9-04
15 December 2004
INITIAL ASSESSMENT REPORT
PROPOSAL P272
LABELLING REQUIREMENTS FOR FOOD FOR CATERING PURPOSES & RETAIL SALE
DEADLINE FOR PUBLIC SUBMISSIONS: 6pm (Canberra time) 23 February 2005
SUBMISSIONS RECEIVED AFTER THIS DEADLINE
WILL NOT BE CONSIDERED
(See ‘Invitation for Public Submissions’ for details)
FOOD STANDARDS AUSTRALIA NEW ZEALAND (FSANZ)
FSANZ’s role is to protect the health and safety of people in Australia and New Zealand through the maintenance of a safe food supply. FSANZ is a partnership between ten Governments: the Commonwealth; Australian States and Territories; and New Zealand. It is a statutory authority under Commonwealth law and is an independent, expert body.
FSANZ is responsible for developing, varying and reviewing standards and for developing codes of conduct with industry for food available in Australia and New Zealand covering labelling, composition and contaminants. In Australia, FSANZ also develops food standards for food safety, maximum residue limits, primary production and processing and a range of other functions including the coordination of national food surveillance and recall systems, conducting research and assessing policies about imported food.
The FSANZ Board approves new standards or variations to food standards in accordance with policy guidelines set by the Australia and New Zealand Food Regulation Ministerial Council (Ministerial Council) made up of Commonwealth, State and Territory and New Zealand Health Ministers as lead Ministers, with representation from other portfolios. Approved standards are then notified to the Ministerial Council. The Ministerial Council may then request that FSANZ review a proposed or existing standard. If the Ministerial Council does not request that FSANZ review the draft standard, or amends a draft standard, the standard is adopted by reference under the food laws of the Commonwealth, States, Territories and New Zealand. The Ministerial Council can, independently of a notification from FSANZ, request that FSANZ review a standard.
The process for amending the Australia New Zealand Food Standards Code is prescribed in the Food Standards Australia New Zealand Act 1991 (FSANZ Act). The diagram below represents the different stages in the process including when periods of public consultation occur. This process varies for matters that are urgent or minor in significance or complexity.
INVITATION FOR PUBLIC SUBMISSIONS
FSANZ has prepared an Initial Assessment Report of Proposal P272, which includes the identification and discussion of the key issues.
FSANZ invites public comment on this Initial Assessment Report for the purpose of preparing an amendment to the Australia New Zealand Food Standards Code for approval by the FSANZ Board.
Written submissions are invited from interested individuals and organisations to assist FSANZ in preparing the Draft Assessment for this application/proposal. Submissions should, where possible, address the objectives of FSANZ as set out in section 10 of the Food Standards Australia New Zealand Act 1991 (FSANZ Act). Information providing details of potential costs and benefits of the proposed change to the Australia New Zealand Food Standards Code from stakeholders is highly desirable. Claims made in submissions should be supported wherever possible by referencing or including relevant studies, research findings, trials, surveys etc. Technical information should be in sufficient detail to allow independent scientific assessment.
The processes of FSANZ are open to public scrutiny, and any submissions received will ordinarily be placed on the public register of FSANZ and made available for inspection. If you wish any information contained in a submission to remain confidential to FSANZ, you should clearly identify the sensitive information and provide justification for treating it as commercial-in-confidence. Section 39 of the FSANZ Act requires FSANZ to treat in-confidence, trade secrets relating to food and any other information relating to food, the commercial value of which would be, or could reasonably be expected to be, destroyed or diminished by disclosure.
Submissions must be made in writing and should clearly be marked with the word ‘Submission’ and quote the correct project number and name. Submissions may be sent to one of the following addresses:
Food Standards Australia New Zealand Food Standards Australia New Zealand
PO Box 7186 PO Box 10559
Canberra BC ACT 2610 The Terrace WELLINGTON 6036
AUSTRALIA NEW ZEALAND
Tel (02) 6271 2222 Tel (04) 473 9942
www.foodstandards.gov.au www.foodstandards.govt.nz
Submissions need to be received by FSANZ by 6pm (Canberra time) 23 February 2005.
Submissions received after this date will not be considered, unless agreement for an extension has been given prior to this closing date. Agreement to an extension of time will only be given if extraordinary circumstances warrant an extension to the submission period. Any agreed extension will be notified on the FSANZ Website and will apply to all submitters.
