Policy & LegislationGovernment Legislation

H1.2: Examines the nature and extent of the Australian Food Industry.

Syllabus Link:

Syllabus Link:

What is Legislation?● A law passed by Government that describes what is legal in specific

situations.

● These are laws passed by Governments at Local, State and Federal levels that specify what can and cannot be done in specific situations.

● Can be amended (changed) or repealed (cancelled) but the law must be

put before Parliament.

● Lengthy process.

Who Makes Food Legislation?● Policies and Legislation are crucial in the AFI to ensure that food is

acceptable for human consumption and that Australia’s reputation for

producing safe food for export remains intact.

● Food Legislation is created by Aust. regulatory agencies such as; Codex

Alimentarius and other international food agencies such as; the Food

and Agriculture Organisation of the United Nations (FAO), the World Health Organization (WHO) and the World Trade Organization (WTO).

What is Codex?Codex is a body established by the FAO and WHO. It coordinates creates and

enforces international food codes for over 160 countries.

Federal Food Laws ● Federal Food Laws are those that are created and enforced throughout a

country.

1. Trade Practices Act 1974 (Commonwealth)

● The Trade Practices Act (1974) aims to promote competition to ensure fair trading and protect the consumer.

● This is a federal Act that applies to all business activities and corporations across Australia.

● Each state has legislation that mirrors The Trade Practices Act. For instance, in NSW the Fair Trading Act 1987 complements the Trade Practices Act.

● The Trade Practices Act (1974) addresses FOUR broad areas;

- Restrictive Trade Practices: a practice that hinders competition in some way.

Restrictive Trade Practice

Example in the AFI

Misuse of Market Power

A company with a large market share tries to damage or eliminate its competitors by making incorrect statements about the competitor’s product.

Exclusive Dealings A company that supplies fresh seafood insists that a restaurant purchases their stock only. Such ‘exclusive dealing’ is illegal as it reduces competition.

Resale Price Maintenance

The supplier of fresh eggs tells the local corner shop that they must sell their eggs at $3.00 a dozen. A supplier can suggest a recommended retail price, but a retailer can sell the producer at whatever price ir chooses.

Price Discrimination

A bakery sells a loaf of bread to a takeaway shop at a certain price and then sells it for a higher price to a cafe. The supplier must sell produce at the same price to any company.

- Unreasonable Conduct: selling a product that the supplier knows does not meet food standards (it might be out of date or not meet labelling requirements).

- Consumer Protection: unfair practices such as false or misleading conduct, offering gifts or prizes without intending to supply them, bait advertising and referral selling. This also covers product safety where supplied goods must meet certain safety standards.

- Liability of Manufacturers and Importers to pay compensation if goods are defective: If a customer contracts food poisoning from a meal in a restaurant, the restaurant owner is obliged to pay the doctor’s bill.

READ CASE STUDY: UNCLE TOBY’S and JUST SQUEEZED JUICES

Federal Food Laws 2. Food Standards Australia and New Zealand Act (1991)

FSANZ was established under this legislation to; ● Ensures consumers are confident in the quality and safety of food

produced here or imported from overseas.● Provide information to consumers about food so they can make

informed food choices.● Establish common rules to promote consistency between domestic and

international trade.

Federal Food Laws 3. Gene Technology Act (2000)

● This Act ensures public health and safety by identifying potential risks associated with genetically modified organisms.

● This includes genetically modified animals, fruits, vegetables and grains.

4. Dairy Produce Act (1986)

● This Act covers both the marketing and export of dairy produce.

5. Export Control Act (1982)

● This Act covers federal regulations regarding the export of food items.

Federal Food Laws 6. Imported Food Control Act (1992)

● This Act ensures that the food imported into Australia meets Australian food standards. It lists specific requirements that all imported food must items must meet, including the areas of packaging, labelling and the use of additives and preservatives.

7. Fisheries Management Act (1991)

● This Act and the Australian Fisheries Management Authority aim to prevent the exploitation of fisheries resources and assist in maintaining ecologically sustainable development.

State Food Laws ● The State Government also passes legislation that affects the food

industry. Some legislation aims to protect the environment while other

laws concentrate on correct food safety and handling.

1. Protection of the Environment Operations Act (1997)

● This Act applies to the noise produced during food processing. Premises that produce undue or offensive noise must use noise-control equipment.

