ITEM 11 Future Role of Local Government in Food · PDF fileproposals for the future role of...

Environment & Planning Committee 6 December 2004

Environment & Planning Committee 6/12/04

General Manager Chairperson 1

ITEM 11 Future Role of Local Government in Food Regulation Report of Acting Manager Environment & Health (CP) 22/11/04

PRECIS The New South Wales Food Authority advised Council by letter received 28/10/04 of proposals for the future role of Local Government in Food Regulation. The New South Wales Primary Industry Minister formed a steering committee – “The Food Regulation Partnership” – to drive the consultation and reform process. The Partnership includes representatives of four Local Government Associations and three State Government Departments, including

- Local Government Association of NSW - Shires Association of NSW - Australian Institute of Environmental Health (NSW Division) - Development & Environmental Professionals Association - NSW Food Authority (Chair) - Department of Local Government - NSW Health

The Partnership has published a consultative paper and is conducting a series of consultative meetings throughout New South Wales during November/December. Feedback from all levels of Local Government – Councillors, General Managers and Environmental Health Professionals has been requested. (Submissions have been requested by the 24 December 2004). Note: Further stakeholder consultation of the draft model is proposed during March to May 2005, prior to presentation to the NSW Government in June 2005. The NSW Food Authority emphasise that submissions from each council regarding funding options are preliminary at this first consultation stage. The NSW Food Authority advises that the intent is to discuss, negotiate and refine the various funding options with each council before finalising the Model. Finance Division will be required to be involved in this discussion and negotiation process.



2 General Manager Chairperson

RECOMMENDATION 1 Council express support to the NSW Food Authority for the continuation of

Food Safety Regulation in the City of Wollongong, subject to further consultation with the NSW Food Authority on funding aspects.

2 Wollongong City Council respond to the NSW Food Authority with ‘in

principle’ support for the process subject to further consultation.

BACKGROUND Increasing Rates of Food Borne Illness “The incidence of food borne illness in Australia is increasing while the true number of cases of food poisoning is not known, there may be as many as 2 million or more cases every year in Australia (Commonwealth of Australia, 1998b). These cases have been estimated to cost up to $2 billion in direct medical costs and lost productivity (John Hawkless Consultants 1998). There are also costs associated with lost sales and insurance payouts. The direct cost to health authorities and industry of the 1995 contaminated mettwurst incident in South Australia have conservatively been put at $20 million (Commonwealth of Australia 1997). These figures do not include any measure of the personal costs borne by those falling ill or their families.” – Ref: NSW Health – “A New Approach to Food Safety in New South Wales.” NSW Food Authority This Authority was established on the 5/4/04 in accordance with recommendations contained in the 2002 review by the Hon. John Kerin (the Section 73 Review). The Authority is a State Government agency formed in the merger of Safefood NSW with the Food Regulatory Activities of NSW Health. As Australia’s first completely integrated or “through-chain” food regulation agency, the Authority is responsible for food regulation across the entire food industry, from primary production to point-of-sale. The Section 73 Review also recognised the crucial role that local councils play in food regulation and identified a need for this role to be more definite and secure. The Review recommended that “the NSW Government should explore with local government the implementation of a model which would mandate a local government role,” and further, that outcomes and service delivery expectations should be specified, and funding mechanisms for cost recovery provided. The NSW Government and local government have agreed to work together to address this recommendation.




PROPOSAL Future Direction Defining Roles The NSW food safety system was independently reviewed in 2002 by the Hon. John Kerin (the Section 73 Review)2. The Review identified opportunities for improving the NSW food regulatory system. In relation to local government, the Review recommended that: “The responsibility of local government for food regulation should be clearly defined and appropriately resourced. The NSW Government should explore with local government the implementation of a model which would mandate a local government role:

- Commensurate with the skills, expertise and range of responsibilities of local government Environmental Health Officer;

- Involving activities for which cost recovery would be appropriate; - Funded by a mechanism for cost recovery such as an annual administration

fee; - Assisted by the NSW Food Authority through the provision of tools and/or

training as appropriate; - Coordinated by the NSW Food Authority through mechanisms such as

approved local plans or service level agreements; and - Supported by robust strategic liaison arrangements.” (Recommendation 8)

The NSW government agreed that the NSW Food Authority should take this recommendation forward as a priority. Developing the Model The NSW State and Local Governments have agreed to work together to develop a model which would mandate local government’s role in food regulation. In November 2003 the Food Regulations Partnership proposed general directions for the model by publishing a paper, Toward a strong food regulation partnership. A Directions Paper for State and Local Government. It is now time for detailed discussions about how responsibility for food regulation could be shared between the NSW Food Authority and local government.




