B . 7.2 Decision tree outcomes : Option 1
Table 22 Decision Tree Outcomes – Option 1 – engineered stone PCBUs
Decision
Continue operating with alternative products
Impact
Purchase new equipment to switch to nonstone product ( e . g . laminate 53 )
Proportion of population Sole trader Small Medium
Rationale
0 % |
0 % |
5 % |
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Almost all engineered stone PCBUs ( 95 %) that responded to the consultation on the Prohibition Decision RIS indicated that they worked with both engineered stone and natural stone products . For this reason , it is expected that almost all engineered stone PCBUs would transition to natural stone . |
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Only a small proportion of businesses are expected to switch to alternative products such as wood or laminate , as these products are typically installed by other trades such as cabinet makers and specialist kitchen companies . 54
The decision to work with alternative products depends on the cost of the equipment and training needed to switch to alternative products relative to the demand for these products .
Medium sized businesses are likely to more easily access the capital required to invest in new equipment , processes and training .
As per the Silica Decision RIS , if sole traders and small businesses need to purchase new equipment to operate with alternative products , then it is assumed they would cease to operate .
53
Caesarstone submission : within the benchtop market , engineered stone represents about 55 % of the Australia market by volume and 63 % by value , followed by laminate at 29 % and 18 % respectively , and granite at ~ 4-5 %.
54
As noted by Ai Group in its submission , if a business is predominantly operating as an engineered stone PCBU , it is unlikely to turn to wood as an alternative and would be more likely to continue to operate with natural stone . It is most likely that other businesses would be pick up the additional demand for alternative products . Similarly , Caesarstone considered that the prohibition of engineered stone would lead to significant business closures as consumers moved to alternatives such as laminate . However , consultation submissions indicated some engineered stone PCBUs also manufacture and install types of benchtop such as laminate .
DECISION REGULATION IMPACT STATEMENT Prohibition on the use of engineered stone Page 84 of 107