Successful lawsuit doesn't affect NZ, says Dalziel

The Australian Federal Government's decision to pay a record $A50 million (NZ$62.3 million) compensation to the founder of complementary medicine manufacturer, Pan Pharmaceuticals, does not impact on New Zealand, Food Safety Minister Lianne Dalziel says.

Jim Selim sued the Australian Therapeutic Goods Association (TGA) for ruining his business, claiming it had acted outside its power when withdrawing his company licence, after concerns over certain products and manufacturing processes, the Sydney Morning Herald reported.

The TGA recalled all products manufactured by Pan and as some of these products were on sale in New Zealand, then food safety minister Annette King recalled the products here.

Ms Dalziel said last week New Zealand's decision to recall the products in question was based on evidence provided by the TGA in Australia, but the process run in New Zealand was entirely separate and the recall made under the Food Act 1981.

Health Freedom spokeswoman Nicola Grace said a class action suit against the TGA involving some 100 businesses that closed because of this recall was likely to ensue and "the ticket may just include Minister Annette King".

She called for an inquiry into the recall and for Ms King to resign as a result of the Australian decision, claiming the natural product recall in New Zealand was illegal.


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