Maximum estimated 1.3 5.1 1.3 1.0 8.7 additional cost Internal reporting Minimum estimated 0.1 0.5 0.1 0.1 0.8 additional cost Maximum estimated 0.4 1.7 0.4 0.3 2.9 additional cost Total minimum estimated additional 1.4 5.1 0.8 0.9 8.2 administrative costs Total maximum estimated additional 4.2 17.0 4.5 3.3 29.0 administrative cost Midpoint for total estimated additional 2.8 11.1 2.6 2.1 18.6 administrative cost Delay costs Delay costs reflect the cost to businesses due to the delay in offering product for sale because of testing for compliance with regulation. Some direct and prolonged contact articles are seasonal and delays delivering product for supply mean the period where full prices can be charged (prior to end of season discounting) is reduced. As not all direct and prolonged contact articles are seasonal (e.g. underwear and socks) and therefore not subject to seasonal discounting and not all articles subject to seasonal discounting will be subject to delay costs because business are expected factor testing into delivery timelines, it is anticipated that only 3 per cent of articles tested will create delay costs. Based on discussion with business, it has been assumed that each delay due to testing will cost a business $2000. This estimate will vary depending on the price of each article and the size of the consignment, therefore delay costs may vary significantly from business to business. A8.6: Estimated additional delay costs in the first year of regulation (2015-16), $m
Maximum estimated additional cost 1.3 5.1 1.3 1.0 8.7 Internal reporting Minimum estimated additional cost 0.1 0.5 0.1 0.1 0.8 Maximum estimated additional cost 0.4 1.7 0.4 0.3 2.9 Total minimum estimated additional administrative costs 1.4 5.1 0.8 0.9 8.2 Total maximum estimated additional administrative cost 4.2 17.0 4.5 3.3 29.0 Midpoint for total estimated additional administrative cost 2.8 11.1 2.6 2.1 18.6 Delay costs Delay costs reflect the cost to businesses due to the delay in offering product for sale because of testing for compliance with regulation. Some direct and prolonged contact articles are seasonal and delays delivering product for supply mean the period where full prices can be charged (prior to end of season discounting) is reduced. As not all direct and prolonged contact articles are seasonal (e.g. underwear and socks) and therefore not subject to seasonal discounting and not all articles subject to seasonal discounting will be subject to delay costs because business are expected factor testing into delivery timelines, it is anticipated that only 3 per cent of articles tested will create delay costs. Based on discussion with business, it has been assumed that each delay due to testing will cost a business $2000. This estimate will vary depending on the price of each article and the size of the consignment, therefore delay costs may vary significantly from business to business. A8.6: Estimated additional delay costs in the first year of regulation (2015-16), $m
Draft%20Regulation%20Impact%20Statement%20%20Options%20to%20limit%20consumer%20exposure%20t....docx