Reforming Australia’s Export Certification System ABARES Outlook Conference 2011 Dean Merrilees General Manager – Export Standards Branch

Challenges Ahead Increased global trade Advances in science and technology National approaches may no longer be effective Changing risk profile Consumers and industry demanding a greater say Increasingly diverse food safety & nutrition issues Traceability increasingly an essential part of the food chain Resource constraints The need for reform is clear!

ECRP – What is it? Export Certification Reform Package (ECRP) –$127.4 m to promote efficiencies and improve productivity in delivery of export certification services. ECRP funding comprises: –$16.1 m for supply chain & regulatory reform –$26.0 m for meat inspectorate reform –$85.3 m for transitional funding. A new set of export fees and charges to return industry to full cost recovery. Industry and government working together to position Australia as a world leader in export certification systems.

Policy Principles for Reform Level of regulation continues to meet importing country requirements - market access is maintained! Ensure cost effectiveness of service delivery. Explore and implement technology opportunities. Regulatory model is supported in legislation. Key performance indicator data is collected. Robust verification regime.

Six joint Industry-AQIS Ministerial Taskforces established (dairy, fish, grains, horticulture, live animals, meat) Broad reform agenda presented to Minister Senate disallowed new export fees − ECRP halted due to budget constraints ECRP recommenced after Senate rescission − new fees commenced/return to full cost recovery Each MTF developed detailed work plan to implement their reform agenda – implementation underway Industry MTF Chairs meeting regularly to discuss lessons learnt and opportunities for common projects ECRP – Progress to date

Service Delivery Market Access Information, Communication & Technology Regulatory & Legislation Cost Recovery Arrangements Six Joint Industry-AQIS Ministerial Taskforces Export Reform Branch Governance, project management, communications, finance, secretariat, reporting AQIS/CPSU Consultative Committee (meat only) Food Exports Branch / Live Animal, Plant and Horticulture Export Programs/ Regional Management Technical, operational and implementation

Features of Future Service Delivery Model Consistent with Australian export legislation, importing country requirements and relevant international standards. Expanded role for AQIS authorised officers/inspectors (AAO/AAIs). Levels of AQIS intervention based on risk and performance. Key Performance Indicators provided by establishments. Audit Management System and other ICT enhancements. National standards for auditors to improve consistency in service delivery. Exact model varies across commodities.

AQIS Authorised Officers/Inspectors Australian government officials authorised under Australian legislation Must receive formal training and be assessed as competent. Must be a ‘fit and proper’ person. Legally bound by a ‘Deed of Obligation’. Works to AQIS Standard Operating Procedures and Work Instructions. Must meet inspection performance standards. Performance assessed though verification by AQIS. No conflict of interest/interference from company.

Benefits of Future Service Delivery Model AQIS presence at all establishments realigned to minimum level required to meet importing country requirements. Existing market access maintained (and enhanced where possible). Enhanced overall efficiency and effectiveness of export certification programs. Flexible, responsive systems that better support industry. Greater consistency in inspection and audit, reduced duplication of audit effort. Enhanced verification to target measures of performance. Reduced dependence on ‘end point’ inspection. Collection of performance data through AMS establishes national trends and enables analysis.

Need more information? ECRP website Dean Merrilees General Manager, Export Standards Branch