Australian Democrats Demand Apology For Pan Pharmaceuticals Debacle

Monday, April 23rd 2007

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Australian Democrats are demanding the Australian Government apologise to Pan Pharmaceutical boss Jim Selim following his acquittal in the New South Wales Supreme Court on Thursday.

Selim was accused of a litany of charges in 2003 following the largest recall of therapeutic products in Australia's history which resulted in 1369 products being withdrawn and the suspension of Pan's license by the Therapeutic Goods Administration (TGA). The charges brought forward included breach of manufacturing licence, but in the end only two charges made it to court and were thrown out.

Pan Pharmaceuticals were suppliers of 75% of Australia's complementary healthcare products - making them the largest supplier of complementary health products in Australia. They also supplied a range of over-the-counter and other drugs. The TGA ordered the massive recall after complaints about the company's travel-sickness pharmaceutical drug, Travacalm, were received and product was withdrawn. The TGA then went on to do a Class 1 recall of Pan's dietary supplements, citing speculation of 'inconsistent quality'. Class 1 recalls are issued when it has been shown the product is likely to cause serious, irreversible health damage or death. By this action, the TGA indicated to the general public that their Vitamin C or Echinacea or any other supplement they were taking was now expected to cause irreversible damage.

While the case has now come to an end, Selim has launched civil action against the TGA with official documents showing he is seeking more than $141 million in damages.

In New Zealand, a similar model for the regulation of all therapeutic products via a Trans-Tasman Agency is before parliament now. The Therapeutic Products and Medicines Bill - also being called The "Anti-Vitamin Bill" - was tabled for its first reading in NZ in December 2006 narrowly passing by one vote. The Select Committee is due to report back to parliament on June 15.

Under the TGA Australia, industry members say the draconian and heavy-handed regime has had a crippling effect on their industry with job losses and increasing compliance costs resulting in many businesses shutting down or moving offshore. One Australian industry member said of the Pan debacle: "It's a clear demonstration of how incompetent the TGA is - does NZ really want to be part of this regulatory agency?"

Some Little Known Facts About the "Anti-Vitamin Bill":

1. The Anti-Vitamin Bill is able to undermine the sovereignty of NZ Parliament and will become part of an international treaty which overrides internal treaties - including the Treaty of Waitangi
2. No future government will be able to override this legislation without severe consequences affecting trade
3. The unelected and unaccountable Managing Director of the Agency can make decisions which have the 'force of law', and bypass the need to be voted on or approved by either Australian or New Zealand parliaments
4. The agency will be set up under Australian law and headquartered in Canberra. About 93% of the staff of the agency will be Australians, and just 7% New Zealanders
5. The agency will also be given unprecedented powers of search and seizure and the ability to issue fines of $550,000 per business and $55,000 for each director which can be issued up to 12 months after allegedly committing an offence. The fines must be paid within 28 days otherwise the company is prosecuted.
6. Penalties for offences also range up to $5.5 million for companies with jail sentences of up to 5 years.
7. Regulatory costs of bringing a single new product to market can easily exceed A $55,000 (the more ingredients, the higher the cost). These costs don't include audit costs for overseas' manufacture (up to $100,000) or annual charges which keep increasing, with a 28% increase per product in Australia last year
8. The ability for Tangata Whenua to commercialise traditional Rongoa (traditional Maori medicines) would be dictated by an international regulator without any obligation to recognise the Treaty Of Waitangi
9. Extreme regulatory costs will make new product innovation an unacceptable risk for manufacturers, and New Zealand stands to lose its unique place in the global market as a leader in high quality 'clean and green' innovative natural products
10. According to Acting Chair of the NZ coroner's council, Dr Wallace Bain, there has never been a death in New Zealand caused by eating a health supplement.
11. A Ministry of Health Survey in 1997 showed 60% of New Zealanders use dietary supplements

Nationwide protests are planned in Whangarei, Auckland, Wellington and Christchurch on Saturday April 28.

For media information / interviews:
Sian Bennett 021 742 614
Daniel King 021 435 847

For rally / protest information:
Auckland - Nicola Grace
09 377 2850 / 027 625 1864

 

If you need help or advice, you are welcome to email our naturopathic team with your health question.

Disclaimer: The health information presented here has been written for the New Zealand health consumer. It is of a general nature and is only intended to provide a summary of the subjects covered. The information is not intended to be comprehensive or to provide medical advice to you. While all care has been taken to ensure the accuracy of the information, no responsibility or liability is accepted, and no person should act in reliance on any statement contained in the information provided. All health ailments should be treated by a qualified health professional.

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