Calls for better halal regulation: Senate

There is nothing to prove halal products fund terrorism, a Senate committee has found, but some certifiers are just dodgy.

The committee has called for better regulation of the system, including clearer labelling and government intervention, in its long-awaited report into food certification.

While the inquiry looked into various forms of certification, it said it had been overwhelmed by feedback from members of the public concerned about halal products.

Some feared halal certification would impose sharia law on Australians and a significant number speculated about a link with terrorism.

But the committee said it would rely on advice from the government's financial intelligence arm, Austrac, that no such direct link existed.

Nor did the proliferation of halal foods mean the spread of Islam, it said.

But outspoken Liberal senator Cory Bernardi says the report doesn't go far enough, telling parliament the level of corruption in the industry appeared to be "quite strong".

He's submitted additional comments about the "potential for halal certification funds to find their way to radicals".

Senator Bernardi said there was evidence halal certifiers were providing funds to charities that support terrorist organisations and domestic extremism.

"If I can get that through a Google search, I wonder why Austrac ... can't be bothered to put it together themselves," he said.

"If we want to cut the head off the Hydra that is extremism in this country, we've got to identify where the funding for it comes from."

Former committee chair Sam Dastyari said under-regulation allowed "questionable" conduct from "questionable" certifiers.

"There are certifiers who are nothing more than scammers," the Labor senator told parliament.

The committee has called for halal products to have one clear trademark, one overall certifier body and the government to step in and monitor the scheme.

It said consumers should have enough information to make whatever choice they felt appropriate, whatever their preferences or prejudices.

But it implored consumers not to resort to abusive behaviour in expressing their displeasure to companies that chose to certify products halal.

Senator Dastyari said the inquiry had encountered plenty of xenophobia, barely concealed under the guise of freedom of choice and freedom from religion.

"I'm sure I speak for all senators and their staff, when I reiterate that we do not appreciate being directly confronted by those types of extreme views."

HOW COMMITTEE SAYS HALAL CERTIFICATION SHOULD CHANGE:

* Government monitor compliance of halal certification to ensure domestic products comply with export standards.

* Halal certification industry establish a single certification authority and a single national registered trademark.

* All food products should be clearly labelled.

* Government consider requiring certification bodies to register their operations under certification trademarks.

* A single trademark would help indicate that a product was of a particular qualify or met certain standards.