David
Sumberg MEP
Date: 25/11/2004
SUMBERG: 'Sledgehammer' EU food law threatens small businesses
North West Euro MP David Sumberg is warning that draconian new rules governing health and nutrition claims on food labels, currently under discussion by the European Commission (EC), could lead to ruin for many UK small businesses.
The EC is proposing that any health claim made on products will have to be scientifically proven - a process which could cost between £25,000 and £250,000. Firms wanting to market products that claim health-related benefits, such as "purifies the body" or "improving memory", will have to substantiate the claim with the European Food Safety Authority. But Mr Sumberg said while large firms could afford such tests, small ones could not. "They will be frozen out of the market," he said.
The UK Government has already said it supports the proposed legislation but small British health food and supplement firms believe the Food Standards Agency (FSA) has not taken into the account the impact the new rules will have on their businesses.
Mr Sumberg said: “These proposals are a classic case of using a sledgehammer to crack a nut. They will place an impossible burden on the UK’s small food producers and may force many out of business. The reality is a stark as that. "
Mr Sumberg warned the proposed new rules governing the promotion and packaging of food, drinks and pharmaceuticals could become law as soon as next year.
North West based business pressure group the Forum of Private Business (FPB) is also campaigning against the EC proposal and is keeping Mr Sumberg up-to-date with its meetings with the Food Standards Agency. FPB's Food specialist Bob Salmon said:
"Once such a scientific claim has been lodged on behalf of a business, that producer will ‘own’ the claim for up to seven years, preventing others from making similar claims for their products or being forced to pay a ‘licence’ or copyright fee to do so,' he said. " While larger manufacturers may be able to invest the time and money to do this, smaller businesses will struggle and may be left with no alternative other than to cease trading. A lot of specialist health foods and supplements are produced by very small players. Larger providers will be able to invest in scientifically verifying any claims."
The proposal is due to be debated by the European Parliament in the autumn.