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


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A4.21 – Incremental cost of spatial and shade requirements – S3.6, S3.7 and S5.2 (Koalas)

Under Clauses S3.6 and S3.7 the operator must ensure koala enclosures meet the minimum floor area requirements specified. Proposed standard S3.6 would be relevant for all jurisdictions except for Qld where existing codes already specify these requirements under the base case for mixed-sex enclosures. Proposed standard S3.7 would be relevant for all jurisdictions except for NSW.


The implication of proposed standard S3.6 is that 50% of non-compliant192 non-walkthrough display enclosures in medium size facilities, except for QLD would be involved in breeding activities and therefore would need to increase the perimeter of fencing by 25% (i.e. an additional 12sqm of area for a standard mixed-sex enclosure or 13.86 additional metres193 for the perimeter). This would entail additional fencing costs @ $49.21 per metre and labour costs @ $100 (for 2hrs work) per non-walk through enclosure. This would make the total one-off cost of this requirement for relevant enclosures equal to $781.87.
The implication of proposed standard S3.7, is that for the 12.5% of non-compliant non-walkthrough display enclosures, excluding NSW, this would involve moving or removing fencing at a rate of $50 per hour for 2hrs of labour time (i.e. $100 per non walk through enclosures). That is to say, the operator would have the option of combining enclosures to ensure that the minimum floor area requirements are met (i.e. removing fences) or moving fences.
Furthermore, under proposed standard S5.2 the operator would be required to ensure that all koalas within an enclosure are able to simultaneously access shade at all times. For 5% non-compliant non-walkthrough display enclosures apart from NSW, this would involve putting in a shade tree at around $250 (average cost of an advanced 2.5m tree) plus 4hrs labour at $50.42 given a one-off cost of $300.42.
Therefore, the cost of Clauses S3.6, S3.7 and S5.2 per jurisdiction would be:


  • $400.42 per non-compliant large and medium enclosure in QLD (i.e. affected by Clauses S3.7 and S5.2 only);

  • $781.87 for 50% of non-compliant enclosures in medium size facilities in NSW (i.e. affected by proposed standard S3.6 only); and

  • $400.42 per non-compliant large and medium enclosure in all jurisdictions (except NSW) and $781.87 for 50% of non-compliant enclosures in medium size facilities in all jurisdictions (except QLD).

The estimated one-off cost of providing for spatial and shade requirements under Clauses S3.6, S3.7 and S5.2 would be $11,352, as shown in Table A4.37.


Table A4.37: Estimated one-off cost of providing spatial and shade requirements for koalas194

Jurisdiction

Cost to large facilities

(x5) = (t)195*12.5%*$400.42 or (t)*0%*$300.42 for NSW


Cost to medium facilities

(y5) =

(t)*12.5%*$400.42 + (t)*12.5%*50%*$781.87

or

(t)*12.5%*$400.42 + (t)*0%*50%*$781.87 for QLD

or

(t)*0%*$400.42 for NSW +(t)*12.5%*50%*$781.87 for QLD

Total cost to all facilities

(a6) = (x5)+(y5)

NSW

$0

$1,955

$1,955

VIC

$110

$2,846

$2,956

QLD

$110

$1,545

$1,656

SA

$110

$347

$457

WA

$110

$2,707

$2,817

TAS

$110

$764

$874

NT

$110

$347

$457

ACT

$110

$69

$180

Total one-off cost (Australia)

$771

$10,581

$11,352

As shown in Table A4.38, the estimated one-off cost of providing spatial and shade requirements for koalas over 10 years would be $10,609 in present value 2012-13 dollars with 86.93% of the cost incurred by medium size facilities - particularly in VIC, QLD and WA.



Table A4.38: Estimated one-off cost of providing spatial and shade requirements 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

$1,827

$1,827

VIC

$103

$2,660

$2,763

QLD

$103

$1,444

$1,547

SA

$103

$324

$427

WA

$103

$2,530

$2,633

TAS

$103

$714

$817

NT

$103

$324

$427

ACT

$103

$65

$168

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

$720

$9,889

$10,609

% share of one-off cost

6.79%

93.21%

100.00%

One-off cost PV - 3% discount sensitivity

$748

$10,273

$11,021

One-off cost PV - 10% discount sensitivity

$701

$9,619

$10,320



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