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GM Food Safety and Producer Liability Bill
(presented to the House of Commons on 24 June 1999 by Mr Alan Simpson, MP)

Explanatory memorandum

Clause 1 requires the Secretary of State to apply the precautionary principle when deciding to grant consents to release genetically-modified organisms (GMOs), and to ensure that the rules applying to the safety assessments for medicines guide him when he is deciding the rules for GM safety assessments.

Clause 2 makes both the companies releasing GMOs, and their directors personally, legally liable without proving fault, for damage caused by the release. The only defences will be an exceptional Act of God or for those directors who can prove that they did everything in their power to prevent the release. Liability extends to environmental damage, and the court can take into account company profits and directors' salaries in deciding the damages they should pay.

Clause 3 defines damage. Examples of damage covered by the Bill include:

• personal injury and property damage, such as: cross-pollination of neighbouring non-GM or organic crops; problems arising from herbicide resistant crop volunteers; spread of resistance in weeds and pests; spread of antibiotic or viral resistance; the formation of new toxins in animal and human food; the development of new allergies due to the presence of novel proteins;
• financial loss caused by: the failure of crops; a reduction in property values; farmers' inability to use land for non-GM crops in areas where contamination from GM crops has occurred or is possible; the loss of organic status; GM contamination of honey; or having to make compensatory payments to people such as food processors and beekeepers who have been wrongly given guarantees that the crop in question is GM-free; and
• the cost of protecting the environment, and in remedying, rectifying or preventing environmental damage (including, for example, the cost of re-introducing species and biodiversity reduced or lost; the cost of remedying damage to soil micro- and macro- organisms due to changes in the pesticide regime; and the cost of gathering base-line and post-release monitoring data).

Clause 4 puts the burden of proof on the companies and directors, not the victims, and ensures that victims do not lose out simply because they cannot prove that any specific company caused the damage.

Clause 5 ensures that food manufacturers, processors, retailers, animal food manufacturers and farmers will be compensated (indemnified) by the biotechnology industry if they are sued for causing damage as a result of growing GM crops or marketing etc. GM food.

Clause 6 requires biotechnology companies and their directors personally to take out insurance policies against their liability to pay compensation.

Clause 7 establishes a GMO Compensation Fund, to be contributed to by the industry, which will pay out compensation when liability cannot be attributed to an identifiable company or director.