Wednesday, August 7, 2013

Govt confident in bouncing back from Fonterra scare

The Government is confident the contaminated infant formula scandal will not hurt the country’s reputation in the long term.
However, Prime Minister John Key says the damage to the country’s reputation and exports would depend on how long it takes to provide assurances to those importing potentially contaminated products that they are safe to consume.  
"In the medium to long term we can regroup. We’ve got a good international reputation. In the short term it does damage New Zealand and Fonterra."
Until the issue is sorted out, the country will "have to weather that storm", he says.
"The real test will be what confidence do international consumers, and indeed domestic consumers, have after this issue is resolved. The more confidence we can give them [...] the sooner we can get back to normality."
Trade Minister Tim Groser says it is “realistic” the country will take a hit from the incident, but the damage to New Zealand’s reputation would depend on the Government’s response.

"Long term it depends on the relationships we've got, how quickly we respond and how professionally we respond. It would be naive to think we’re going to get away without a bloody nose, but let’s hope the damage is limited to that."
Mr Groser says China will put a testing regime in place for other dairy products not affected by the tainted whey protein, but was not sure how they will be tested. The Chinese response to the issue is "measured", he says.
"Frankly, if you were in their situation, wouldn’t you do the same thing?"
The situation is fluid, and though import bans in some countries have not been implemented, they had been considered, he says.
"We should all be quite adult about this and quite realistic. The tide is going out and there will be a little bit of time before people are prepared to scale some of those restrictions back."
Mr Key says once the issue has been resolved, there can be at least two inquiries into the incident. These would include the time it took for Fonterra to notify the Government about the contaminated product and the process the company took to bring the issue into the public domain.
A second would reflect on how the Government responded to the incident.
3 News

Online Reporter
Monday 05 Aug 2013 6:05p.m.

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