Dissenting Report—'Oils ain't Oils'
Independent Senator Nick Xenophon and Australian Greens Senator Rachel
Siewert
1.1
The Food Standards Amendment (Truth in Labelling – Palm Oil) Bill 2010 aims
to provide consumers with the information they need to make an informed choice
about the products they buy and the foods they consume.
1.2
It's estimated that Palm Oil is present in approximately 50 per cent of
products on supermarket shelves, ranging from food products to cosmetics to
household items. However it is impossible to say which products do contain Palm
Oil and which do not because Palm Oil is not required to be labelled under current
food labelling regulations.
1.3
That is, consumers are not able to look at the ingredients list on the back
of a packet of biscuits, for example, and see whether or not it contains Palm
Oil. Without that information they are unable to make an informed choice about
whether or not they want to buy that product.
1.4
Under current food labelling regulations, Palm Oil is able to be
labelled 'Vegetable Oil', but this does not enable consumers to know whether
the 'Vegetable Oil' is Sunflower Oil or Olive Oil or Cottonseed Oil or Palm Oil
or Soybean Oil.
1.5
The provisions of the Bill was supported by the COAG and Australia and
New Zealand Food Regulation Ministerial Council Review of Food Labelling Law
and Policy Review (the Blewett Review) which recommended (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 (eg. added sugars (fructose, glucose syrup, honey), added fats
(palm oil, milk fat) or added vegetable oils (sunflower oil, palm oil)).
1.6
The public response to the issue of Palm Oil labelling has been
overwhelming. Over 448 submissions were received to the Committee Inquiry into
this Bill under the 42nd Parliament with a further 78 received to the current
Committee Inquiry. Consistently, submitters argued for a right to know.
1.7
A petition was also tabled to the Inquiry, of 163,917 Australians who
called on the Government to legislate for mandatory Palm Oil labelling through
the 'Don't Palm Us Off' campaign.
1.8
This Bill is not about a boycott of Palm Oil. It is simply requiring
manufacturers to label it if it is an ingredient in the product so that
consumers are able to make an informed choice.
1.9
The Bill also provides for the labelling of certified sustainable Palm
Oil, where manufacturers who use certified sustainable Palm Oil can
differentiate it and again, allow consumers to be able to make an informed
choice.
If we are what we eat, we have a right to know what we're eating ...
1.10
Section 18 of the Food Standards Australia New Zealand Act 1991 states
that:
The objectives (in descending priority order) of the
Authority in developing or reviewing food regulatory measures and variations of
food regulatory measures are:
a) The
protection of public health and safety; and
b) The
provision of adequate information relating to food to enable consumers to make
informed choices; and
c) The
prevention of misleading or deceptive conduct.[1]
1.11
Under subsection (b) (and arguably subsection (c)), the labelling of Palm
Oil is therefore appropriate.
1.12
The purpose of labelling products which include Palm Oil will provide
consumers with adequate information to assist them in their purchasing
decisions. To label Palm Oil as 'Vegetable Oil' as is currently the case does
not provide consumers with adequate information to make an informed choice.
1.13
Each year, Australians consume an average of 10 kilograms of Palm Oil
each and yet they do not know which products contain Palm Oil and which don't.
1.14
Submissions to the Inquiry from members to the public were consistent in
their message.
Our labelling
laws need to require manufacturers to tell the truth, so that consumers can
make an informed choice about the products they're buying. Palm Oil should be
labelled as "Palm Oil" It's as simple as that.[2]
James Kemp
As an
informed citizen, I feel it respectable to say that I deserve to be given the
choice of purchasing items that contain palm oil, and items that don't. In the
last ten years alone, public product knowledge and product awareness has come
terrifically far, to the point where some ingredient listings are of absurd
lengths, and I thank you for that. But, just as [coeliacs] deserve to know if
there is any wheat in a product, and just vegans deserve to know if there is
any animal product in an item, the public deserve to know what products contain
palm oil, and those that do not.[3]
Caleb Sheppard.
As a consumer
I have found it very difficult to avoid buying products which contain palm oil
because the information is not provided by the manufacturer. I oppose the use
of palm oil in food manufacturing on health and ethical grounds and believe it
should be easier for me to shop for my family making informed choices.
