Cost-benefit summary table
On this page
The Ministry of Business, Innovation & Employment (MBIE) commissioned the New Zealand Institute of Economic Research (NZIER) to undertake initial desktop research to inform an indicative quantification of the costs and benefits of each option. Data for the New Zealand context was scarce, and all figures should be viewed as preliminary for the purpose of informing consultation. The approach is based on studies from Canada and the US.
Table 1 explores some of the potential costs and benefits of the options. All values are reported as present values based on costs and benefits with a discount rate of 5% per annum. MBIE intends to use the consultation process, along with further research, to fill in information gaps, and develop a more fulsome picture of expected costs and benefits of the options. Net benefit has not yet been calculated, as information on costs and benefits are still being gathered, but this will be used to inform later analysis.
Questions
| Approach to analysis |
|---|
|
Table 1 Preliminary estimates of option costs and benefits
1. Information and education
| Benefits – reduced deaths and injuries | Costs to consumers and suppliers | Costs to government | Total costs |
|---|---|---|---|
| Unknown – depends on response | Unknown – depends on response | $4.6 million ($300,000 per annum over 30 years) | $4.6 million + costs to consumers |
Net benefit
More information needs to be gathered before net benefit can be estimated.
2. Remediation with government assistance
| Benefits – reduced deaths and injuries | Costs to consumers and suppliers | Costs to government | Total costs |
|---|---|---|---|
| $658,565 over 5 years. | None.* | $101,000 to 334,000 (an average of $23,000-$75,000 per annum over 5 years), if initial uptake is similar to Victoria, plus administration costs | $101,000 to 334,000 plus administration costs over 5 years |
*This assumes government fully funds the costs of remediation. If government only partially funded the cost of remediation, consumers would face the remaining costs.
Net benefit
More information needs to be gathered before net benefit can be estimated.
3. Voluntary modification
| Benefits – reduced deaths and injuries | Costs to consumers and suppliers | Costs to government | Total costs |
|---|---|---|---|
| Up to $7.8 to 12.7 million over 30 years depending on adoption of voluntary measures | Up to $55.8 to 95.9 million over 30 years* depending on adoption of voluntary measures. | Under $46,000, as a one-off cost** | Up to $55.8 to 95.9 million over 30 years |
*Based on cost estimates for cord tensioners in NZIER Corded blind safety report, page 24.
NZIER Corded Blind safety report [PDF, 1.2 MB]
**Based on the cost to employ 0.2 policy advisor in full time employment (FTE) and 0.1 senior policy advisor FTE for one year.
Net benefit
More information needs to be gathered before net benefit can be estimated.
4A. Regulating safety features on corded window coverings
| Benefits – reduced deaths and injuries | Costs to consumers and suppliers | Costs to government | Total costs |
|---|---|---|---|
| $7.8 to 12.7 million over 30 years. | $55.8 to 95.9 million over 30 years.* | Not yet costed – expected to be low to medium. | $55.8 to 95.9 over 30 years million. |
*Based on cost estimates for cord tensioners in NZIER Corded blind safety report, page 24.
NZIER Corded Blind safety report [PDF, 1.2 MB]
Net benefit
More information needs to be gathered before net benefit can be estimated.
4B. Prohibiting exposed cords
| Benefits – reduced deaths and injuries | Costs to consumers and suppliers | Costs to government | Total costs |
|---|---|---|---|
| $11.8 to 19.0 million over 30 years. | $169.1 to 290.6 million over 30 years. | Not yet costed – expected to be low to medium. | $169.1 to 290.6 million over 30 years. |
*Based on cost estimates for cord tensioners in NZIER Corded blind safety report, page 24.
NZIER Corded Blind safety report [PDF, 1.2 MB]
Net benefit
More information needs to be gathered before net benefit can be estimated.