Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697635596358.pdf (Australia)
Standards Australia Limited August 2015 Standards Australia Submission: Senate Economics References Committee Inquiry into non‐conforming building products August 2015 1 Non-conforming building productsSubmission 45 Standards Australia Limited August 2015 Introduction Standards Australia welcomes the opportunity to provide a submission to the Senate inquiry on non‐conforming building products in Australia.
Our response to the terms of reference is limited to matters of relevance to us as:  Australia’s peak standards development body;  The Australian member of ISO and IEC, two of the three International Standards bodies.

Key Points  Standards Australia works with industry, government and community interests to develop and adopt voluntary, consensus‐based Australian standards for the building and construction sector.
 Australian Standards play an important role in the regulatory and conformance framework for the building, electrical and construction industries.

 The decision to use (or ‘reference’) Australian Standards for regulatory purposes is made by  governments.
It is not the role of Standards Australia to ensure compliance of products with Australian Standards, however Standards Australia can contribute by providing clear rules for the development of standards, including compliance requirements where necessary provided they are supported by industry and government.

 The regulatory and compliance regimes of the Commonwealth, States and Territories are complex.
 Distinction must be made between non‐conforming building products and the non‐  compliant use of building products.

Increasing community awareness of standards can help industry and consumers make informed purchasing decisions.

About Standards Australia Standards Australia is an independent, not‐for‐profit, member‐based, standards development organisation.

Our members include the Commonwealth, State and Territory governments, peak industry associations and community groups.
We are recognised by the Commonwealth as Australia’s peak non‐government standards development body through a Memorandum of Understanding (MOU).

We are Australia’s member of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC).

We hold positions on the technical management boards of both ISO and IEC.

Australian Standards are developed (and adopted) through a process of consensus and broad stakeholder consultation.
All project work undertaken by us must demonstrate a Net Benefit to the Australian community.

2 Non-conforming building productsSubmission 45 Standards Australia Limited August 2015 Over the last 10 years, Standards Australia has undergone significant organisational transformation.
The 2006 Productivity Commission Report made a number of key recommendations which have been implemented by Standards Australia including:  A robust and transparent project proposal process to ensure that standards developed including government and are necessary, supported by stakeholder groups demonstrate a Net Benefit to the Australian community;  A considerable investment in an organisational transformation program which has seen: o Significantly greater alignment with government, consumer and industry o priorities in the work that we do; Increased attention development activities; to and alignment with international standards o A substantial reduction in the average project delivery time, providing a investments provided by all in‐kind significantly greater return to the stakeholders, including government; o A strong focus in assisting in the development of cost benefit analysis for standards referenced in regulation, particularly the National Construction Code; o Applying organisational capital to policy and executive committees in international standards bodies specifically the ISO and IEC.
 A focus on ensuring that Australian Standards meet government, industry and community expectations.
It is also important to note that Standards Australia’s Memorandum of Understanding with the Commonwealth provides that: “Standards Australia will divest itself of any certification interests including any proprietary interest in the Watermark certification mark and will not involve itself in new certification activities.” Australian Standards and their role in the building and construction sector Standards Australia works closely with the building and construction sector to develop and maintain a robust set of Australian Standards for the sector.
This includes working closely with building, electrical, plumbing and gas sector industry and government representatives amongst others, to ensure that Australian Standards are maintained to support Australian industry and to meet community expectations.

The Australian Procurement and Construction Council Guide to Procurement of Construction Products (the APCC Guide) provides a comprehensive overview of the regulatory environment and frameworks in Australia that relate to building products.
3 Non-conforming building productsSubmission 45 Standards Australia Limited August 2015 Beyond the matters set out in the APCC Guide it should be noted that Australian Standards for the building and construction sector:  Are developed by industry, government and community interests to meet the needs of the Australian community;  Support the National Construction Code as prescriptive ‘Deemed‐to‐Satisfy’ solutions which meet the performance requirements of the NCC;  Support the needs of other regulatory regimes outside of the Australian Building Codes Board process, including for example in the areas of electrical and gas safety;  Are internationally aligned, and developed in accordance with Australia’s obligations under the World Trade Organization Technical Barriers to Trade Agreement.
Non‐conforming products and the non‐compliant use of products A distinction should be made between non‐conforming products and the non‐compliant use of products.

Non‐Conforming products relate to products where claims are made as to the conformance with a particular standard but where a product does not meet the standard.
There are a range of measures that could address the risk to the Australian community regarding non‐conforming products through the Australian Consumer Law and other mechanisms, such as, first party ‘supplier’s declarations of conformity’ through to independent third party conformity assessment such as product certification.
The non‐compliant use of building products relates to situations where building products are used in circumstances where the use of such a product does not comply with relevant codes, or standards.

Action in relation to this issue is much more complex and relates to the application of codes and standards through the building control regulations of the States and Territories.

It is suggested the Inquiry examines these two issues separately.
Response to the Terms of Reference The regulatory framework for building and construction is complex.

It involves multiple jurisdictions with differing regulatory objectives, and differing compliance regimes.

To the extent that community expectations are that ‘products meet standards’, a process should remain in place for the assessment of building products against a set of measureable standards.
Possible improvements that may be able to be made to the existing framework should contemplate the range of compliance and conformity assessment paths set out in the APCC Guide.

Australian Standards will continue to be appropriate as a solution to particular issues.

Ensuring that standards development occurs in a policy context is important, and the continued support to the standards development process of industry and government is critical.
In some circumstances, other solutions may be more appropriate than the use of Australian Standards, but in every case, making an assessment as to whether the development or adoption of an Australian Standard should continue to be part of the process.

Standards Australia welcomes the opportunity to discuss this submission.

4 Non-conforming building productsSubmission 45