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Proposed Australian Animal Welfare Standards and Guidelines – Exhibited Animals Consultation Regulation Impact Statement March 2014


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A4.19 – Incremental cost of enclosure furniture - S3.3 (Koalas)


Under proposed standard S3.3, the operator must ensure a minimum of two resting forks, one at least 1800 mm above the ground and one at least 1500 mm above the ground, are provided for each independent koala in an enclosure. A holding enclosure containing a single koala is exempt but must contain a minimum of one resting fork unless otherwise prescribed by a veterinarian.
This would apply to 5% of non-compliant display and holding enclosures except for NSW and QLD where this requirement exists under the base case (see NSW standards 8(1)(i); QLD code 2(i)). For the purpose of estimation it is assumed that a resting fork would be around $200183 each including about 1 hour of labour cost to install. Moreover, it is assumed that there would be 2 forks needed per display enclosure (i.e. $400) and 1 fork needed per holding enclosure (i.e. $200).
The estimated one-off cost of providing resting forks under proposed standard S3.3 would be $5,026, as shown in Table A4.33. This estimation notes that small facilities typically do not have koala enclosures and with respect to large facilities it is quite likely the cost will be negligible as most would be meeting this requirement.

Table A4.33: Estimated one-off cost of providing enclosure furniture for koalas184


Jurisdiction

Cost to large facilities

(p5)= (t)185*5%*$400

+(t)186*5%*$200

Cost to medium facilities

(q5)=

(t)*5%*$400

+(t)*5%*$200

Total cost to all facilities

(s5) = (p5)+(q5)+(r5)

NSW

$0

$0

$0

VIC

$98

$1,784

$1,882

QLD

$0

$0

$0

SA

$98

$218

$316

WA

$98

$1,697

$1,795

TAS

$98

$479

$577

NT

$98

$218

$316

ACT

$98

$44

$142

Total one-off cost (Australia)

$588

$4,438

$5,026

As shown in Table A4.34, the estimated one-off cost of providing enclosure furniture for koalas over 10 years would be $4,697 in present value 2012-13 dollars with 88.3% of the cost incurred by medium size facilities - particularly in VIC and WA.

Table A4.34: Estimated one-off cost of providing enclosure furniture for koalas by state and territory and size of facility over 10 years – 2012-13 dollars


Jurisdiction

Large Facilities

Medium Facilities

Total Facilities

NSW

$0

$0

$0

VIC

$92

$1,667

$1,759

QLD

$0

$0

$0

SA

$92

$203

$295

WA

$92

$1,586

$1,677

TAS

$92

$447

$539

NT

$92

$203

$295

ACT

$92

$41

$132

Total one-off cost (Australia) PV - 7% discount

$550

$4,148

$4,697

% share of one-off cost

11.70%

88.30%

100.00%

One-off cost PV - 3% discount sensitivity

$571

$4,309

$4,880

One-off cost PV - 10% discount sensitivity

$535

$4,034

$4,569



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