While FSANZ accepts submissions in hard copy to our offices, it is more convenient and quicker to receive submissions electronically through the FSANZ website using the Standards Development tab and then through Documents for Public Comment.
Questions relating to making submissions or the application process can be directed to the Standards Management Officer at the above address or by emailing .
Assessment reports are available for viewing and downloading from the FSANZ website or alternatively paper copies of reports can be requested from FSANZ’s Information Officer at either of the above addresses or by emailing including other general enquiries and requests for information.
CONTENTS
Executive Summary 7
1. Introduction 9
2. Regulatory Problem 9
2.1 Food for retail sale and food for catering purposes 10
2.2 Current requirements in clause 2 in Standard 1.2.1 10
2.3 Application of clause 2 in Standard 1.2.1 11
3. Objective 12
4. Background 12
4.1 Development of Standard 1.2.1 12
4.2 Workplan Classification 13
5. Relevant Issues 13
5.1 Labelling 13
6. Regulatory Options 14
7. Impact Analysis 14
8. Consultation 15
8.1 External Advisory Groups 15
8.2 Invitation for Public Submissions 15
9. World Trade Organization (WTO) 16
10. Conclusion and Recommendation 16
Attachment 1 - Food for retail sale 18
1. Background 18
2. Application of Clause 2 18
3. Conclusion and recommendation 39
Attachment 2 - FOOD FOR CATERING PURPOSES 40
1. Background 40
2. Application of Clause 2 40
3. Conclusion and Recommendation 52
Attachment 3 - PACKAGED MEALS PROVIDED BY DELIVERED MEALS ORGANISATIONS (DMOs) 53
1. Background 53
2. Regulatory Problem 55
3. Relevant Issues 56
4. Regulatory Options 60
5. Impact Analysis 61
6. Conclusion and Recommendation 69
7. References 69
Attachment 4 - Labelling of meals provided in hospitals and similar institutions 70
1. Background 70
2. Regulatory Problem 72
3. Relevant Issues 72
4. Regulatory Options 75
5. Impact Analysis 76
6. Conclusion and Recommendation 82
Attachment 5 - STANDARD 1.2.1 84
Attachment 6 - INTERNATIONAL REGULATIONS 87
Attachment 7 - Implementation and Enforcement Advisory Group 92
Executive Summary
The purpose of Proposal P272 is to review and amend where appropriate, certain labelling requirements in clause 2 in Standard 1.2.1 of the Australia New Zealand Food Standards Code (the Code). During the transition to the Code, Food Standards Australia New Zealand (FSANZ) has been made aware of a number of issues related to the interpretation and application of certain labelling requirements as they apply to food for retail sale and food for catering purposes. Some of these issues are relatively minor in nature. However, many are significantly more complex and have arisen either as a consequence of the structure of clause 2 in Standard 1.2.1 or because of unintended gaps in the application of the labelling requirements.
The issues considered in this Proposal in relation to clause 2 in Standard 1.2.1, which are discussed in more detail in separate Attachments to this report, fall into four broad categories:
· the labelling of food for retail sale including the limitations of the term ‘food for retail sale’ within the context of clause 2; the application of the exemptions in subclause 2(1); and the information requirements in subclause 2(2) which apply when food for retail sale is exempt from labelling (Attachment 1);
· the labelling of food for catering purposes including the current definition in clause 1; the requirement for food for catering purposes to bear a label containing the information prescribed in the Code; the appropriateness of the exemptions in subclause 2(1); and the appropriateness of the information requirements in subclause 2(2) (Attachment 2);
· the labelling requirements for packaged meals provided by delivered meals organisations (DMOs) (Attachment 3); and
· the labelling requirements for meals provided in hospitals and similar institutions (Attachment 4).
These latter two issues, although technically falling within the scope of a review of requirements for food for retail sale, are generally unique to that industry sector and as such are considered separately in this Proposal. FSANZ has been approached on a number of occasions by DMOs seeking clarification of their labelling obligations in respect of Standard 1.2.1 and for this reason FSANZ considers it necessary to keep these two matters separate to facilitate feedback on the regulatory problem and the possible options.