Currently, I have to ring the manufacturer for each product to check if it
contains palm oil. This is untenable. I consider the labelling of palm oil in
processed foods as vegetable oil deliberately misleading and believe change is
required to provide the consumer with an understanding of the source and health
implications of their choices.[4]
Amy Prendergast
I would like
to think that it is a basic right for consumers to be provided with accurate
and truthful information to enable them to make an informed choice about the products
they are eating and purchasing. The government should ensure standards are
introduced and enforced to ensure this. It is clearly not in the interests of
consumers to “hide” ingredients in products and this practice should be stopped
as it only supports unhealthy/unsustainable ingredients being used while
misleading consumers/retailers/the government.[5]
John Phillips
I believe
that I and other consumers have the right to choose not to purchase products with
palm oil in them. Whether or not our collective action will pressure companies
into finding alternative ingredients (or sustainable methods of producing palm
oil) is beside the point. Of course I hope for that, but the point, in this
enquiry, is that we have the right to be equipped with the information to make
that choice.[6]
Angela Meyer
I support the
mandatory labelling of palm oil on products that I buy because I deserve the
right to choose. I should be able to choose products that do not contain palm
oil. At the moment I can not do this because Palm Oil is not listed separately
on the packaging on products that I purchase for my family. I want the freedom
of choice and I believe this is a legitimate request.[7]
Sharon Jewell
I strongly
support the mandatory labelling of palm oil. I am writing from a personal
perspective as the main purchaser of grocery products for our family. I was
horrified to learn of the destruction caused by the production of this common
ingredient found in so many supermarket items and sold to us without our
knowledge. How can we be make responsible decisions about what we purchase when
the truth is hidden from us? There is no excuse to not inform the public of the
ingredients in products they buy, the choice is then up to them.[8]
Jill Seymour
I believe it
is an important right for all Australians to be able to make informed decisions
on goods purchased based on the ingredients used in the production of these
goods. To group a variety of different oils as vegetable oils is not acceptable
and I call for the specific type of vegetable oil to be made clear on products
especially when containing Palm Oil.[9]
Tricia O'Brien
Why Palm Oil isn't just your average 'Vegetable Oil'
1.15
Over 85 per cent of the world's Palm Oil is produced in Malaysia and
Indonesia and every hour, an area the size of 300 soccer fields – equal to
1,645,920 square metres – is deforested. As a result, an estimated 50
Orang-utans die each week as a result of loss of habitat.
1.16
The United Nations Environment Programme believes that Palm Oil is the
major driver of deforestation in Borneo and Sumatra, and the biggest threat to
the survival of the Orang-utan[10],
and a significant contributor to greenhouse gas levels.
1.17
At this rate, the International Fund for Animal Welfare believes
Orang-utans could be extinct in the wild within the next ten years.[11]
1.18
Put simply, the production of Palm Oil does have an impact on
Orang-utans and Australians who wish to shop and eat ethically should be
provided with the information that allows them to do so.
1.19
Mr Tim Wilson from the Institute of Public Affairs agreed that in the
interest of enabling a free market, consumers needed to be provided with
adequate information.
Senator XENOPHON—Because you are a free-market think
tank, I thought I would read a bit of Adam Smith this morning about the
invisible hand. I think that essentially what Smith said 300 years ago was
that, for markets to work, people need to be informed. Do you agree with that?
Mr Wilson—Yes.
Senator XENOPHON—A good market is an informed market.
Mr Wilson—There is always a certain amount of
information that is withheld, and there is always a certain amount of
information asymmetry between buyers and sellers in the same way as there is
between citizens and government.
Senator XENOPHON—Sure. But information asymmetry is
not a good thing, is it, from your point of view?
Mr Wilson—Preferably not—absolutely.
Senator XENOPHON—Good. That means that, if consumers
want to know the source—whether a product has palm oil in it and whether that
palm oil is certified sustainable—what is wrong with letting consumers know
that?
