Thank you.
Good evening, everyone.
I would like to thank the committee for the opportunity to appear before you today.
My name is Celia Lourenco. I am the associate assistant deputy minister of the health products and food branch at Health Canada. I'm joined by Dr. Supriya Sharma, chief medical adviser at Health Canada, and Linsey Hollett, assistant deputy minister of the regulatory operations and enforcement branch.
Natural health products, or NHPs, such as vitamins, minerals and herbal remedies, are used daily by Canadians to maintain and improve their health. These products are regulated under the natural health products regulations, which were established nearly two decades ago in response to a study undertaken by this very committee. The regulations take into account the lower risk profile of these products and their ability to make health benefit claims.
Since that time, Health Canada has estimated there are over 200,000 products available to Canadians on the market. Our highest priority is to ensure that Canadians have access to safe, high-quality products to help care for themselves and their families.
While progress has been made over the past 20 years, the 2021 audit by the Commissioner of the Environment and Sustainable Development found significant gaps in oversight, underscoring the need for more action. This includes the need for increased oversight of the quality of natural health products, improved product labelling, greater monitoring of labels and advertising, and introducing a proactive risk-based inspection program.
Following the audit, Health Canada made firm commitments to strengthen its oversight of natural health products, as we discussed last year with several of your colleagues at the Standing Committee on Public Accounts.
While NHPs are often perceived as lower risk, they are not without risk, especially if products contain contaminants or are used improperly. When Canadians reach for a product,it is essential that they have confidence in its safety. They also need to be able to trust that what's on the label accurately represents what's inside the bottle, and that the health claims the product makes are truthful.
Health Canada recently conducted a pilot to proactively search the web and identify potential instances of non-compliant advertising. The equivalent of 3,800 advertising incidents were identified, and our assessment confirmed that 2,070 made cancer claims not permitted by Health Canada.
Furthermore, when we looked at the NHP marketplace between 2021 and 2023, there were 100 voluntary recalls of licensed NHPs for safety issues.
Additionally, Health Canada launched a pilot inspection program between March 2021 and March 2022 during which 36 sites of manufacturers and importers were inspected for good manufacturing practices. The pilot revealed issues ranging in severity at all sites, reinforcing the need for a permanent inspection program.
These gaps are why we are making changes to improve the safety of NHPs. Last year, Health Canada introduced new labelling regulations to help ensure that consumers have the information they need when choosing products.
This year, new legislation was passed to allow Health Canada to act on serious safety issues like ordering recalls or requiring warnings on labels if a company doesn't take action voluntarily.
More recently, Health Canada completed open and transparent consultations, garnering close to 5,000 responses, on a proposal that would see industry pay fees so that the department can, among other things, inspect manufacturing sites to improve product quality and safety.
The regulatory activities currently conducted by Health Canada in overseeing NHPs are currently paid for fully by taxpayers. In comparison, regulatory services for all other health products are funded through a mix of service fees and public funding.
If Health Canada does not charge fees for its services, the department is unable to strengthen its oversight of NHPs. While NHPs undoubtedly offer public health benefits, they also benefit private enterprises that make up the multi-billion dollar industry for these products. Ensuring sustainable funding of the oversight of NHPs while preserving accessibility and quality requires balancing taxpayers' contributions and industry's contributions more equitably.
We understand that many small businesses worry about the additional cost new fees would bring, and about their ability to continue marketing their products to Canadians. This is why we are proposing significant mitigation measures, such as meaningful fee reductions and waivers for small businesses.
As we complete the review of the thousands of comments received on our recently concluded consultation, we are considering how best to adjust our proposed approach to address the many concerns raised prior to further engagement with stakeholders.
In closing, Mr. Chair, we have a commitment to Canadians to ensure that the natural health products they rely on every day to maintain and improve their health are safe, and we have a plan to do just that.
We will now be pleased to answer any questions you may have.