Industry Frustrated by Government Inertia

Media release

29 March 2017

Industry Frustrated by Government Inertia

The Natural Health Alliance today called on the Government to withdraw the Natural Health Products Bill expressing concerns at an industry meeting with Act Party Leader David Seymour.

Alliance spokesperson Bronwynne Howse said that this legislation will mean many popular household natural products will no longer be available to be purchased from kiwi retailers, and it will force many of the New Zealand based companies who manufacture, import and sell natural health products out of business.

“The Natural Health Alliance has been making representations over the proposed legislation for the past 10 years – to say we are frustrated by the lack of Government response to our concerns would have to be an understatement”, she said.

“We have communicated our views to MP David Seymour today, who has undertaken to raise these concerns with the Government - 10 years is long enough to face this level of uncertainty in our businesses and the legislation needs to be withdrawn”.

“The impact of this legislation means that natural products such as Lypo-Spheric Vitamin C and several combination products which include well known ingredients such as Garlic, Echinacea and Ginkgo will not meet new labelling requirements and the fees to register these products and ingredients will be too high for many of the small to medium sized natural health companies in New Zealand”.

“The proposed fees are exorbitant when there is absolutely no benefit in return. Many companies have well over 100 products which will mean at least an additional $17,000 per year every year in compliance costs. This is a cost many natural health companies simply can’t afford, said Ms Howse.

“We are talking about natural health products like vitamin C, fish oil, and evening primrose oil – not high tech medicines, and any regulatory framework needs to reflect that”.

“In addition, the proposed requirements to disclose the actual amount of each ingredient used in a blended product, instead of just listing the ingredients means that the majority of natural products which are currently imported from other countries, such as the USA, will no longer meet NZ requirements, and will not be available for purchase locally”.

“The Government is requiring companies to disclose the proportions of all ingredients in their products. That’s commercial information that will be available to their competitors. This stifles innovation and product availability in New Zealand.”

Ironically – consumers will be able to go online to purchase products from overseas that are banned in New Zealand It is not clear why the Government would advantage international on-line shopping by disadvantaging kiwi businesses.

“The Alliance is concerned that Parliament may consider this Bill without knowing the rules and regulations that will affect business. The 71 pages of amendments go far beyond that intention.”

“We believe the Government needs to withdraw this bill. What we have now works for New Zealand consumers and it works for New Zealand business, there is no "burning platform" problem here that needs a new law,” said Ms Howse.

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About the Natural Health Alliance

The NHA represents over 70 mainly small to medium sized business providing natural health products to kiwi consumers. Members include importers, manufacturers, practitioners and retailers.

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