Mr Wilson—There is nothing wrong with it. In fact, I
have supported the very principle that we should have voluntary certification
and that, if people and consumers are motivated by that and they wish to find
out, then they can.[12]
1.20
Some critics of the Bill argued that consumers are able to find out
which products do and don't contain Palm Oil without labelling. This argument
is false.
1.21
Quite simply, unless it is disclosed by the manufacturer, it is
impossible for consumers to know which products do and don't contain Palm Oil.
1.22
Mr Cameron Kerr, Director and CEO of the Taronga Conservation Society
Australia (Taronga Zoo) said:
Senator XENOPHON—At the moment consumers do not know
what has palm oil in it and whether it is certified and sustainable. Is that
right?
Mr Kerr—Unless it is labelled.
Senator XENOPHON—Consumers have some idea about some
products. Is that through individual testing or not?
Ms Gray—If the manufacturer declares it, then that is
what we have used.
Ms Hunt—Some have done, voluntarily.
Senator XENOPHON—If it is not declared how can you
tell, short of testing it?
Ms Gray—They declare when it is not in.
Senator XENOPHON—But if a product does contain it, is
there any way consumers can find out short of independent testing of that
product?
Ms Gray—No.[13]
1.23
And, when asked whether manufacturers could provide this information
online, the Australian Food and Grocery Council argued that was something for
each company to decide.
Senator XENOPHON—But if you are concerned about a
regulatory burden—and I do not accept that, but let us leave that to one
side—what would be wrong with putting on a manufacturer’s website saying, ‘This
product contains palm oil and it happens to be sustainable palm oil’? Given
that your members have signed up to the RSPO and their statement talks about
promoting the growth and use of sustainable oil palm products through credible
global standards and engagement of stakeholders, surely as to sustainable oil
palm products, people knowing whether a product has sustainable palm oil in it
would be entirely consistent with the RSPO of which you are a member?
Mr Mahar—Absolutely. I think that the main issue that
we have is that it is a mandatory requirement.
Ms Carnell—We would encourage our members to do that.
1.24
However, given the reluctance of manufacturers to date, this is
unlikely. Mr Tony Gilding of the Palm Oil Action Group told the Committee:
Mr Gilding—I think it is very fair to say that
voluntary labelling of palm oil is not going to work. It has not worked. There
has been ample opportunity for the industry to label palm oil or vegetable oil
made from palm oil, but they have not done it. I can only conclude that the
companies see some stigma attached to palm oil and they realise that the
consumer would probably be somewhat concerned about the palm oil; therefore, it
is easier for them to label it vegetable oil.[14]
1.25
Indeed, manufacturers know that Australian consumers are increasingly
concerned about the impact Palm Oil production has on the environment and
therefore the reason they are opposed to the truthful labelling of products is
because they know there will be a consumer backlash and because they know that
it is not acceptable.
1.26
Ms Kate Carnell from the Australian Food and Grocery Council argued
that:
Ms Carnell—To be really honest, what a lot of
companies are worried about is their products being used, I suppose, as a focus
for maybe demonstrations and those sorts of things about something different,
like the plight of the orang-utans. Their concern is their products ending up
being the focus for that, which would be incredibly unfair and unreasonable,
but you can fully appreciate that those activist groups that are in that place will
use what they can to lift the profile of their cause, understandably I suppose.
But if a particular product ends up being targeted due to that, that is not
really a fair outcome. Companies are worried about that. It has happened in the
past as we all know. How do we stop that happening? We cannot if we go down
this path.[15]
1.27
Ironically, the Australian Food and Grocery Council are members of the
Roundtable on Sustainable Palm Oil which "promotes the growth and use of
sustainable oil palm products through credible global standards and engagement
of stakeholders"[16]
and yet it does not agree with the mandatory labelling of Palm Oil.
Senator XENOPHON—Basically, is there not a fundamental
inconsistency? If you are a member of the RSPO would you not say that their
members, at the very least, should tell consumers whether or not it is sustainable
palm oil?
Ms Carnell—We will certainly encourage our members to
make that information available and we will also encourage our members to use
sustainable palm oil, which is absolutely what the RSPO suggests we should do.
