Chairperson
Cabinet

Initial Brief on Report of the Royal Commission on Genetic Modification Summary

1. This paper describes the report of the Royal Commission on Genetic Modification (the Report) and makes brief preliminary comments on the recommendations.  The report contains 49 recommendations of varying levels of complexity that are interdependent.  The paper recommends that the Government’s response is; to thank the Commissioners for their work, to characterise the report as measured, balanced, and inclusive of the many values that New Zealanders hold, and to acknowledge the report’s major theme.  The Government's response today should be to address the report as a whole, and not comment on the individual recommendations until the whole report has been considered.

2. The major theme of the report is Preserving Opportunities.  The Royal Commission explicitly rejects the idea of a New Zealand free of all genetically modified material at one extreme and the option of unrestricted use of genetic modification at the other.  No recommendations seriously conflict with current government policy or strategic direction.  There is strong endorsement of existing structures and frameworks, though changes in a number of areas are recommended.  

Background

3. Cabinet has directed officials (Ministry for the Environment lead) to provide an initial brief for Cabinet on Monday 30 July, following the release of the Commission’s report [CAB Min (01 15/7].  Cabinet has agreed that the initial briefing be drafted for the Minister for the Environment to take to Cabinet, that the paper describe the key findings of the Royal Commission’s report and recommend a general, high level Government statement that can be considered for immediate public release [CAB Min (01) 22/6, FIN Min (01) 14/9].

Structure of the report

4. The report is in four volumes.  The first volume is the main report and recommendations.  There are three volumes of appendices: context and process, outcomes of consultation & submissions from interested persons, and outcomes of consultation & submissions from the public (including results of a public opinion survey).  There are 49 recommendations, which range from those setting a strategic direction for New Zealand to the detailed and specific.  Attached to this briefing is the executive summary, the full list of recommendations, and some key extracts from the report.

The general direction of the report

5. The Royal Commission has explicitly rejected the idea of a New Zealand free of all genetically modified (GM) material at one extreme, or the option of unrestricted use of genetic modification at the other.

6. The Royal Commission has explored the views of all New Zealanders, not just through submissions and hearings but also through public opinion survey work (volume 3 p179).

7. An important part of the report was to identify seven shared values as a framework for reaching conclusions about genetic modification: the uniqueness of Aotearoa/New Zealand, the uniqueness of our cultural heritage, sustainability, being part of a global family, the well-being of all, freedom of choice, and participation.

8. Although the Commission was satisfied that the existing basic regulatory framework is appropriate, it suggested a number of enhancements.

The report’s recommendations

9. The 49 recommendations are listed in Annex 1 with some preliminary comments from officials on the scale of work involved in developing a government response.

10. 10 The Commission presents a suite of recommendations that address its major conclusion of preserving opportunities.  These recommendations include:
    • Mechanisms to manage the coexistence of different kinds of agriculture (i.e. organic, GM, conventional and integrated pest management).

    • A new category of “conditional release” of GM organisms (currently the only option is to release without controls).

    • If an application for release of a genetically modified crop is received, the first such application should be called in and decided by the Minister for the Environment.

11. The Commission also presents three major proposals that relate to its vision for the biotechnology century, while making provision for ongoing oversight of biotechnological developments:  These are:
    • that the Government establish Toi te Taiao: the Bioethics Council to:
      • act as an advisory body on ethical, social and cultural matters in the use of biotechnology in New Zealand
      • assess and provide guidelines on biotechnological issues involving significant social, ethical and cultural dimensions
      • provide an open and transparent consultation process to enable public participation in the Council’s activities

    • that the Government establish the office of Parliamentary Commissioner on Biotechnology to undertake futurewatch, audit and educational functions with regard to the development and use

    • that the Ministry of Research, Science and Technology develop on a consultative basis a medium- and long-term biotechnology strategy for New Zealand.

12. There are a number of other significant points:
    • The commission also recognised the importance of sustainable development and the knowledge economy. This is consistent with the Government’s strategic direction.

    • The Commission recognised the value to New Zealand of inclusion in the international community and the importance of international obligations to the country’s economic well-being.

    • Increased information is an important theme and many of the recommendations aim to improve communication, transparency and accountability for the public, especially on cultural and ethical issues.

    • The commission recommends strengthening the Treaty of Waitangi section in the Hazardous Substances and New Organisms (HSNO) Act.

    • The commission did not suggest changes to the regulations for mandatory of labelling GM food, but suggested the Government facilitate voluntary labelling of non-GM foods and provide consumer information

    • There are no recommendations to prohibit field tests or releases.  In general the Commission seeks to lower compliance costs for low risk research, but to ensure enhanced processes for higher risk activities, e.g, a new conditional release category and Ministerial call-in for any first crop release application.

