LABOUR GOVERNMENT ABANDONS TRANS-TASMAN DRUG BILL

UNCLAS WELLINGTON 000526 SIPDIS SENSITIVE SIPDIS EB, INR, PACOM FOR J01E/J2/J233/J5/SJFHQ, PASS TO USTR, USPTO, COMMERCE FOR ITA, STATE FOR D (FRITZ),EAP/FO, AND EAP/ANP E.O. 12958: N/A TAGS: PGOV ECON ECPS ETRD KIPR PREL NZ AS SUBJECT: LABOUR GOVERNMENT ABANDONS TRANS-TASMAN DRUG BILL REF: WELLINGTON 489 1). (SBU) SUMMARY: The New Zealand Government has shelved the highly controversial Therapeutics Products and Medicines Bill, ending the prospect of a joint New Zealand - Australia agency to regulate prescription and over-the-counter medicines and medical devices. After lengthy contentious political debate, the Government could not secure enough votes in Parliament to ensure the bill's passage into law. The opposition National Party used Labour's failure to ramp-up the political rhetoric against the government. This almost certainly means the issue is dead until after the 2008 election. End Summary NZ Abandons Trans-Tasman Drug Agency -------------- 2). (SBU) After a prolonged political battle, on July 16 State Services Minister Annette King admitted defeat and put the highly contentious Therapeutics Products and Medicines Bill "on hold." As Post reported (see reftel) three quarters of the 895 industry submissions to the NZ Parliamentary select committee were opposed to the bill claiming the new regulations were overly onerous and would impose unnecessarily prohibitive compliance costs especially for low-risk therapeutic products. The bill would have created a bi-national authority replacing the current NZ Medsafe agency overseeing the safety, quality, and effectiveness of medicines, complementary medicine (over-the-counter medicines),medical devices, and blood products in both countries. Failure to secure enough political support prove fatal -------------- -------------- ¶3. (SBU) The Government's announcement was all about vote counting. The razor thin majority that passed the bill in the first reading was lost with a change in party affiliation of two MPs. The Opposition National Party did not let the opportunity pass without derisive comments about a "Government in its dying days" as its Health Spokesman, Tony Ryall crowed. (Note. Although the next general election is not scheduled until late 2008, National has already built up a substantial lead over the ruling Labour Party in the polls. End Note.) After putting the bill on the shelf, King declared that it would be revisited "when sufficient parliamentary support is available." However, this almost certainly means the issue is dead until after the 2008 election. If the new government concludes that a common regulatory body is necessary to improve the safety of drugs and medical devices or (more likely) to advance a closer economic relationship with Australia, then it will face twin challenges: finding the political will and votes here to revisit a long-buried political failure; and persuading Canberra to agree to the effort. KEEGAN