Bitter pill
Political hold-up gives Aussie exporters the edge,
The natural health products industry says Kiwi producers are losing out on overseas contracts because a parliamentary bill – 10 years in the making – has not been passed. In the meantime, Australian companies are beating them to business.
The Aussies are beating Kiwi natural health exporters in capturing big overseas contracts because of delays in passing the Natural Health and Supplementary Products Bill, an industry body says.
Natural Products New Zealand, a group that represents about 80 per cent of the country’s producers of vitamin pills, oil capsules, herbal teas and natural creams and gels, says New Zealand has been falling behind other exporters, with Australian companies gaining an edge in high-growth markets.
The bill, which has been more than 10 years in the making and still going through the legislative process, aims to regulate natural health and supplementary products. It will control low-risk natural health products such as garlic capsules, vitamins and echinacea tablets.
But opposition lobbyers say the bill would only benefit big businesses and puts small businesses at risk because of added costs.
Natural Products NZ executive director Alison Quesnel said the bill was desperately needed to put local firms on a level playing field with other modern countries.
It would allow New Zealand exporters to have recognition and enable them to inform consumers of the health benefits.
Quesnel said: ’’In terms of export, we’ve been told a number of times by our Asian customers that Australian companies have an advantage over us because they have a system that is recognised internationally.
‘‘Even though our system will be less stringent than is the case in Australia, it will still help to boost our exports by providing our overseas markets with greater reassurance about product quality and safety. Importantly, it will maintain New Zealand’s control over setting the regulatory rules for natural health products sold here and overseas under Brand NZ.’’
Product safety and quality are big issues in those markets, she said, which is why the bill’s focus on safety and quality assurance was so important.
‘‘Aligning our regulations with those of our major overseas markets will make it easier to sell New Zealand-made products there and could potentially even provide automatic barrier-free access into some countries.
‘‘There’s an awful lot of scaremongering and misinformation flying around. It’s not serving our growing natural products export sector well and nor is it helping local manufacturers who only sell their products here.’’
‘‘Most of New Zealand’s natural health products manufacturers – from very large companies to small manufacturers – actually support this legislation because we believe it will be good for business, good for consumers, good for the growing local natural health industry, and therefore good for New Zealand’s economy.’’
Kurt Renner, a director at GO Health, said New Zealand companies had missed a lot of opportunities because the bill had taken so long to get through.
New Zealand companies were disadvantaged compared to say Australian health supplement companies in the market, he said.
‘‘The current regulation is very loose. We’re very much viewed as second best compared to the Aussies.
‘‘Under the current regulations we can’t have the government piece of paper. All around the world, if you haven’t got something from the government you’re seen as second best.’’
But Dr Guy Hatchard has been lobbying against the bill because he says it will restrict availability of natural products in New Zealand and hurt small businesses.