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2008-2009
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
FOOD STANDARDS AMENDMENT
(TRUTH IN LABELLING - PALM OIL) BILL 2009
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator N Xenophon, Senator B Brown and Senator
B Joyce)
FOOD STANDARDS AMENDMENT
(TRUTH IN LABELLING - PALM OIL) BILL 2009
1. Background
The purpose of this Bill is to provide for the accurate labelling of
palm oil in food.
Palm oil is used in approximately 40 percent of food products, however
manufacturers are currently able to label palm oil as "vegetable oil",
even though it originates from a fruit and is high in saturated fats,
unlike vegetable oil.
Furthermore, the current production of palm oil, which predominantly
occurs in Malaysia and Indonesia, results in extensive deforestation
and, as a consequence, the removal of wildlife habitat, namely
affecting the endangered Orang-utan.
It's estimated that an area equivalent to 300 soccer fields of forest
is cut down each hour for oil palm plantations, resulting in the
deaths of more than 1000 Orang-utans a year.
This Bill is designed to give consumers accurate information to make
an informed choice about whether they want to purchase or consume a
product, whether for health or conservation reasons.
Palm oil can be produced sustainably, and the international Roundtable
on Sustainable Palm Oil (RSPO) has set out criteria to measure
sustainable palm oil production.
These include transparency, compliance with local, national and
international ratified laws and regulations, use of best practices by
growers and millers, environmental responsibility, appropriate work
labour laws and development of new plantings.
The RSPO was formed in 2004 with the objective of promoting the growth
and use of sustainable oil palm products through credible global
standards and engagement of stakeholders. It is a not-for-profit
association that includes stakeholders from seven sectors of the palm
oil industry - oil palm producers, palm oil processors or traders,
consumer goods manufacturers, retailers, banks and investors,
environmental or nature conservation NGOs and social or developmental
NGOs.
This Bill encourages the use of certified sustainable palm oil, with
manufacturers meeting the criteria set out by the RSPO able to label
the ingredient as such to indicate its sustainable origins, in so
doing advising consumers that palm oil is an ingredient of the product
however it has been produced with minimal impact to the environment
and no impact on wildlife habitat.
Ultimately, the intent of the Bill is to provide consumers with
accurate labelling information about palm oil to enable them to make
an informed choice.
The Bill provides 6 months for the Authority (FSANZ) to develop and
approve labelling standards for producers, manufacturers and
distributors of foods containing palm oil.
The Bill also provides that any changes to the regulations by FSANZ
must uphold the intent of the Bill, which is for palm oil to be
accurately labelled on all food products.
2. Short Title
This clause is a formal provision and specifies the short title of
Bill, once enacted, may be cited as the Food Standards Amendment
(Truth in Labelling - Palm Oil) Act 2009.
3. Commencement
This clause provides for the commencement of sections 1, 2 and 3 of
the Act, the day on which this Act receives the Royal Assent, and for
Schedule 1 to commence 28 days after the day on which the Act receives
Royal Assent. The Authority (FSANZ) will have 6 months from the day
after which the Act receives Royal Assent to develop and approve
labelling standards for producers, manufacturers and distributors of
foods containing palm oil.
4. Schedule
This clause states that each Act specified within a Schedule under
this Bill would be amended or repealed as set out by the provisions of
this Bill, and any other item in a Schedule to this Bill has effect
according to its terms.
5. Purpose of Act
This clause states that the purpose of this Act is to ensure that
consumers are provided with clear, accurate information about the
inclusion of palm oil in foods, and to encourage the use of certified
sustainable palm oil in order to promote the protection of wildlife
habitat.
6. Schedule 1 - Amendment of the Food Standards Australia New Zealand Act
1991
Clause 1 sets out the requirements by which manufacturers must label
palm oil among its ingredients where used and also the regulations by
which palm oil can be labelled as certified sustainable, if
applicable, to indicate its sustainable origins.
Subsection (1) states that from six months after the day on which the
Bill receives Royal Assent, producers, manufacturers and distributors
of foods containing palm oil must list palm oil as an ingredient of
the food regardless of the amount used in the food or to produce the
food, and if the palm oil has been certified sustainable in accordance
with the regulations, it may be shown as "CS Palm Oil" to indicate its
sustainable origins.
Subsection (2) provides that the regulations to determine whether the
palm oil is able to be certified sustainable is to be based on the
criteria as set out by the Roundtable on Sustainable Palm Oil, which
include transparency, compliance with local, national and
international ratified laws and regulations, use of best practices by
growers and millers, environmental responsibility, appropriate work
labour laws and development of new plantings.
Under Subsection (3), any standard developed under this section is not
subject to any review requested by the Australia and New Zealand Food
Regulation Ministerial Council and, while under subsection (4), Food
Safety Australia and New Zealand (FSANZ) can revoke this standard and
make another standard, any new standard would still need to meet the
requirements of subsection (1) whereby manufacturers and distributors
of foods containing palm oil must list palm oil as an ingredient of
the food, and if the palm oil has been certified sustainable in
accordance with the regulations, it may be shown as "CS Palm Oil" to
indicate its sustainable origins.
Subsection (5) requires that any new standard or variation of a
standard made under subsection (4) is also not subject to any review
requested by the Australia and New Zealand Food Regulation Ministerial
Council.
To avoid doubt during times where changes may occur or be in the
process of occurring in terms of standards being revised by FSANZ or
similar, subsection (6) requires that there must, at all times, be a
standard in force with regard to the labelling of palm oil, 28 days
from the day this Bill is enacted.