Long overdue legislation to unlock the economic and export potential of natural health products must not accidentally add more red tape that harms the growing sector and consumers, industry body Natural Health Products New Zealand told Members of Parliament today.

Natural Health Products NZ represents around 80% of the sector nationwide, with a membership ranging from small businesses to companies employing thousands of New Zealanders, in the areas of production, distribution, research and manufacturing. The association’s Government Affairs Director Samantha Gray presented today to the health select committee on the Therapeutic Products Bill, which is intended to modernise the regulation of a range of categories including medicines, medical devices and natural health products.

“Natural health products are a rising star of the New Zealand economy and the sector has waited a long time for regulatory reform to unlock its huge economic and export potential and protect consumers,” Ms Gray said.

“It’s a sector that contributes $2.3 billion to the economy, including export earnings of $640 million a year. And there is huge potential for further growth by reforming the outdated current law with fit-for-purpose regulation. Our members estimate exports would roughly double if the regulatory environment allows it.

“But the Bill as it stands could have the opposite effect, by creating more red tape. So we are calling on the Health Select Committee to make necessary changes and avoid snatching defeat from the jaws of victory for the country and consumers.”

Some of the crucial changes needed are:

· Regulation of NHPs should be proportionate to their low risk profile, and therefore light touch compared with medicines. The Bill departs from the earlier (discarded) Natural Health Products Bill by unnecessarily regulating NHPS in a similar way to medicines.

· The bill’s requirement for “authorisation” of all products by the regulator should instead be a requirement to “notify” products to the market, except for completely new ingredients. Gaining authorisation for proven safe products will impose significant unnecessary compliance costs which will increase prices for consumers and drive some businesses out of the market.

· The bill should clarify that all appropriate evidence-based health claims allowable in other global markets (for example the Canadian and Australian jurisdictions) are also allowable in New Zealand, so that New Zealand products can compete in export markets on a level playing field.

· Authorisations for export-only products must be flexible to allow our exporters to meet individual markets’ specific terminology and standards.

“The irony is that fit-for-purpose legislation, the Natural Health Products Bill, was before the House, having been supported by a margin of 120 votes to 1 in earlier readings. It was inexplicably dropped when the new government was formed in 2017.

“However, it was widely consulted with industry and experts and contains provisions that would fix the unfortunate problems with this much-needed legislation.

“We urge the members of the Health Select Committee to fix this legislation and ensure a bright future for New Zealand consumers, exporters and business.”

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