Chapter 1


Chapter 1

Introduction

The inquiry

Previous inquiry

On 26 November 2009, the Senate referred the Food Standards Amendment (Truth in Labelling—Palm Oil) Bill 2009 to the Community Affairs Legislation Committee (the committee) for inquiry and report by 26 August 2010.

1.2        The committee received 448 submissions. No public hearings were held.

1.3        On 26 August 2010, the committee tabled a brief report concluding:

On 19 July 2010, the Governor-General prologued the 42nd Parliament and dissolved the House of Representatives. After due consideration, the committee has resolved not to continue its inquiry into the bill. If the bill is reintroduced in the new parliament, the Senate may again refer it to the committee for inquiry.[1]

1.4        The evidence received by the committee was tabled in the Senate at that time.

Current inquiry

1.5        On 30 September 2010, the Food Standards Amendment (Truth in Labelling—Palm Oil) Bill 2010 (the Bill) was introduced, and on 27 October 2010 was referred to the committee for inquiry and report by the fourth sitting day of 2011.[2] On 9 February 2011, at the request of the Chair of the Committee, the Senate granted the committee an extension to 16 June 2011.[3]

1.6        The committee resolved to adopt the submissions received from the previous inquiry and invited further submissions by 11 February 2011.

1.7        The committee received 528 submissions including those received during the 42nd Parliament. A list of individuals and organisations that made public submissions to the inquiry together with other information authorised for publication is at Appendix 1.

1.8        The committee conducted two public hearings, the first on Monday 18 April 2011 in Canberra and the second on Tuesday 19 April 2011 in Melbourne. Appendix 2 lists the names of those who appeared at the hearing, either in a private capacity or representing an organisation. Submissions, additional information received including form letters and answers to questions on notice and the Hansard transcript of evidence may be accessed through the committee's website at:
https://www.aph.gov.au/Senate/committee/clac_ctte/food_standards_amend_bill_2010/index.htm.

1.9        The committee thanks those organisations and individuals who made submissions and gave evidence at the public hearings.

Related inquiries and reports

1.10      A related bill, the Food Standards Amendment (Truth in Labelling Laws) Bill 2009 was referred to the Senate Economics Legislation Committee for inquiry in 2009. This inquiry considered the concept of truth in labelling in relation to country of origin labelling.

1.11      The report found that 'truth in labelling'—clear and accurate information about the provenance of food products—was a commendable objective with significant community support. However, before this could be achieved a number of complex factors and issues need to be considered.[4]

1.12      The report found that while there was merit in the objectives of the Bill, it was not drafted to achieve these objectives without circumventing the current regulatory environment. The report found that concerns could be more adequately dealt with through the Council of Australian Governments (COAG) and Australia and New Zealand Food Regulation Ministerial Council Review of Food Labelling Law and Policy Review (the Review) that was undertaken in 2009 and 2010.[5]

1.13      The Review was chaired by former Australian Health Minister, Dr Neil Blewett AC and released its final report in 2011. The report, Labelling Logic: Review of Food Labelling Law and Policy (2011), provides a wide-ranging and comprehensive analysis of current issues related to food labelling, including palm oil. The summary of consumers' submissions received by the Review notes that many consumers were concerned about the use of palm oil in food and would like to see labelled on food products.[6]

1.14      The Review considers palm oil labelling from both a health and environmental perspective. In relation to health, the relevant recommendation is:

Recommendation 12: That where sugars, fats or vegetable oils are added as separate ingredients in a food, the terms ‘added sugars’ and ‘added fats’ and/or ‘added vegetable oils’ be used in the ingredient list as the generic term, followed by a bracketed list (e.g., added sugars (fructose, glucose syrup, honey), added fats (palm oil, milk fat) or added vegetable oils (sunflower oil, palm oil)). [7]

1.15      However, the panel suggests that food labelling for 'generalised values issues', such as environmental or ethical concerns, is best left as a market response mechanism regulated by consumer protection laws.[8]

Purpose of the Bill

1.16      Current food regulation does not require palm oil to be explicitly labelled on food products. This Bill seeks to mandate the labelling of palm oil, for the stated purpose of ensuring 'that consumers are provided with clear, accurate information about the inclusion of palm oil in foods'. The Bill also seeks to encourage 'the use of certified sustainable palm oil in order to promote the protection of wildlife habitat'.[9] The Bill proposes that regulations made to determine the sustainability of palm oil should reflect the criteria used by the Roundtable on Sustainable Palm Oil (RSPO).

Provisions of the Bill

1.17      The Bill proposes to amend the Food Standards Australia New Zealand (FSANZ) Act 1991. Clause 1 prescribes the manner in which food manufacturers must list palm oil on food labels when it is used as an ingredient. This clause also sets out the regulations for determining the sustainability of palm oil, and following, how the designation CS (certified sustainable) palm oil may be used.

1.18      Subsection (1) states that producers, manufacturers and distributors of food containing palm oil must include 'palm oil' on the ingredients list regardless of the quantity of palm oil present. It also allows for palm oil that has been certified sustainable in accordance with the regulations, to be listed as CS palm oil.

1.19      Subsection (2) states that the criteria for determining the sustainability of CS palm oil should reflect those of the RSPO.

1.20      Subsections (3) to (6) state that a standard as per subsection (1) must continually be in force and not subject to review, but do provide scope for changes to details of the standard through existing mechanisms.

1.21      Other issues in relation to how the Bill fits into existing food standards regulatory mechanisms are discussed in Chapter 2.

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