Abbott capitulates on country-of-origin labelling

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By Leith van Onselen

Prime Minister Tony Abbott has finally rolled on country-of-origin labelling in the wake of the Patties frozen berry scandal, which saw around 20 Aussies become infected with hepatitis A after consuming frozen berries imported from China.

Facing stiff pressure from the National Party and the community, Abbott has commissioned a cabinet proposal to overhaul country-of-origin labelling, conceding there may be a case for a “modest” impost on business. From The Australian:

A cabinet submission — to be prepared by Agriculture Minister Barnaby Joyce and Industry Minister Ian Macfarlane — will be presented to senior ministers by the end of March.

“The people of Australia want better country of origin-labelling and this government is determined to deliver it to them,” Mr Abbott said…

“The Australian people … want to know what’s in the packet, but they also want to know what proportion of that is Australian. They want to make sure they have the capacity to back Australian farmers,” the Nationals deputy leader said.

This is great news. Australia’s current country-of-origin labelling laws are a joke, with most labels on packs – including terms like “product of” or “made from local and imported ingredients” – providing consumers with inadequate information to make an informed choice about what goods they buy. In turn, the current labelling regime also works against local producers.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.