcome as being due, in no small part, to our performance within an integrated regulatory system.
Summary of financial performance
In 2008-09, we received $17.185 million appropriation funding from the Australian Government and a further $0.012 million capital injection. As part of the bilateral partnership agreement with New Zealand, the New Zealand Government contributed a further $1.545 million towards the cost of joint activities we undertake for both countries. We also received $0.290 million from the Department of Health and Ageing to fund nanotechnology activities and limited revenues for fee-for-service activities and royalties on publications. In managing FSANZ’s finances, the Board, through its Finance, Audit and Risk Management Committee, works to a four-year financial plan.
Financial outcomes
During the year, operating revenue – including revenue from the Australian and New Zealand Governments – was $20.630 million and operating expenses were $20.772 million, resulting in an operating deficit of $0.142 million.
Four-year financial plan
The four-year plan has a number of assumptions relating to future income, changes in expenditure and the accrual of liabilities. We have assumed revenue from the Australian Government is known from the Portfolio Budget Statements 2009-10. The New Zealand Government has made a proportional contribution.
The four-year plan for 2009-10, and the forward years, assumes that FSANZ will operate a balanced budget over that period. We expect inevitable changes to both revenue and the level of expenditure as new priorities emerge and workloads change. The Finance and Audit Risk Management Committee and the Board regularly review the four-year plan to ensure our future financial position remains sound.
Certificate of Compliance
The 2008-09 Certificate of Compliance was sent to the Department of Finance and Deregulation before October 15th, as required
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Priorities and Performance 2008-2009