AusBiotech comments on FSANZ cost recovery plans for health claims applications

FSANZ Chief Executive Officer Steve McCutcheon said the proposed cost recovery arrangements were similar to those proposed earlier this year for other types of applications.

“The proposed health claims standard is currently being considered by the ministers responsible for food regulation and cost recovery arrangements need to be in place if a proposed standard is gazetted next year,” Mr McCutcheon said.

After consulting with the industry membership, AusBiotech opposed the plan and said the FSANZ review of cost recovery arrangements for applications conducted in June 2012, and this current review for applications relating to health claims, lacked rigour in terms of the calculation of hourly charges, cost category levels, refunds and instalments and impact analysis in both consultation papers.

AusBiotech noted that the regulatory proposal is likely to impose significant cost to industry and that the potential impact is not minor, and thus AusBiotech will be taking the matter further.

AusBiotech also noted that the Department of Finance and Deregulation is currently conducting a whole-of-government review of the Australian Government’s Cost Recovery Guidelines. AusBiotech recommended that FSANZ postpone any cost recovery arrangements for applications and applications relating to health claims altogether until the review has been completed and any new recommendations on cost recovery from the Australian Government are clarified.