Albanese Government releases long-awaited APVMA report but rejects call to roll embattled agency into DAFF

Farmers have welcomed the long-awaited release of a report into Australia’s embattled agricultural and veterinary chemicals regulator, with the Albanese Government rejecting a recommendation to strip the agency of its status as an independent statutory authority. It comes after the Government ordered a “rapid evaluation” of the Australian Pesticides and Veterinary Medicines Authority last July in the wake of a damning independent review that flagged “serious and systemic cultural and governance issues”. Former public servant Ken Matthews was appointed to compile the report focussing on the APVMA’s future structure and governance, which was completed last October. On Wednesday, Federal Agriculture Minister Murray Watt released the report and handed down the Government’s preliminary response amid mounting pressure from farming groups. He announced the Government supported “many” of the report’s 33 recommendations, but rejected Mr Matthews’ proposal to roll the APVMA into the Federal agriculture department and abolish its board. “I consider that retaining the APVMA as an independent statutory authority, with its own board, provides the best assurance of regulatory independence in the context of Australia’s agvet chemicals regulatory system,” Senator Watt said in a statement. The Government also rejected a recommendation to relocate the APVMA’s headquarters from Armidale, in rural NSW, to Canberra. “The disruption and chaos caused by (former Agriculture Minister) Barnaby Joyce when he forcibly relocated the APVMA to his local electorate put a massive strain on the staff at the regulator,” Senator Watt said. “According to the independent review (the move) ‘has had serious impacts on the performance and culture of the APVMA’. “We will not be making the same mistake. The APVMA will remain in Armidale, giving certainty to local workers and the local community.” However, the Government will implement a recommendation to revoke a policy order requiring APVMA staff to be based in Armidale. Senator Watt said said removing the order would bring the APVMA in line with “every other Federal agency” and ensure it had access to “the best people for the job”. “We want to ensure that we have the world’s best chemical regulator, so that consumers and our overseas customers can have confidence in the food and fibre we produce,” he said. “At the same time, the APVMA needs to be structured so that it can independently and efficiently approve new, safe chemicals that help farmers do their job.” Senator Watt said the government’s full response to all the report’s recommendations would be released mid-year. The announcement was welcomed by farm lobby groups, which have repeatedly raised concerns over the diminishing performance record of the APVMA. It followed revelations in Senate Estimates that just 78.3 per cent of major application assessments were completed on time for the quarter ending December 2023, fuelling concerns delays were impacting farm productivity and competitiveness. GrainGrowers Limited chief executive Shona Gawel said delays in registering new chemical products had prevented them from being brought to market in time for this year’s growing season. “Competitor markets, such as the OECD, United States and European Union, are each around seven times larger,” she said. “Even now, our farmers are lagging behind or missing out on access to crop protection products used in those markets.” Ms Gawel said the report’s release was an important step and GGL would closely work through the detail of the Government’s response “to better understand the implications for the grains industry. “Any changes cannot be to the detriment of industries who rely on a robust regulatory process to deliver timely access to innovative products,” she said. “We need a regulatory system free from commercial, political or ideological interference. We need a system that is independent and science-based.” She welcomed the decision not to relocate the APVMA, a view echoed by CropLife Australia chief executive Matthew Cossey. “While CropLife was one of the most vigorous and loud critics of the relocation of the APVMA to Armidale under the previous government, we support the Minister’s decision not to make the same mistake twice,” Mr Cossey said. “Considering the recent history of the agency, preventing further disruptions and providing stability for staff and its operations is a crucial factor to improving its performance.” Mr Cossey said CropLife — the national peak body for the plant science sector — would critically assess all recommendations in the coming weeks. The National Farmers’ Federation called the Government’s response “well considered” and “a step in the right direction”. “Timely access to world leading agvet chemicals is critical to achieving agriculture’s ambition of $100 billion in farm gate output by 2030,” NFF chief executive Tony Mahar said. “Any reforms to the APVMA must seek to ensure a genuinely fit-for-purpose and efficient regulatory environment that manage risk without hindering access to safe technologies.”