Recommendation 8 (above) identifies the main issues which need to be considered. These issues are explored and options for ways forward are identified in the following Chapters:

• Defining Roles – Chapter 2 - What should be the base/minimum role for local government in food

regulation? - How could flexibility be provided for some local councils to do more than

the base/minimum role? - Are there any other factors that should be taken into consideration in

defining future roles? - How should the agreed local government role be mandated?

• Funding – Chapter 3 - What is the cost to local government of providing food regulatory services? - How should local government’s role be funded?

• Support and assistance – Chapter 4 - How could the NSW Food Authority improve current communication and

consultation arrangements with local government? - How could NAFSIS (Notification and Food Safety Information System)

provide a benefit to local government? - What tools and/or training should the NSW Food Authority provide for

local government? - Are there other activities that would support and assist local government?

• Coordination framework – Chapter 5 - What should coordination achieve? - What are the elements of coordination frameworks? - How should the NSW food regulatory system be coordinated? - How could local government be engaged in managing the coordination framework?

• Other issues – Chapter 6

Are there other issues which should be considered in developing the model for local government’s future role in food regulation?

CONSULTATION 1 Council Management and Councillors.

As previously outlined, the Food Regulation Partnership of relevant stakeholder groups have been formed and consulted. On the 28/10/04 the NSW Food Authority forwarded with the letter to Council (GM/Directors/Manager Environment and Health) the following documents:




- NSW Food Regulation Partnership – Issues & Options - Invitation to attend workshops on the Food Regulation proposals - Workshop registration form for attendance. These documents were forwarded via email on the 1 November 2004 to the Lord Mayor and Councillors.

2 Manager Finance has been requested for details for financial implications including

potential income from fee-for-service arrangements and comparison with current and anticipated costs.

NEIGHBOURHOOD COMMITTEES

NHC’s have not been consulted due to the NSW Food Authority scheduled time table for Councils to decide options and make submissions by the 24 December 2004. Note: The NSW Food Authority timetable allows for further review of their draft model between March to May 2005.

PLANNING AND POLICY IMPACT Wollongong City Council has a long history of pursuing discretionary food safety responsibilities under the Food Act 2003 (previously Food Act 1989 and Pure Food Act 1919). Some of the activities/services undertaken by this Council’s Environmental Health Officers in the Environment & Health and DAC Divisions include:

- New food premises approvals and registration - Food Safety Standards – Education, Compliance and Enforcement Inspections - Food Recall investigation - Complaints – dirty food premises, unsafe practices involving food or a food

outlet, foreign objects in food, food poisoning - Industry support programs – Council launched its “Foodsafe™” Program in

2002 providing food businesses with a structured food safety quality assurance program.

- Emergency response – floods and fire, etc Council’s Corporate Plan 2004-2008 sets down the following key objectives and performance indicators:




Key Objectives Performance Indicators 1. Protect environmental health through

the development of best practice principles and enforcement of legislative requirements

1.1 Percentage of health complaints actioned within 14 days.

1.2 Percentage of food premises classified and inspected.

1.3 Percentage of cooling towers inspected in accordance with legislative standards

2. Enhance environmental health through health promotion programs and initiative.

2.1 Percentage of premises accredited under Council’s Foodsafe program.

2.2 Percentage of food handlers trained under Council’s Foodsafe program.

2.3 Number of health promotion initiatives.

Comment 1 In 2003/2004 Council’s Food Business Register totalled 919 and Council’s

Environmental Health Officers conducted 976 food safety inspections from the 1/07/03 to the 30/06/04.

2 To date there are 79 premises participating in Council’s Foodsafe Program involving 904 food handlers.

Mandatory -v- Discretionary Role in Food Regulation “How should the agreed local government role be mandated?” The Section 73 Review recommended that local government’s role should be mandated. This would ensure certainty about responsibilities. A mandated role could be achieved by a number of mechanisms. Including;

- Service agreements between individual councils and the NSW Food Authority; - A Memorandum of Understanding between peak representative bodies and the

NSW Authority; or - Legislative obligations.