The primary objective of the review is to remove identified barriers to the efficient operation of clause 2 while at the same time maintaining a high level of public health and safety protection and without compromising the ability of consumers to make informed choices. A secondary objective is to provide greater certainty to industry, government and consumers regarding the labelling requirements in clause 2 in Standard 1.2.1. In this review it is FSANZ’s intention to address issues of interpretation and application and not to re-open matters of broad regulatory policy considered during the development of the Standard.
The Initial Assessment Report raises a number of questions in relation to the various regulatory options outlined in separate Attachments to the report. FSANZ encourages your feedback on these questions and the related regulatory options.
Generally, the options are to either:
1. Maintain the status quo and retain the current requirements in clause 2 in Standard 1.2.1; or
2. Amend the requirements to provide greater certainty for the manufacturers and suppliers of food for retail sale and food for catering purposes and to better reflect the circumstances in which these foods are provided.
In relation to the labelling of packaged, delivered meals provided by DMOs (Attachment 3) and the labelling of meals provided in hospitals and similar institutions (Attachment 4) there are several possible regulatory options, each of which are considered in more detail in each of the relevant Attachments to the report.
The progress and direction of Proposal P272 will be guided by information received through the consultation process, where advice will be sought from External Advisory Groups (including the already established Implementation and Enforcement Advisory Group (IEAG)) and through targeted and standard public consultation mechanisms. Public submissions are now invited in response to the matters raised in this Initial Assessment Report.
1. Introduction
Proposal P272 has been prepared by FSANZ to address a number of issues arising from the implementation of certain labelling requirements for food for retail sale and food for catering purposes in the Code. During the transition to the Code, the interpretation and application of certain aspects of clause 2 of Standard 1.2.1 – Application of labelling and other information requirements, were identified by industry and enforcement officers as problematic.
There are several issues identified in this Proposal requiring further consideration and possible amendment in relation to clause 2 in Standard 1.2.1. These issues, considered in detail in separate Attachments to this Proposal, fall into four broad categories:
· the labelling of food for retail sale including the limitations of the term ‘food for retail sale’ within the context of clause 2; the application of the exemptions in subclause 2(1); and the information requirements in subclause 2(2) which apply when food for retail sale is exempt from labelling (Attachment 1);
· the labelling of food for catering purposes including the current definition in clause 1; the requirement for food for catering purposes to bear a label containing the information prescribed in the Code; the appropriateness of the exemptions in subclause 2(1); and the appropriateness of the information requirements in subclause 2(2) (Attachment 2);
· the labelling requirements for packaged meals provided by delivered meals organisations (DMOs) (Attachment 3); and
· the labelling requirements for meals provided in hospitals and similar institutions (Attachment 4).
Although these latter two issues technically fall within the scope of a review of the labelling requirements for food for retail sale, the matters raised in relation to these two issues are generally unique to that industry sector and as such are considered separately in this Proposal.
In preparing this Proposal, it is FSANZ’s intention to address issues of interpretation and application and not to re-open matters of broad regulatory policy considered during the development of the Standard.
2. Regulatory Problem
Standard 1.2.1 was developed as part of a general review of the former Australian Food Standards Code to provide a common food standards system for Australia and New Zealand. As with other reviews of this kind, a number of issues have emerged during the implementation of the Code, which were not foreseen during the development of the Standard. In particular, placing food for retail sale and food for catering purposes together in clause 2 in Standard 1.2.1 has resulted in a number of unintended difficulties in the application of the current requirements.
2.1 Food for retail sale and food for catering purposes
Food for retail sale means a food that is sold to the public and therefore would be considered to be an end product. Food for catering purposes however, refers to foods for use in restaurants, canteens, schools, caterers or self catering institutions, where food is offered for immediate consumption. At this point, the food is likely to be subject to further processing before being made available for retail sale. An example of food for catering purposes is pasta that is sold to a restaurant to be used in the preparation of a meal. However, when the meal is sold to the consumer it is considered to be food for retail sale.
2.2 Current requirements in clause 2 in Standard 1.2.1
Food for retail sale and food for catering purposes, unless otherwise exempt, is required to bear a label setting out all the information prescribed in the Code. This means that food for retail sale or food for catering purposes unless exempt, must bear a label, which includes the following prescribed information: