Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2010
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
FOOD STANDARDS AMENDMENT
(TRUTH IN LABELLING - PALM OIL) BILL 2010
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator N Xenophon and Senator B Brown)
Food Standards Amendment (Truth In Labelling - Palm Oil) Bill 2010
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 under current
labelling laws, manufacturers are able to label palm oil as "vegetable oil", preventing
consumers from being able to make an informed choice about the foods they purchase
and consume.
Palm oil production results in extensive deforestation. As the major producers are
Malaysia and Indonesia, this has led to the removal of wildlife habitat and has placed
many species, including the endangered Orang-utan, at risk.
It's estimated that 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. It's estimated
that Orang-utans will be extinct by 2013.
This Bill is designed to give consumers accurate information to allow them to make an
informed choice about whether they want to purchase or consume a product containing
palm oil.
Palm oil can be produced in a sustainable manner. The international Roundtable on
Sustainable Palm Oil (RSPO) has set out criteria to measure sustainable palm oil
production.
These criteria 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.
A not-for-profit organisation formed in 2004, the RSPO aims to promote the growth
and use of sustainable palm oil products through credible global standards and the
engagement of stakeholders. The RSPO includes members from the 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 RSPO's criteria able to label the ingredient as such to indicate its
sustainable origins. In so doing, manufacturers are able to advise consumers that palm
oil is an ingredient of the product, but that 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 2010.
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 new provision commences,
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.
Under subsection (6), 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.