Genetically modified organisms – who’s liable?
With suspect corn on Japanese pizzas under the scientific and media microscope, what better time to discuss GMO
liability.
Victoria University Economics Masters student, Stephen Hutton, will raise the liability issues of genetic modification
on Wednesday in a seminar hosted by the University-based New Zealand Institute for the Study of Competition and
Regulation. Mr Hutton is also a research assistant in the ISCR.
His presentation considers the role of liability in providing incentives to reduce risk associated with GMO accidents.
The moratorium on GMOs is scheduled to be lifted on 29 October, 2003.
“The issue of GMOs has been one of the most controversial and polarising political issues for many years,” Mr Hutton
says.
“It now seems clear the Government will allow some GMO release, so the focus of the debate should move to the
institutional system in which this release occurs.
“One aspect of this system is the liability regime, which determines under what circumstances users of GMOs are liable
for damages caused by any GMO accidents.
“Under current law, GMOs will generally be covered by a negligence regime, but this may not be the best system.”
Mr Hutton says GMOs may have the potential to cause accidents that inflict damage on third parties such as crop
contamination.
“In an unregulated market without liability, companies conducting genetic modification would have little incentive to
take costly precautions to reduce the probability or severity of accidents.”
Mr Hutton’s presentation is based on his final Masters thesis. In late July he departs Victoria University to begin his
PhD studies in the University of Maryland’s economics programme.
Media are welcome to attend the seminar on Wednesday 16 July, 6pm-7pm, Lecture Theatre 2, Government Buildings, Lambton
Quay.