4.5.2 Cost to government
Total cost of Option 2 to government is for the licensing framework for work with legacy productsestimated to be $ 107.5 million over the appraisal period ( see Section 4.3.2 ).
Table 12 Estimated cost of Option 2 – government
Cost Estimated cost – 10-year appraisal period ($ m ) Licensing framework for work with legacy products Drafting of national licensing regulation $ 0.2 Licensing software $ 9.2 Processing of licence applications $ 11.5 Compliance and monitoring / enforcement $ 85.1 Communication costs $ 1.5 Total $ 107.5
4.6 Option 3 monetised costs
In addition to the prohibition on the use of higher silica engineered stone proposed in Option 2 , Option 3 also outlines an additional licensing framework for PCBUs working with lower silica engineered stone (< 40 % crystalline silica content ). Under this option there are additional estimated costs to PCBUs , government and workers .
4.6.1 Costs to PCBUs
Under Option 3 , costs to PCBUs are estimated to be $ 137.1 million over the appraisal period , as shown in the table below . Estimated costs are higher than Option 2 for 2 main reasons :
� the administrative costs to engineered stone PCBUs of applying for ( and renewing ) a licence to work with lower silica engineered stone , and participating in compliance inspections , and
� some engineered stone PCBUs are expected to close , or pivot to non-stone products , as a result of the additional cost and administrative burden of a licensing scheme to work with lower silica engineered stone .
Table 13 Estimated cost of Option 3 – PCBUs
Cost Estimated cost – 10-year appraisal period ($ m )
Engineered stone PCBUs
Business exit and switching costs
Sole traders
Small Medium Total
Business closure costs $ 0.1 $ 0.1 $ 0.02 $ 0.3 6 Redundancy payments $ 0.0 $ 0.0 $ 1.7 $ 1.7
Licensing framework for work with lower silica engineered stone
6
Reflects rounding of summed numbers
DECISION REGULATION IMPACT STATEMENT Prohibition on the use of engineered stone Page 40 of 107