    • The commission concluded that for the time being, there be no change in the liability system.

13. The report also contains a number of suggestions that are not contained in the formal recommendations of the Report.  These suggestions, such as referring the liability issues to the Law Commission for more intensive study, will need to be considered in conjunction with the recommendations.

Treaty implications

14. Eight recommendations in the report address issues raised by Maori.  The majority are consistent with government policy.  Two recommendations (strengthening of the Treaty clause in the HSNO Act and the establishment of Toi Te Taiao (Bioethics Council) will require significant further analysis and consideration by Ministers. 

Fiscal Implications

15. A number of the recommendations in the Royal Commission’s report will have significant fiscal implications if implemented.  Officials will report back with detailed fiscal implications, and options for managing these, once further analysis of the report’s recommendations has been undertaken.   

16. A draft press release has been prepared to accompany the release of the report.  It reflects the messages agreed by Cabinet on 23 July and the content of the report, now that is known.

17. Cabinet has previously agreed that the Minister for the Environment will be the lead spokesperson for the report, and that Ministers may wish to comment on specific portfolio interests.  Where possible Ministers should be aware of the overlapping nature of many of the recommendations in the report.  Where possible, Ministers should also consult the Minister for the Environment before commenting (FIN Min (01)14/9).

18.  Briefings have been offered to all Parliamentary parties and will take place during this week’s caucus meetings.  All MP’s will receive a copy of the full report.  A briefing for all Interested Persons is being arranged for today (Monday) at 2pm.  This briefing will be a ‘lockup’ that will last until the end of the post Cabinet Press Conference (approximately 3.30pm).  A briefing for Departmental Chief Executives has also been arranged for today (Monday).

19. The Government has indicated that it will respond to the report within three months (i.e. by 31 October). Officials are developing a work programme for the next three months.  This work programme will be outlined in the paper that the Minister for the Environment will take to Cabinet before the end of August on the voluntary moratorium and any other matters.

20. The report contains no comment on the voluntary moratorium, which ends on 31 August.  The moratorium was designed to keep future options open while the Royal Commission was operating and was negotiated between government and many biotechnology industry players.  Options will be canvassed in the separate August paper.

Consultation

The following departments were involved in the development of this paper: Department of Prime Minister and Cabinet, Ministry for the Environment (lead), Ministry of Agriculture and Forestry, Ministry of Economic Development, Ministry of Foreign Affairs and Trade, Ministry of Health, Ministry of Research, Science and Technology, Te Puni Kokiri and The Treasury.

Recommendations

22. It is recommended that Cabinet:
    1. note that the Report of the Royal Commission on Genetic Modification was presented to the Governor-General on Friday 27 July;

    2. note that the report contains 49 interdependent recommendations of varying complexity;

    3. agree that the government response be:
       • to thank the Commissioners for their work,

       • to characterise the report as measured, balanced, and inclusive of the many values that New Zealanders hold, and to acknowledge the report’s major theme of preserving opportunities; and
       • not to comment on the individual recommendations until the whole report has been considered (a report back is due by October 31 2001).

    4. note that the Royal Commission has explicitly rejected the idea of a New Zealand free of all GM material at one extreme, or the option of unrestricted use of Genetic Modification at the other;

    5. note that the Royal Commission has identified seven shared values as a framework for reaching conclusions about genetic modification:  the uniqueness of Aotearoa/NewZealand; the uniqueness of our cultural heritage, sustainability, being party of a global family, the well-being of all, freedom of choice and participation;

    6. note that although the Commission was satisfied that the existing basic regulatory framework is appropriate it suggested a number of enhancements;

    7. note that the major proposals in the report are:
       • Mechanisms to manage the coexistence of different kinds of agriculture (i.e. organic, GM, conventional and integrated pest management).

       • A new category of “conditional release” of GM organisms (currently the only option is release without controls).

       • If an application for release of a genetically modified crop is received it should be called in and decided by the Minister for the Environment.

       • that Government establish Toi te Taiao : the Bioethics Council to:
         • act as an advisory body on ethical, social and cultural matters in the use of biotechnology in New Zealand
         • assess and provide guidelines on biotechnological issues involving significant social, ethical and cultural dimensions
         • provide an open and transparent consultation process to enable public participation in the Council’s activities

       • that Government establish the office of Parliamentary Commissioner on Biotechnology to undertake futurewatch, audit and educational functions with regard to the development and use

       • that the Ministry of Research, Science and Technology develop on a consultative basis a medium- and long-term biotechnology strategy for New Zealand

23. note that the Minister for the Environment will report to cabinet with proposals for on the future of the voluntary moratorium before it expires on 31 August 2001; and

24. agree that this paper and its annexes accompany the release of the report today.