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Dental Industry Red Tape Index Climbs Again

Announcement posted by Australian Dental Industry Association 01 Oct 2015

According to a recent survey conducted by the Australian Dental Industry Association (ADIA), Australia's manufacturers and suppliers of dental products are facing higher regulatory compliance costs.

Notwithstanding the commitment of the Australian Government to cut red tape, manufacturers and suppliers are facing higher regulatory compliance costs.  That’s the finding of the latest edition of the Australian Dental Industry Red Tape Index compiled by the Australian Dental Industry Association (ADIA).

“The Australian Government’s commitment to reducing the red tape faced by small business is commendable; however, this is not translating into lower compliance costs for manufacturers and suppliers of dental products,” said Troy Williams, ADIA Chief Executive Officer.

The most recent survey to produce the data that’s reflected in the Australian Dental Industry Red Tape Index covers the fourth quarter of FY2014-15. It produces an index reading of 62.2 which indicates a moderate increase in red tape compared to the previous quarter.

“This result was hardly surprising in circumstances where the Therapeutic Goods Administration, in changing the way it charges businesses for its services, has significantly increased costs for the dental industry.  The irony is this increase in costs was a botched attempt by the regulator to cut red tape,” Mr Williams said.

ADIA is hopeful that the independent review of medicines and medical device regulation will result in a reduction in red tape experienced by the dental industry.  The panel that undertook the review tendered its report in March 2015; however, the Minister for Health has yet to tender a response.

“Clearly, there is a need to reform the regulatory framework for the approval of dental products and other medical devices.  When the Therapeutic Goods Administration is able to get away with increasing the charges it levies the dental industry and yet claims that it is working to reduce red tape, it is evident something is amiss,” Mr Williams said.

ADIA member businesses supply more than ninety-five per cent of the products used by dental professionals and each quarter these businesses are surveyed to ascertain whether compliance costs have increased, stayed the same or reduced.  This produces an index between 0 to 100; when the index figure is 0 there has been a universal reduction in red tape and, conversely, when the index figure is 100 there has been a universal increase in red tape.  An index figure of 50 means that there is equilibrium between businesses reporting a reduction in red tape and businesses reporting an increase.

For more information on the Australian Dental Industry Red Tape Index visit the website at:
www.adia.org.au/statistics/red-tape

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