On 1 August 2024, the Ministry for Regulation released the Terms of Reference for the Agricultural and Horticultural Products Regulatory Review. This will be the Ministry’s second sector review since its establishment, with the Early Childhood Education sector review currently at the engagement stage.

What will the review look at?

The Review will assess the approval path for agricultural and horticultural products in New Zealand under the Agricultural Compounds and Veterinary Medicines (ACVM) and Hazardous Substances and New Organisms (HSNO) regulatory systems. The Review will look at:

1. Regulatory design, including how the systems have been setup, and any legislation, notices, or other rules that apply;
2. Regulatory practice, including the practices of the agencies that carry out the range of functions within the regulatory system as it relates to product approval; and 
3. The interface between the regulatory systems, including any overlaps or duplication between them. 

In terms of specific subject matter, the Review has a broad mandate to consider product approval through the ACVM and HSNO. This includes the assessment, approval, and reassessment process for products, and the quantity and quality of information that applicants are required to provide. 

Some specific areas are excluded from the Review, including the regulation of gene technology, and any products regulated only under the HSNO and not the ACVM. The Terms of Reference contains a full list of the matters the Review will consider, and those that are excluded.

Review principles 

In assessing the regulatory systems, the Review will seek to understand:

• the relevant public interest matters and the basis for government intervention;
• the costs and benefits of the regulation (and the distribution of those across different parties); and
• how well the regulations are working to achieve their intended purpose, including when benchmarked against comparable international regulators.

These criteria are similar to those used in the Early Childhood Education sector review, which began in early June. 

Responsibility and timing of the review

Collectively, the Ministers for Regulation, Food Safety and the Environment will have joint oversight and decision-making responsibility for the Review. The Review itself will be led by the Ministry for Regulation. At its conclusion, the Review will deliver a report to the joint Ministers and a paper for Cabinet consideration of the recommendations. 

The Review aims to have its initial report completed by late 2024, and the cabinet paper ready for consideration in the first quarter of 2025.

Engagement

The Minister for Regulation believes that this Review is an opportunity to ensure New Zealand farmers, growers, and businesses can access the innovative products they need to remain competitive. 

To understand industry needs, initial engagement with industry representative groups and businesses who navigate the regulatory systems is underway. The Ministry anticipates that this stage of engagement will close on 8 September 2024. 

The Terms of Reference also lays plans for more targeted engagement, including with the establishment of a Sector Reference Group to test the Review’s findings, analysis and options. The Ministry is inviting nominations from the following organisations to form this group:

•    Horticulture New Zealand
•    New Zealand Winegrowers
•    Foundation for Arable Research
•    Dairy Companies Association of New Zealand
•    Animal and Plant Health New Zealand
•    Veterinary Council of New Zealand; and 
•    Federated Farmers. 

The Review will also conduct targeted engagement with stakeholders who can bring an understanding of specific areas of speciality, such as the impacts on Māori, public health, and environmental considerations.

How to have your say 

The Ministry is inviting written submissions from businesses, farmers, and other interested organisations and individuals to give feedback. Any business impacted by the ACVM and HSNO should take this chance to engage with the Review and share their experiences navigating these systems.

In making submissions, the Review is asking submitters to specifically consider the Terms of Reference and the following broad questions:

1. Are the regulations working?
2. What are the biggest issues with the current approval path? 
3. What are some of the causes or contributors to these issues?
4. How would you solve them?
5. What evidence do you have that you could supply or point to us?
6. What are the underpinning market failures and the basis for government intervention?
7. What are the costs and benefits of regulation, and the distribution of those across different parties?

Given the wide scope of the Terms of Reference, we predict that the Review will receive a large response from industry representatives and experts. Indeed, the Early Childhood Education sector review received such an overwhelming response in their call for feedback that the engagement period has been extended for two weeks, now closing on 31 August.  

Want to have your say?

If your business is in any way involved or affected by the ACVM and HSNO regulatory systems, we recommend getting in front of the Review with your feedback.  

One of our experts below would be happy to assist you with making a submission to the Review. 

Special thanks to Alice Mander for her assistance in writing this article.