4 . What is the likely impact of the options ?
4 . What is the likely impact of the options ?
4.1 Overview of approach
This Decision RIS has taken the following approach to the impact analysis : � � � � options have been assessed relative to the base case where information is available , costs to industry and government have been monetised health benefits have been qualitatively assessed for each option , and
breakeven analysis has been undertaken to show the number of avoided deaths and illnesses required to offset the costs of each option .
A detailed methodology to the impact analysis can be found in Appendix B . An overview of the approach used is provided in Table 4 .
Table 4 Impact analysis approach
Stages Define the market
Identify impacts
Identify costs
Assess costs
Undertake breakeven analysis
Description
� Conduct a current state analysis of the engineered stone industry – identifying the number of PCBUs by size ( e . g . sole trader ), the number of workers working with engineered stone , uses of engineered stone and alternative products to engineered stone available to consumers .
� Determine the decisions the engineered stone industry is expected to make ( specifically PCBUs and workers ) as a consequence of each prohibition option .
� Conduct analysis to identify the costs to PCBUs and workers from a prohibition on engineered stone ( e . g . costs of complying with license requirements and business closure costs ).
� Define the cost to government associated with a prohibition on the use of engineered stone including costs to implement a licensing framework , processing of licensing applications and compliance audits .
� Estimate the costs to PCBUs , workers and government associated with each proposed prohibition option .
� Calculate the level of monetary benefits required for each of the options to break even .
� Convert the monetary benefits into the required avoided number of deaths and illness to provide a meaningful comparison .
4.1.1 Impact analysis framework
Guiding the impact analysis , the framework at Figure 4 summarises the impacts of a potential prohibition across all sectors of the economy – including PCBUs , workers , consumers , government and the broader community . For each group , the framework shows the direct and indirect benefits and costs , and measures of those impacts , including whether those impacts were subject to qualitative , quantitative or breakeven analysis .
DECISION REGULATION IMPACT STATEMENT Prohibition on the use of engineered stone Page 29 of 107