this is influenced by the level of competition throughout the supply chain for kitchen and bathroom benchtops and similar products .
Under Options 2 and 3 , there may also be an increase in the price of lower silica engineered stone due to :
� additional costs associated with licensing arrangements ( Option 3 ) �
� these products can take longer to fabricate , and it is expected that engineered stone PCBUs would need to pass these higher production costs on to consumers
manufacturers may seek to recoup the cost of developing these new products , and
� potentially reduced competition in the market due to a small increase in the barriers to entry . Nevertheless , there are several providers of lower silica alternatives ( see section B . 1.1 ).
This impact will depend on the level of competition throughout the supply chain for benchtops and similar products . Where price increases are driven by a higher production costs , rather than variation in demand , the increased price will likely be persistent .
4.7.3.2 Potential increased price for removal , repair or modification of previously installed engineered stone
Under the prohibition options , there may be some upward pressure on the price paid by consumers when engaging a tradesperson to undertake removal , repair or modification of engineered stone already installed in their home or workplace . This would be due to other industry PCBUs passing on the costs they incur under the licensing framework for work with legacy products ( including any passed on to PCBUs by governments ) and decreased competition should the number of PCBUs willing to obtain a licence to do this work decrease .
4.7.3.3 Other impacts on consumers
The prohibition options would lead to a decrease in the choice of material for kitchen and bathroom benchtops and similar products . While there are various alternatives to engineered stone , the alternatives have different properties and price points relative to engineered stone :
�
Under Option 1 , the prohibition on the use of all engineered stone would reduce the range of pricequality combinations for kitchen and bathroom benchtops and similar products .
�
Under Option 2 and 3 , a prohibition on the use of engineered stone with 40 % or more crystalline silica content would reduce the choice in engineered stone products and potentially increase the price ( see section 4.7.3.1 ). In both cases , however , there are numerous alternative products and the market is expected to continue to innovate .
4.7.4 Costs to the community 4.7.4.1 Economic growth
No negative impacts on economic growth are expected from any of the options . There may be a small positive impact on GDP if locally produced products replace imported engineered stone products .
4.7.4.2 Environmental impacts
All options may have some level of environmental impact if PCBUs are unable to sell unused engineered stone stock and must dispose of it instead .
DECISION REGULATION IMPACT STATEMENT Prohibition on the use of engineered stone Page 46 of 107