APVMA to remain in Armidale but will undergo major structural reform

Agriculture Minister Murray Watt revealed the long-awaited news as part of the preliminary government response to the Rapid Evaluation into the Australian Pesticides and Veterinary Medicines Authority's organisational and regulatory shortcomings by Ken Matthews in September last year.

The review was ordered after an independent review by Clayton Utz found serious and systemic cultural and governance issues within the APVMA between 2019 and 2022, including a negative workplace culture and suggestions of potential industry capture that likely contributed to it "not performing its full regulatory responsibilities."

Mr Watt said the government would implement most of Mr Matthews 33 recommendations and promised alternative pathways to address identified problems related to those not supported.

This includes rejecting the report's recommendation to relocate the APVMA back to Canberra, to abolish its board and for it to be stripped of its independence and be placed within the Department of Agriculture, Fisheries and Forestry.

However, Mr Watt said the APVMA retaining its independent statutory status and board provided "the best assurance of regulatory independence" and was the most appropriate scenario for the agricultural sector to receive premium science-based agvet decisions.

"We want to ensure that we have the world's best chemical regulator, so that consumers and our overseas customers can have confidence in the food and fibre we produce," he said.

"At the same time, the APVMA needs to be structured so that it can independently and efficiently approve new, safe chemicals that help farmers do their job.

"This new, balanced approach is in stark contrast to the disproportionate focus on chemical approvals over compliance and enforcement which was driven by the (previous) Coalition Government."

Meanwhile, the decision to keep the APVMA in Armidale was made primarily to provide certainty to workers and the local community.

"The disruption and chaos caused by Barnaby Joyce when he forcibly relocated the APVMA to his local electorate put a massive strain on the staff at the regulator," Mr Watt said.

"And, according to the independent review, has had serious impacts on the performance and culture of the APVMA.

"We will not be making the same mistake."

The government however will revoke a previous order requiring Authority staff to be based in Armidale, bringing the organisation in line with all other Commonwealth agencies.

A number of APVMA staff members are already based away from Armidale.

That move seeks to overcome the APVMA's existing recruitment challenges in failing to convince preferred candidates to physically relocate to the key regional centre.

While a full response to all recommendations made by Mr Matthews is expected to be released by the government in mid-2024, CropLife chief executive Matthew Cossey joined agriculture sector stakeholders welcoming a "measured and considered" initial response.

"In particular, industry welcomes recommendations for increased Commonwealth funding to support the public good operations of the Regulator, including compliance and enforcement activities," he said.

He also said that Mr Watt had appropriately rejected recommendations that would have significantly disrupted the APVMA and reduced it to "an antiquated and overly bureaucratic entity" unable to meet compliance work targets.

Mr Cossey added that while CropLife was critical of the organisation's shift to Armidale, it supported it remaining in New England but was concerned staff could now freely relocate to Canberra for culture and cost reasons.

"Given that in just over 6 months, Canberra-based senior executives have incurred almost $57,000 in travel between offices, it's imperative that the future structure does not have inbuilt additional unnecessary costs to normal operations," he said.

The review noted the government had also recently put in place a Ministerial Statement of Expectations for the APVMA and ordered the expedition of eight long-running chemical reconsiderations.

"With new interim leadership, there is clear strategic direction outlined in the APVMA Strategy 2030, relationships between the Board and CEO are clarified with the updated Board Charter and improved engagement with their employees," it said.

GrainGrowers chief executive Shona Gawel said the situation was a welcome opportunity for the Authority to reestablish its robust regulatory credentials and ensure timely access to innovative products vital for industry, food security, economic stability and environmental sustainability.

"Our position is that we need a regulatory system that is free from commercial, political or ideological interference," she said.

"We also need a system that is independent and science-based. These elements in combination not only provide access to appropriate products but do so in a way that ensures integrity in the eyes of the public and our commercial trading partners."

Ms Gawel also said Australian grain growers were at a disadvantage due to the relatively small size of the Australian market and should not be further disadvantaged by underperformance of the regulator.

"Competitor markets, such as the OECD, United States and European Union, are each around seven times larger. Even now, our farmers are lagging behind or missing out on access to crop protection products used in those markets," she said.

Meanwhile, new data recently revealed a spike in processing delays at the Authority, with only 78.3 per cent of major pesticide applications completed within legislated timeframes for the quarter ending December 2023.

The unpublished performance data, contained in a Senate Estimates written APVMA response to a question on notice, was in stark contrast to the June quarter of 2022 when on-time assessment of pesticide applications was reported at 96.9pc.

In acknowledging grower concerns, Ms Gawel said registration delays had prevented some new products from hitting the market in time for the current season.

"The APVMA has been subject to significant public scrutiny over the past few months, and its performance record on product and permit approvals has slipped," she said.

"It is important that the organisation can now focus on developing a performance culture and improve on the delivery of its functions."

Meanwhile, National Farmers Federation chief executive Tony Mahar welcomed the government's response, saying it was imperative for the farming sector that the APVMA "gets back on track."

"Access to safe, effective, innovative technologies underpins agricultural productivity, sustainability and competitiveness," he said.

"Any reforms to the APVMA must seek to ensure a genuinely fit-for-purpose and efficient regulatory environment that manage risk without hindering access to safe technologies."

However, Nationals leader David Littleproud said while he was pleased the APVMA would remain in Armidale, he expressed concerns that allowing workers to be based in Canberra under new flexibility conditions for employees could see the Authority move by stealth to the nation's capital.