February 4, 2003

A proposal included in the 2004 federal budget for USDA to impose user fees on food processing facilities regulated by the department is opposed by the National Food Processors Association (NFPA) as "a tax on food production."

"User fees are, in reality, new and regressive federal food taxes," said John Cady, NFPA's President and CEO. "Because there is no clearer example of a fundamental government function that broadly benefits society than regulating the safety and soundness of the food supply, this regulation should be paid for from appropriated funds."

"In the past, the food industry and representatives from the consumer community have expressed concern that regulatory taxes to fund food safety programs would undermine consumer confidence in our nation's food safety system," Cady pointed out. "Changing to an industry-financed system would create public misunderstanding and confusion regarding the integrity of food safety programs -- a view held not only by NFPA but by most consumer organizations as well."

"Congress has wisely rejected past attempts to impose regulatory taxes on the food industry to fund food safety programs," Cady concluded. "NFPA and the food processing industry have long supported providing the agencies that regulate food safety with a level of funding that enables them to perform this crucial mission effectively. We will urge the Administration to drop from any further consideration the imposition of this new food tax on our industry, and we will urge Congress to fully fund food safety regulatory efforts through general appropriations."

NFPA represents the food processing industry on scientific and public policy issues involving food safety, food security, nutrition, technical and regulatory matters and consumer affairs.