If a legislative approach is taken, this would be most appropriately addressed through amendment to the Food Act 2003 rather than by amendment to the Local Government Act 1993.




ECOLOGICAL SUSTAINABILITY

This heading has been considered but is not relevant.

FINANCIAL IMPLICATIONS

Current Position and Potential Income There are 919 food businesses registered on Wollongong City Council’s food premises register with Council receiving approximately $119,470 income from annual inspections. Current Fee for Service Note: Prior to the Local Government Act 1993, a food premises licensing system operated with an annual licence fee applicable as set down in Council’s Fees and Charges. Section 608 of the Local Government Act 1993 provides for Council to charge fees to food businesses for inspection of food premises on a fee-for-service basis. These fees are set out in Council’s Fees and Charges document which is reviewed annually. Council Procedure to Charge Food Businesses a Fee for Service Basis 1 Food businesses register with Council’s Environment and Health Division. 2 Food businesses are classified according to “Food Safety Risk Analysis” criteria

and charged as follows: Low Risk - $59.00 Medium Risk - $136.50 High Risk - $236.00 3 Council’s Environment Health Officer inspects the premises in the area (wards) of

responsibility and issues a Food Business Inspection Report. A sundry debtor account for the inspection fee is posted.

4 Debt recovery is undertaken by Council’s Finance Division. 5 Re-inspection of food businesses where critical and other food safety matters are

identified, incurs an $88.00 re-inspect fee and/or “notice to rectify” and/or legal action under the Food Act 2003.




Future Funding The NSW Food Authority emphasise that submissions from each council regarding funding options are preliminary at this first consultation stage. The NSW Food Authority advises that the intent is to discuss, negotiate and refine the various funding options with each council before finalising the Model. Finance Division will be required to be involved in this discussion and negotiation process. The NSW Food Authority in its attached document addresses the question of funding as follows:- “Funding – simply defining local government’s role is not enough – local government must be adequately resourced. Lack of resources constrains the capacity of local governments to carry out the tasks required of them, including regulatory functions. Funding mechanisms for the future role of local government must be addressed. “How should local government’s role be funded? Funding Principles The principles which should apply to the funding of regulatory activities have been considered by several major reviews in recent years, including a Commonwealth Inquiry on cost recovery (Productivity Commission, 2002) and, in NSW, the Food Safety Funding Review undertaken by the Hon. John Kerin (2001). These reviews sought to identify the circumstances in which specified regulatory activities should be funded by cost recovery, either from the regulated industry or from consumers of the regulated products, or directly by Government (i.e. through taxes or rates).” Comment The NSW Food Authority has put forward a possible funding model for local government’s role in food regulation based on fee-for-service recovery from industry, including annual administration fees, service fees and/or fines. State Budget funding is highly unlikely to be provided for routine food regulatory activities as proposed in this model. Details of this proposal require further investigation before final submission, although the current fee-for-service arrangement could be continued.




OPTIONS 1 Council resolve to give support for these important proposed reforms in the

“future role of local government in food regulation” with relevant Officers within the Environment and Health Division continuing further consultation/negotiation with the NSW Food Authority.

2 Council resolve to not support the proposed reforms in the “future role of local

government in food regulation” and relegate to the NSW Food Authority to undertake all food safety matters. This option is not recommended as there is a likelihood of an increase in the risk of food borne illness and thereby compromising the current food safety compliance, enforcement and education role currently undertaken by Council.

3 Do nothing – this option is not recommended. Council’s longstanding

involvement in food safety matters needs to be progressively adopted to the NSW Food Authority’s directions to ensure public health and safety.




CONCLUSION The Food Safety Standards - compliance, enforcement and education inspection program has been a long standing, important role undertaken by Council through the Environment & Health Division for the protection of public health. The eating patterns of many Australians are changing and consumers expect food to be safe. The Food Industry is under pressure to demonstrate (introduction of food safety schemes based on HACCP [Hazard Analysis and Critical Control Point] principles) that it is producing safe food to maintain both consumer confidence and market share. Council should continue to participate in food safety surveillance and support the NSW Food Authority to continue this consumer confidence.

ATTACHMENTS

1 Council’s proposed submission document to the NSW Food Authority as prepared by the Environment & Health Division.

2 NSW Food Regulation Partnership – Issues and Options document.




ATTACHMENT 1




ATTACHMENT 2

ITEM 11 Future Role of Local Government in Food · PDF fileproposals for the future role of...

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