OPINION> FROM THE CHINESE PRESS
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OPINION> FROM THE CHINESE PRESS
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Higher penalty, safer food
(China Daily)
Updated: 2009-06-02 07:44
Although penalties for illegal practices in food production and distribution have been increased in the new Food Safety Law, the provisions are still too lenient to be an effective deterrent to law-breakers, says an article in Guangzhou Daily. Excerpts: According to the new Food Safety Law effective from June 1, consumers affected by unsafe, substandard and adulterated food products can claim compensation up to 10 times the price of the product. The authorities believe that the increased compensation levels will raise the cost of illegal practices, which will effectively prevent such malpractices in the food industry and business. A highlight of the new Food Safety Law is that the maximum fine has been increased from 50,000 yuan to 100,000 yuan, and from five times of the income on an unsafe product to 10 times the price of the product. However, as the upper limit of fines, 100,000 yuan cannot be an effective deterrent to violators. Take the melamine scandal, for example. The maximum fine of 100,000 yuan is trivial compared to the Sanlu Group's annual production value of over 10 billion yuan. Given that the price of food items consumed is always small, it is not a big amount even if an affected consumer claims the maximum compensation permissible. Therefore, it can hardly be effective in thwarting production and distribution of unsafe food. Many other countries have more stringent provisions when it comes to food safety. In one case, a German food company had to pay more than 10 million euros as compensation to those affected by consuming its contaminated milk powders. If our authorities can establish more severe punishment standards with a tough compensation regime - where the cost of potential punishments exceeds the likely profits from the illegal practices - the higher risk may prevent enterprises from producing and selling adulterated and poor quality products.
(China Daily 06/02/2009 page8) |
