NewsBrief
No.50 - December 2005		TM

Interesting Times Ahead

As New Zealand’s over-performing economy begins to falter, the government’s six-monthly economic forecast is predicting stormy seas ahead. Treasury expects growth will average barely 2% through to March 2008, considerably more pessimistic than predictions during last November’s election campaign.

The forecast of a worsening current account balance of payments to more than 9% of GDP next year is reflecting in falling business confidence, rising unemployment, a higher exchange rate, entrenched fuel costs, and static productivity.

Reflecting on the past year, three issues stand out, not because of any immediate impact, but primarily because they will each continue to influence the international and domestic chemical industry for years to come.

The drive to revitalise the international Responsible Care ® initiative will impact on your Association’s efforts to facilitate the successful implementation of the complex Hazardous Substances Regulations. A deteriorating regulatory and economic outlook reinforces the need for pragmatic and affordable solutions, as we chart our course through the turbulence and shoals ahead.

The timely and comprehensive review of the global chemical industry’s unique Responsible Care ® initiative sets the direction for this very successful and increasingly important safety, health and environmental performance benchmark for the next 20 years.

Chemical suppliers face more stringent regulation and greater constraints on our products than ever before. The European Union’s Registration, Evaluation, and Authorisation of Chemicals (REACH) regime is expected to be in place by 2007. New Zealand’s Hazardous Substances legislation, incorporating the Globally Harmonised System of Classification and Labelling of Chemicals (GHS) will begin to bite next year, as lead times expire and compliance is increasingly enforced.

The inevitable, ongoing consolidation of the international and local chemical industry brings new challenges, requiring a better co-ordinated and resourced response from both government and the business community.

For example, sensible regulatory requirements to give those distributing and using chemicals more comprehensive information, presents major administrative challenges as domestic manufacturing is replaced by finished product imported from countries years away from implementing basic workplace health and safety measures, let alone the sophistication of the GHS.

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