An independent report into the Fonterra whey protein contamination scare finds the Ministry for Primary Industries (MPI) did not put enough emphasis on food safety.
However, the report also says the incident was not due to any crisis or failure of the food safety system governing the dairy industry.
In August this year, Fonterra announced that whey protein - some of which had made its way into infant formula - was feared to be contaminated with a botulism-causing bacteria, sparking a global alert and recalls. Further testing revealed that it was a false alarm.
The report released on Wednesday looked at at the overall effectiveness of food safety regulations in New Zealand and found they were not at fault. A second report looking at the cause of the incident has yet to be completed.
The first report makes 29 recommendations to the Government to strengthen food safety - particularly in relation to exports to emerging markets such as China.
The Government said on Wednesday it would spend an extra $8 million to $12 million a year on a range of moves. They include:
- Strengthening the capability needed to support increasing trade with China.
- Establishing a centre of food safety science and research.
- Increasing the capability of dairy processing regulations.
- Establishing a food safety and assurance advisory council.
- Speeding up work to consolidate and simplify food safety laws and regulations.
Primary Industries Minister Nathan Guy said the completed report has been shown to Chinese authorities.
"There's been a favourable response from Chinese government officials, that's been worked through over the last couple of days. It will go down very well, in my opinion, this report. It will open up some of the markets who have some small restrictions still in place - because what it does confirm, is that our regulatory system is world leading."
Food Safety Minister Nikki Kaye said the report found that New Zealand's food safety regulatory system is consistent with international principles. Work has already started on revising regulations related specifically to the manufacture of infant formula, she said.
The Labour Party's primary industries spokesperson, Damien O'Connor, said the first report is a damning indictment on the Government's creation of the Ministry for Primary Industries (MPI).
An independent reviewer of the report, Professor Alan Reilly from University College in Dublin, Ireland, said food safety appears not to have had the visibility it deserved within the ministry.
Professor Reilly said were tensions between the MPI's role to promote trade and its role as the regulator.
