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PROPOSAL TO REVISE ENERGY EFFICIENCY REQUIREMENTS OF THE BUILDING CODE OF AUSTRALIA FOR COMMERCIAL BUILDINGS 91
Results of the AWA analysis show that the proposed changes are not
likely to reduce competition in this industry. In particular, the study shows
that:
• there will be minimal withdrawal from the industry as a result of the
proposed BCA changes (95.3 per cent of the survey respondents said
they will continue in the industry if demand for double glazed window
and door products increases to 75 per cent);
• most fabricators have access to products that perform according to the
increased energy efficiency stringency proposed in the BCA; and
• while some products need to be redesigned to meet the new BCA
requirements, the industry is capable of doing most of the redesign
work required, and this work can be completed within 18 months.
While the AWA study sheds some light into the likely impacts on
competition in the windows and glass industry, further information is
required to assess the likely competition effects on other industries
affected by the BCA changes (including the construction industry). 33 In
this respect, the consultation process that will follow the release of this RIS
can serve as a good opportunity to overcome some of these gaps in
knowledge and gather information about the extent to which the proposed
changes will impact the market structure of other relevant industries.
Despite the potential effects on competition in industries other than the
windows and glass industries highlighted above, the analysis conducted
for this RIS shows that:
• the community benefits of proposed changes to the BCA outweigh the
costs. In particular, this RIS demonstrates that every one dollar of costs
generates 2.05 dollars of benefits to the community; and
• from the range of viable policy options identified in Chapter 3, the
proposed regulatory option (an amended BCA) is the best way of
achieving the government objectives.
Therefore, the proposed changes to the BCA are considered to be
consistent with the Competition Principles Agreement outlined in COAG
(2007).
33 For instance, the ability of builders to understand and apply the changes needs to be
evaluated.
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