VZCZCXRO6815
PP RUEHNZ RUEHPT
DE RUEHWL #0526 2000733
ZNR UUUUU ZZH
P 190733Z JUL 07
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC PRIORITY 4484
INFO RUEHBY/AMEMBASSY CANBERRA PRIORITY 4887
RUEHNZ/AMCONSUL AUCKLAND PRIORITY 1401
RUEHBN/AMCONSUL MELBOURNE PRIORITY 0090
RUEHPT/AMCONSUL PERTH PRIORITY 0011
RUEHDN/AMCONSUL SYDNEY PRIORITY 0546
RHHMUNA/CDR USPACOM HONOLULU HI PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY 0164
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY

UNCLAS WELLINGTON 000526 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
EB, INR, PACOM FOR J01E/J2/J233/J5/SJFHQ, PASS TO USTR, 
USPTO, COMMERCE FOR ITA, STATE FOR D (FRITZ), EAP/FO, AND 
EAP/ANP 
 
E.O. 12958: N/A 
TAGS: PGOV ECON ECPS ETRD KIPR PREL NZ AS
SUBJECT: LABOUR GOVERNMENT ABANDONS TRANS-TASMAN DRUG BILL 
 
REF: WELLINGTON 489 
 
1). (SBU) SUMMARY: The New Zealand Government has shelved the 
highly controversial Therapeutics Products and Medicines 
Bill, ending the prospect of a joint New Zealand - Australia 
agency to regulate prescription and over-the-counter 
medicines and medical devices. After lengthy contentious 
political debate, the Government could not secure enough 
votes in Parliament to ensure the bill's passage into law. 
The opposition National Party used Labour's failure to 
ramp-up the political rhetoric against the government. This 
almost certainly means the issue is dead until after the 2008 
election. End Summary 
 
NZ Abandons Trans-Tasman Drug Agency 
------------------------------------ 
 
2). (SBU) After a prolonged political battle, on July 16 
State Services Minister Annette King admitted defeat and put 
the highly contentious Therapeutics Products and Medicines 
Bill "on hold." As Post reported (see reftel) three quarters 
of the 895 industry submissions to the NZ Parliamentary 
select committee were opposed to the bill claiming the new 
regulations were overly onerous and would impose 
unnecessarily prohibitive compliance costs especially for 
low-risk therapeutic products. The bill would have created a 
bi-national authority replacing the current NZ Medsafe agency 
overseeing the safety, quality, and effectiveness of 
medicines, complementary medicine (over-the-counter 
medicines), medical devices, and blood products in both 
countries. 
 
Failure to secure enough political support prove fatal 
--------------------------------------------- --------- 
 
¶3. (SBU) The Government's announcement was all about vote 
counting. The razor thin majority that passed the bill in the 
first reading was lost with a change in party affiliation of 
two MPs. The Opposition National Party did not let the 
opportunity pass without derisive comments about a 
"Government in its dying days" as its Health Spokesman, Tony 
Ryall crowed. (Note. Although the next general election is 
not scheduled until late 2008, National has already built up 
a substantial lead over the ruling Labour Party in the polls. 
End Note.) After putting the bill on the shelf, King declared 
that it would be revisited "when sufficient parliamentary 
support is available." However, this almost certainly means 
the issue is dead until after the 2008 election. If the new 
government concludes that a common regulatory body is 
necessary to improve the safety of drugs and medical devices 
or (more likely) to advance a closer economic relationship 
with Australia, then it will face twin challenges: finding 
the political will and votes here to revisit a long-buried 
political failure; and persuading Canberra to agree to the 
effort. 
KEEGAN