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1 Introduction

This discussion paper is the next stage in implementing the Government's Hazardous Substances Strategy. The strategy aims to improve the workability of the hazardous substances side of the Hazardous Substances and New Organisms Act 1996 (HSNO). We seek your feedback on several proposals to improve HSNO processes, and thereby reduce compliance costs and improve protection of public health, safety and the environment.

The discussion paper is in two volumes. The first volume is intended for people with a general interest in the HSNO Act. This second volume is more technical and is intended for a specialist audience, such as people who make applications for approvals or otherwise frequently interact with the Environmental Risk Management Authority (ERMA).

The proposals in both volumes affect only hazardous substances. They do not affect the HSNO processes for managing genetically modified organisms or other new organisms.

1.1 The origins of our hazardous substances law

The HSNO Act was the end result of reforms in response to public concern internationally and in New Zealand about the management of hazardous substances. Chapter 19 of the Agenda 21 document, published following the United Nations Earth Summit in Rio de Janeiro in 1992, contained international best practice principles for the environmentally sound management of toxic chemicals. The key principles were incorporated into the HSNO Act. They are:

  • acting cautiously in instances where there is scientific and technical uncertainty
  • providing for the right of the public to know about the effects of substances
  • considering the full life-cycle of a substance from manufacture to disposal.

The HSNO Act also embodies the United Nations' Globally Harmonised System for the Classification and Labelling of Hazardous Substances (GHS), which is now being adopted by countries around the world.

The HSNO Act has a clear purpose to protect the environment and the health and safety of people and communities by preventing or managing the adverse effects of hazardous substances. It does this in large part by having a single independent authority, ERMA, make decisions on whether or not hazardous substances can be imported, manufactured or used, and assign controls to ensure they are used, stored, handled and packaged in such a way as to manage any risks they pose to people, property and the environment.

1.2 The Hazardous Substances Strategy

The hazardous substances provisions of the HSNO Act have been operating since July 2001. In that time it has become clear that there are a number of teething problems with the Act, including systemic problems that affect the Act's workability. These have been identified through letters to ministers, case studies from industry, ERMA's own experience working with the Act, and an independent assessment undertaken by an overseas expert. [BC Environmental, The Hazardous Substance and New Organisms Act 1996, Ministry for the Environment, Wellington, New Zealand, 2002.]

In response, the Ministry for the Environment and ERMA formed a small working group with knowledge and experience in hazardous substances management to help develop a strategy for improving the Act's workability. The working group's report [Ministry for the Environment,Strategy for Improving the Workability of Hazardous Substances Provisions of the Hazardous Substances and New Organisms Act, Ministry for the Environment, Wellington, New Zealand, 2003.] was released in June 2003 and was positively received by the business community.

The working group identified five key areas for improving the workability of the hazardous substances provisions of the HSNO Act, and these have formed the basis for the action plan laid out in the strategy. They are:

  • simplify transfer [Transfer is the process whereby substances are assigned HSNO controls and the controls that applied under previous legislation cease to apply to the substance.] to ensure that the HSNO transfer process is practical, clear and timely
  • remove redundancies and costs from the hazardous substance approval process and management system where they do not add to the protection of the environment and the health and safety of people and communities, and reduce barriers to the introduction of new hazardous substances used in low-risk situations
  • make controls understandable for users and enforcement officers by ensuring that they are practical, clear and cost effective, and that information on the legal requirements for hazardous substances is easy to access
  • improve the way the HSNO Act fits with other legislation, including the Resource Management Act 1991 (RMA), the Agricultural Compounds and Veterinary Medicines Act 1997 (ACVM), the Health and Safety in Employment Act 1992, the Building Act 1991, and the Food Act 1981
  • ensure that compliance monitoring and enforcement arrangements are sound and that they demonstrate effective risk management.

The strategy contained a number of short-term and long-term actions to address these issues. There has been significant progress since the strategy was announced in June 2003, with all the short-term legislative actions now completed.

First, a bill to simplify transfer was introduced into Parliament in November 2003. Submissions on the Hazardous Substances and New Organisms (Transitional Provisions and Controls) Amendment Bill closed on 16 January and the bill was passed in mid-March 2004. Explosives and fireworks were transferred to HSNO controls in August 2003 - the first group of substances to come fully under the HSNO regime. The technical specifications for the final outstanding sets of control regulations have also been completed and now have legal effect, and dangerous goods were transferred to HSNO controls on 1 April 2004.

In addition, ERMA has been allocated extra funding to allow it to move to a more predictable and affordable pricing system for hazardous substance approvals, thereby reducing the costs of approvals. [For example, a rapid assessment now costs a fixed fee of $500 only.] ERMA has also undertaken an information project to look at how the costs of compiling information for new substances applications might be reduced.

To improve the enforcement arrangements, extra funding has been allocated to ERMA to fill gaps in local capacity for hazardous substances compliance monitoring, enforcement and emergency response. ERMA, in conjunction with Occupational Safety and Health, is now in the process of developing contracts with territorial authorities.

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