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Several consumer groups are lining up behind a proposal to charge food companies a registration fee as an alternative to import user fees to boost FDA's food safety budget. Consumer groups generally oppose user fees because they create the appearance of a conflict of interest.

"We prefer this approach to a fee-for-service system for food inspections, where inspectors may believe they are working for the companies rather than the public," Caroline Smith DeWaal, food safety director for the Center for Science in the Public Interest, wrote Wednesday in response to a question from Senate Health, Education, Labor and Pensions Chairman Edward Kennedy, D-Mass.

Kennedy is working with committee members to write a food safety bill that many stakeholders want to address not just imports, but domestic food safety as well.


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"The focus on imports is certainly appropriate, but there are enough problems with domestic food that we need a broader bill," DeWaal said. The Bush administration, along with House Energy and Commerce Chairman John Dingell, D-Mich., has focused on imports after pet food and fish imported from China came up contaminated last year, although other deadly outbreaks stemmed from domestic spinach and peanut butter.

Senate Majority Whip Dick Durbin, D-Ill., Dingell and two of his subcommittee chairmen have proposed bills that would tax food imports to boost FDA's funding for import inspections. DeWaal suggested instead an annual or biannual registration fee for food companies, estimating a $1,000 registration fee would rake in $322 million each collection period for FDA. Another consumer group, Food & Water Watch, opposes user fees but sees the registration fee proposal as a possible compromise, said Tony Corbo, a lobbyist with the group. Consumer Federation of America also is giving the proposal some thought, a spokesman said.

Scott Faber, vice president of federal affairs for the Grocery Manufacturers of America, said both proposals tax industry for something it already is doing. "Those companies that typically have the most facilities are the companies that are investing the lion's share in food safety," Faber said about registration fees. He noted FDA's food safety efforts saw a $56 million bump up to $513 million in the fiscal 2008 omnibus spending bill. Faber also said GMA expects the president to request more than $600 million for food safety at FDA in fiscal 2009. FDA's Science Advisory Board found last month even an extra $250 million for food safety might not be enough to allow the agency to do its job.

In DeWaal's responses to Kennedy's questions, she wrote about third-party certification of food companies, a provision in Dingell's bill. CSPI supports the measure but only as an alternative use of additional resources, not as a way to gain more resources by pawning duties off on private companies.

"It will require start-up costs to ensure that activities done using states or private entities have the requisite reliability," DeWaal wrote. "Mandating the use of third parties would also divert scarce agency resources from FDA inspection to training, accrediting and auditing the third-party organizations."

CFA still is considering third-party certification. Food & Water Watch is opposed. "That's the government's role, and I don't want Wal-Mart determining the safety of my food. That's what it boils down to," Corbo said.

COMMENTS

  • More user fees? This won't affect the food firms at all. They will simply raise the price of their product and the consumer will be the one to pay this hidden tax once again. All user fees should be stopped. They are nothing more than additional taxes on the consumers.
  • FDA inspection of imported should be revenue neutral and the ex/importers should pay the tab, I like Kennedys proposal in that regard. Unfortunately with all the domestic scares over the past years you have to question what FDA does domestically. All of the problems were detected by 3rd parties and not FDA so it begs the question just what benefit are they??
  • I appreciate what CSPI is doing very much, they definitely have the ear now of the decision makers in Washington and have worked hard for this. Caroline Smith-DeWaal's statements to Sen. Kennedy are interesting concerning the validity of third party inspections: Some areas you might consider in a government sanctioned third party food safety audit model: There are already International Standards for Auditors that establish credentials and qualifications. Those can be adopted. If the FDA for example accepts a firm based on their accreditation with ISO or ANSI standards, then much of the needed work is done. Its now up to the auditing company to establish the qualifications of its staff to maintain the accreditation. Individual auditors would have to establish credentialing with accredited programs. ISO audits of these accredited programs is another means to verification-validation that might save government some steps. I agree that the FDA is still responsible for the quality of the work so some auditing of sanctioned third parties should be done, but your point about diverting funds from the public health mission is well taken. A model whereby the firms doing the work pay a licensing fee to the government makes sense to cover their sanctioning costs. Considering the volume of work there should be little problem in the auditing firms paying for a license. Market forces would then dictate. You know the auditing firms will charge the auditee, not the government for the audit, so there is huge incentive here for everyone to open the doors to qualified third parties. There is always the human element in these matters. The best auditing firms out there know the importance of being diligent in findings due to the potential liability. Government is protected when they make a mistake by their sovereign immunity. So the bias that might arise when "industry inspects industry" in the model is probably no worse than what we have now.