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Regulatory Reform—Protection from Compliance Cost Increases

Wednesday 27 October 2010 Hansard source (external site)

Calder8. Dr CAM CALDER (National) Link to this
to the Minister for the Environment

What actions has the Government taken to avoid unnecessary cost increases for New Zealand householders from excessive regulation?

SmithHon Dr NICK SMITH (Minister for the Environment) Link to this

Regulations passed by the previous Government would from 1 January prohibit the sale of over 1,000 common household products sold in cardboard or refill packs, even though the toxicity of those is little more than table salt or lemon juice. These excessive regulations would have added over $20 million to family grocery bills and over 30 million plastic containers to the waste stream. This Government campaigned on removing such unnecessary red tape, and today it has repealed them.

CalderDr Cam Calder Link to this

What products would have been banned from sale, and does any other country require such regulation for similar household products?

SmithHon Dr NICK SMITH Link to this

Products that would have been banned from our supermarket shelves include Surf and Persil. Spray n’ Wipe would not be allowed on our supermarket shelves, let alone the deadly Palmolive dishwashing liquid. We also would have had to get rid of—oh, here is the man who is responsible.

MallardHon Trevor Mallard Link to this

I raise a point of order, Mr Speaker. I can remember some time, it might have been last year, but certainly during your reign on the throne, you prevented the Greens—I think Sue Kedgley—from doing exactly this by using props. [ Interruption]

SmithMr SPEAKER Link to this

The Speaker is considering a genuine point of order. I certainly did not allow a member to table such things and I did not allow other members to produce such things, other than the speaking member. But I do not recollect having ruled that a member with the call could not use props to support what he or she was saying. If I have, I will apologise for that. I will check back on my record to avoid inconsistency, and I apologise if I got that wrong. The member has answered considerably; he should not go on much further.

SmithHon Dr NICK SMITH Link to this

I think it is very appropriate. The other product that has been banned is the good old Toilet Duck. These regulations exist in no other developed country, and are particularly significant for relations with Australia, in that prohibiting these products makes New Zealand uncompetitive with Australia.

HideHon Rodney Hide Link to this

How has the ACT Party and the regulatory reform work led by me helped identify and reverse these nanny State regulations inherited from the previous Labour Government?

SmithHon Dr NICK SMITH Link to this

The Minister who asked the question has initiated a comprehensive programme of regulatory reform, and when the Grocery Marketers Association raised these issues with the Minister of Regulatory Reform he insisted on a review. That review found that these regulations were totally unnecessary and were the sorts of nanny State regulations that caused the previous Government to be thrown out.

CalderDr Cam Calder Link to this

Has the Government reversed all the regulations designed to better protect children against harmful substances?

SmithHon Dr NICK SMITH Link to this

No. There are some stronger cleaning products like some bleaches and concentrated dishwashing powders that do pose a threat that justifies child-resistant packaging, such as Janola. I hear members opposite arguing that that is somehow nanny State. I will tell members the difference. The difference is that we are practical on this side of the House. We apply some common sense rather than banning these assorted products that would not have been allowed on New Zealand supermarket shelves if Labour had stayed in Government.

HideHon Rodney Hide Link to this

Has the Minister received any advice on the job impacts of these regulations, given that we would be the only country in the world requiring child-resistant packaging for products like Surf and Persil?

SmithHon Dr NICK SMITH Link to this

Yes, I have. It would put New Zealand out on a limb and at serious disadvantage. I am advised that the Unilever factory in Petone would be put out of business by these regulations, including the 330 staff who are in the previous Minister for the Environment’s own electorate. This is a classic example of poor regulations costing New Zealand householders and costing jobs, and it is one of the reasons why this Government has a comprehensive programme of regulatory reform.

SmithMr SPEAKER Link to this

Before I call the honourable member for the next question, I ask the Minister to please remove the props, now that he has completed that answer.

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