2. Fertilisers Act (1985)

● This Act regulates the sale of soil-improving agents to ensure that heavy metals and soil contaminants due not infiltrate the foods consumed by humans. Includes products that are exported.

State Food Laws 3. Fisheries Management Act (1994)

● This Act seeks to protect and develop fishery resources in NSW for the benefit of present and future generations. It protects threatened fish species and promote ecologically sustainable development.

4. Trade Measurement Act (1989)

● Misleading a customer about the measurement given or incorrectly calculating the cost is an offence. It is also an offence to supply less than the quantity specified in a sale offer. For instance; supplying the customer with 450 grams of fruit when they have paid for 500 grams is an offence. However, it is acceptable to supply 520 grams but charge for only 500 grams. Manufacturers must also use accurate measuring devices and check the weights of their products. For example SPC Ardmona uses electronic weighing systems that reject underweight packets.

State Food Laws 5. Fair Trading Act (1987)

6. Work Health & Safety Act (2011) OR Occupational Health & Safety Act (2000)

● This Act aims to protect the health, safety and welfare of employees in the workplace, mainly by reducing work-related accidents and eliminating risks. Employers are required to follow a code of practice to ensure they comply with OH&S requirements. For example; providing appropriate training.

State Food Laws 7. Food Act 2003 (NSW)

● The main aims of the Food Act are;- Ensure food for sale is both safe and suitable for human consumption. - Prevent misleading conduct in connection with the sale of food. - Provide for the application in NSW of the Food Standards Code.● The law states that food intended to be sold must not be handled in a manner that

could result in the food being unsafe. Imprisonment for 2 years or $550,000.● The law states that food must not be sold if a person knows it is unsafe.

Imprisonment for 2 years or $550,000.● The law states that an individual must not falsely describe food intended for sale if

they know the consumer of that food will rely on that description and will or is likely to suffer physical harm as a result of the false description. For example; biscuits labelled as ‘gluten free’ but contain wheat.

CASE STUDY: ‘NAME AND SHAME CAMPAIGN’

● The NSW Food Authority is able to name food outlets on its website that

have failed to meet basic hygiene and food regulations standards.

● It is hoped that by publicly shaming businesses, all food producers will

take food hygiene and safety more seriously.

● It also helps consumers choose appropriate places to eat and shop.

Those listed on the site will lose customers very quickly.

State Food Laws State Food Inspectors

● Under the Food Act (2003), the NSW Food Authority aims to ensure food

safety by conducting audits of licensed businesses.

● During an audit, the audit officer checks that there is a food safety

program. The auditor also checks that the business keeps records of all

food products it handles and procedures are documented. Checks are

also made to ensure that there are systems in place for hygiene, chemical

storage, pest control, training, product recalls and customer complaint

handling.

● Many local governments are now working with the NSW Food Authority

to ensure food safety and hygiene. At the local government level, each

suburb, district and council is responsible for;

- Appointing an Environmental Health Officer (EHO) who specialises in

food surveillance.

- Inspecting food and food premises.

- Building requirements, such as the construction and alteration of food

premises.

Local State Laws

EHO’s are given responsibility under the Food Act 2003 to do routine

inspections of all food premises in their local area. They generally;

● Investigate complaints about food premises, ensuring that the

preparation of food is hygienic. Food samples may be collected and

tested.

● Educating those in the industry about food safety and hygiene.

● Inspecting a registered business at any time.

● Checking the supplier of goods.

● Issuing improvement notices and orders.

Local State Laws Appointment of Environmental Health Officers

Codes for Inspection of Food and Food Premises

Local State Laws

● Local councils are responsible for developing a code to follow when inspecting premises. The code covers areas such as how often an inspection is done as well as states which premises are exempt from inspection.

● EHO’s look at the food, food storage facilities and equipment used in food preparation. They investigate the state of the building and overall cleanliness and hygiene.

● Codes vary slightly between councils but are generally established in consultation with experts in the field (manufacturers, builders, architects etc).

● The aim of the code is to achieve high hygiene standards during the production and sale of a food item. Codes outline and recommend;

- Suitable materials for walls, floors, ceilings, windows, refrigerators, counters etc.

- Guidelines for the installation of refrigerators, cupboards etc.- Guidelines for washing and other facilities including staff toilets,

ventilation, window displays etc.

Codes for the Construction and Alteration of Food Premises