May 14, 2001
Claims made today by the Employers and Manufacturers Association (EMA) about the costs of hazardous substances regulations present a distorted and alarmist picture of the new regime, says ERMA New Zealand
The hazardous substances section of the Hazardous Substances and New Organisms (HSNO) Act is due to come into force on 2 July 2001. It will introduce a new performance-based regime for managing substances that may be harmful to the environment and public health.
Chief Executive, Dr Bas Walker, said he was annoyed that comments he made in a recent speech have been taken out of context.
"I entirely support the comments made today by the Minister for the Environment, Hon Marian Hobbs. The EMA is creating a misleading impression about the effect of the new regime for New Zealand businesses.
It is important that everyone has an accurate view of what the new regime will mean - particularly small and medium sized businesses, which are by far the largest group involved with the use of hazardous substances."
The new regime is more comprehensive and will certainly impose more costs than in the past. But the old system was fragmented, inconsistent and out of date. For example, it allowed 140,000 chemicals to be notified under the Toxic Substances Act without any attempt to even recognize any hazardous properties they might have.
"That is not only unacceptable in New Zealand, it is increasingly viewed as unacceptable in other jurisdictions too. Right throughout the world there is now a push to scrutinise both existing and new chemicals, with greater examination of their effects on people and the environment."
The EMA's statement ignores the fact that not all substances used in industry or agriculture will be affected by the new law.
This is a new approach to regulation. It focuses on managing effects rather than bureaucratically controlling every substance in existence. If the substance is not harmful enough to reach the hazard thresholds, it will not be affected by the new law at all. There will be no application needed, no fees and no compliance costs.
If a substance is hazardous - for example it might be toxic to humans or other species, explosive, flammable, corrosive etc - then it will have to be looked at before it is introduced. This is only common sense. Dealing with only those substances that may have a significant risk is much more efficient and a vast improvement on the system we have had in the past.
Second, the law only applies to new substances. Existing substances already legally in use - of which there are thousands - will not be affected. This means that on the start date, life will continue as normal for the vast majority of New Zealand businesses.
Third, if a new substance does need an approval, it might still be considered under the rapid assessment provisions of the Act (if it meets defined criteria). The typical cost for a rapid assessment is likely to be $400 - $2,000 rather than the figures suggested by the EMA. Substances with similar effects can also be grouped under one application, further reducing costs.
More complex applications, with significant effects on the environment, will cost more, but these are likely to be few and far between. We are anticipating only 1 or 2 of these applications in the first year.
Dr Walker supported the Minister's comment that the New Zealand legislation was consistent with international thinking.
"I have just had very positive discussions with industry associations in Europe and the USA, who represent companies like Bayer, Dow, Chevron, 3M and so on. As far as they are concerned the HSNO Act is a done deal and they are looking forward to getting on with it. The focus was very much on how best to operate under the new regime.
I'd like to encourage our colleagues in New Zealand to adopt the same focus.
We are about to start a national education campaign for industry at the end of this month, working in partnership with the EMA and other business groups. I would like to think this is going to be a positive and practical exercise so that we can work together to get the new regime underway."
For further information:
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Dr Bas Walker |
Karen Cronin |