REGULATORY ANALYSIS UNIT
The role of the Regulatory Analysis Unit (RAU) is to lead FSANZ in delivering robust regulatory impact analyses that harness our strengths, win the confidence of our stakeholders as being credible and realistic, and are assessed as acceptable by the Office of Best Practice Regulation (OBPR).
In order to ensure that our assessments include rigorous cost benefit analysis, the unit makes it a priority to participate actively through the life-cycle of each project.
The OBPR is now part of a new government portfolio, the Department of Finance and Deregulation. This new emphasis on deregulation is consistent with efforts throughout the OECD countries both to minimise regulation and to justify it. FSANZ now operates in an environment that demands increased scrutiny of any additional financial burden to business that might arise from complying with new regulations. It is therefore imperative not merely to demonstrate the food-safety benefits of new standards, but to also draw attention to the overall net economic benefits to society. By employing health economic concepts such as Disability Adjusted Life Years, it is possible to assess the extent to which new regulations can reduce the burden of disease. Further, these results can be explained in monetary terms so stakeholders can compare the benefits with the costs.
We have incorporated new techniques that show the costs of food borne illness, and also quantify morbidity, and we are including them in FSANZ’s broader decision-making process. During the past year, in the belief that sharing experiences with others improves everyone’s knowledge and understanding, we have initiated exchanges with other standards-setting agencies in Australia to share data, processes and best practice methods.
RAU knows we need to clearly define the problem that each project seeks to address. Doing so means we can ensure that projects consistently find the best solution to the stated problem. This has become particularly relevant while FSANZ has been working on several Primary Production and Processing Standards. Standards for Meat and Meat Products, Poultry, Raw Milk, Sprouts and Eggs already exist in some states and industries; because they have to conform with international standards to ensure their export markets. So there are real challenges in defining and solving problems in such complex projects..
We have recently launched an important initiative and will further develop it next year. It’s a Quadrilateral Food Regulation Economists Group. We have had initial exchanges with partner agencies in Canada, New Zealand and the USA, and will proceed with more formal meetings next year.