NO.002

JOINT PRESS RELEASE

TREASURER & MINISTER FOR INDUSTRY, TOURISM AND RESOURCES

PRODUCTIVITY COMMISSION TO EXAMINE AUSTRALIA’S STANDARDS AND LABORATORY

ACCREDITATION BODIES

Treasurer Peter Costello , and the Minister for Industry, Tourism and Resources,

Ian Macfarlane MP, today announced that the Productivity Commission will undertake

a research study into the Australian Government’s relationship with Standards

Australia Limited and the National Association of Testing Authorities, Australia

(NATA).

The Government enjoys close relationships with Standards Australia and NATA

and recognises them as Australia’s peak bodies in standards development

and laboratory accreditation respectively.

Both are private sector, not-for-profit organisations and receive funding from

the Government to represent Australian interests in key international standards

writing and conformity assessment forums.

The Treasurer said the study would help to define the appropriate role for

the Australian Government in standard setting and laboratory accreditation,

and funding of related activities.

Minister Macfarlane said that the review of the relationships is timely, as

it has been more than ten years since the last inquiry. ‘This study will

look at the history of the relationship between the Australian Government and

these organisations, the cost impact on and benefits to business and the wider

community of standards, including in regulation, and models in operation overseas.’

The Commission is to publish its report by November 2006.

The terms of reference for the study are attached.

Further information on the study can be obtained from the Productivity Commission’s

website at

www.pc.gov.au or by contacting

the Commission directly on (02) 6240 3239.

2 February 2006

Media Contact:

David Alexander

Treasurer’s Office

02 6277 7340

Kirsty Boazman

Minister Macfarlane’s Office

0412 171444

Terms of Reference

REVIEW OF AUSTRALIAN GOVERNMENT’S RELATIONSHIP WITH STANDARDS AUSTRALIA

LIMITED AND THE NATIONAL ASSOCIATION OF TESTING AUTHORITIES, AUSTRALIA

Productivity Commission Act 1998

THE PRODUCTIVITY COMMISSION IS REQUESTED TO UNDERTAKE, IN THE CONTEXT OF AUSTRALIA’S

NEED FOR AN EFFECTIVE AND INTERNATIONALLY RECOGNISED AND HARMONISED STANDARDS

AND CONFORMANCE INFRASTRUCTURE, A RESEARCH STUDY REVIEWING THE AUSTRALIAN GOVERNMENT’S

RELATIONSHIP WITH STANDARDS AUSTRALIA LIMITED AND THE NATIONAL ASSOCIATION OF

TESTING AUTHORITIES, AUSTRALIA.

In undertaking the study the Commission is to examine and make recommendations

on:

1. the efficiency and effectiveness of standards setting and laboratory accreditation

   services in Australia;

2. the appropriate role for the Australian Government in relation to standard

   setting and laboratory accreditation;

3. the appropriate terms for Memoranda of Understanding between the Australian

   Government and its agencies and Standards Australia Limited and the National

   Association of Testing Authorities, Australia; and

4. the appropriate means of funding activities of Standards Australia Limited

   and the National Association of Testing Authorities, Australia, which are

   deemed to be in the national interest.

In preparing the report, the Commission is to have regard to:

• the history of the relationship between the Australian Government and bodies

  that prepare standards and accredit laboratories;

• the cost impact on and benefits to business and the wider community of

  standards, including in regulation; and

• models in operation overseas.

The Commission is required to provide a final report within 9 months of receipt

of this reference.

The report is to be published.

PETER COSTELLO