Senator XENOPHON—It sounds like a cop-out to me.[17]
1.28
Another criticism of the Bill is that food labelling should be limited
to just health and safety concerns. Taking that approach, the National Health
Foundation of Australia told the Committee:
Ms Anderson—From a nutrition perspective and the Heart
Foundation’s perspective, palm oil is having a fairly detrimental impact on our
cardiovascular health. We know that 130 deaths per day are attributed to
cardiovascular disease. That is one person every 11 minutes, so it is certainly
of great concern.
Senator BOYCE—What is so wrong with palm oil?
Ms Anderson—We know that a lot of people have high
cholesterol levels, which is a risk factor for heart disease. In fact, at the
moment it looks like it is around 50 per cent of Australians, so a lot of
deaths would be related to a high intake of saturated fat ... At 50 per cent
saturated fat, palm oil is certainly a contributor to the saturated fat intake.
The Heart Foundation supports the need for consumers to have truthful labelling
and information that really helps them make an informed choice. In the current
situation I think it is pretty difficult for consumers. Seeing ‘animal fat’ or
‘vegetable fat’ does not necessarily help us determine healthy fats versus unhealthy
fats. Vegetable oil could be healthy or it could be an unhealthy sort, so
having a little bit more detail would be quite useful.[18]
1.29
Furthermore,
Senator SIEWERT—Most people have been saying that this
campaign about the labelling and certification of palm oil is not a health
campaign, it is a social and environmental campaign, and we should not be using
labelling for social and environmental campaigns. Your argument, if I am
understanding it correctly, is that, yes, it is a health argument and we should
be labelling because it is a health argument.
Ms Anderson—Yes. The Heart Foundation certainly does
not have any expertise on the environmental impact around palm oil but it knows
the nutritional profile of it, it knows where it is used in the food supply and
it knows that consumers do not know where it used in the food supply because it
is only labelled as vegetable oil. As an organisation that is trying to get
people to lower their saturated fat intake, we think this labelling would be
beneficial.
1.30
It was put to the Committee that consumers would be able to identify
Palm Oil by the nutrition table which would show the amount of saturated fat in
products however this does not clearly provide consumers with adequate
information to make an informed choice.
1.31
Palm Oil can be produced sustainably and this is provided for in the
Bill.
1.32
The international Roundtable on Sustainable Palm Oil (RSPO) has set out
criteria to measure sustainable palm oil production, which include
transparency, compliance with local, national and international ratified laws
and regulations, use of best practices by growers and millers, environmental
responsibility, appropriate work labour laws and development of new plantings.
1.33
It should be noted that whilst the aims of the RSPO are welcome, it does
not appear to have appropriate focus on enforcement of its standards. There is
widespread criticism amongst NGOs gives a veneer of activity and action on Palm
Oil, but in fact little is achieved. That is why the passage of this Bill is
urgently required.
1.34
This Bill encourages the use of certified sustainable palm oil, with
manufacturers meeting the RSPO’s criteria able to label the ingredient as such
to indicate its sustainable origins. In so doing, manufacturers are able to
advise consumers that palm oil is an ingredient of the product, but that it has
been produced with minimal impact to the environment and no impact on wildlife
habitat.
1.35
Ultimately, the intent of the Bill is to provide consumers with accurate
labelling information about Palm Oil to enable them to make an informed choice.
1.36
The reasons given by industry that the labelling of Palm Oil would be
cumbersome is disproved by the fact that Australia's two major supermarkets,
Coles and Woolworths, have successfully sold a number of Palm Oil-free products
in their Housebrand and Private Label products.[19]
1.37
Consumers have a right to know what they are buying and what they are
eating. The strong community support received in response to this Bill and to
this Inquiry proves that the public wants this information to be provided to
them.
1.38
The consequence of manufacturers not being mandatorily required to label
their products which contain Palm Oil is the continued loss of Orang-utan
habitat and in turn, Orang-utans.
Recommendation 1
1.39 That the Bill be passed.
| Senator Nick Xenophon |
Senator Rachel Siewert |
| Independent, South Australia |
Australian Greens, Western Australia |
Navigation: Previous Page | Contents | Next Page