Environmental Policy — Carbon tax and the dental industry

A s the peak representative body for suppliers of quality products and services used in dentistry, the Australian Dental Industry Association (ADIA) has a commitment to the creation and maintenance of a business environment that allows members to run their business free from unnecessary government interference. In these changing times, this has required ADIA to serve as an effective advocate for its members not only on matters associated with dental product / medical device regulation, but also higher level policy issues such as the Australian Government’s proposed carbon tax.

From the dental industry’s perspective there are two aspects of the issue, the first associated with the use of synthetic greenhouse gases in dental product and the second associated with the broader impacts on business operations.

Carbon Tax – Synthetic greenhouse gases used in dentistry

The legislative package to support the carbon tax covers the application of an equivalent carbon price on synthetic greenhouse gases. These gases may be present in pharmaceutical products, such as metered dose inhalers (for example asthma inhalers), as well as in equipment for medical applications, or in ultrasounds (contrast-enhanced), and MRIs (as a tracer), or as a skin coolant when undergoing laser surgery. The Australian Government has sought advice from ADIA to ascertain whether synthetic greenhouse gases (e.g. hydrofluorocarbons, perfluorocarbons, or sulfur hexafluoride) are present in dental equipment or have other uses in dentistry. A response to the department is being prepared by the ADIA-DRC Dental Regulation Committee.

ADIA has been advised that the Australian Government may exempt synthetic greenhouse gases used in dentistry from the application of an equivalent carbon price. However in order to do so, it will need to identify the use, the type of use, cost impact thus the need to consult with ADIA.

Carbon Tax – Impact on business operations

Historically, the business interests of ADIA members would have been overlooked as the Australian Government progresses higher order policy initiatives such as the carbon tax. However, this is no longer the case as through ADIA’s strategic link with the Australian Chamber of Commerce and Industry (ACCI) ensures that the dental industry has a voice in the national policy debate. ADIA Executive Officer, Troy Williams, was recently appointed to the ACCI Sustainability Working group tasked with providing policy and leadership to the business community on sustainability issues.

With reference to the carbon tax, ACCI has developed a policy which states that embedding an economy wide carbon price into the costs of doing business in Australia when comparable action is not being taken by competitor nations is a flawed approach to climate policy that risks jobs and is unfair to small business. ACCI has acknowledged efforts by the Australian Government to provide compensation to households and some industry, but has noted that going alone as a nation means carbon tax pain for no climate gain at a global level. ACCI Chief Executive Officer, Peter Anderson, has highlighted the important point that while the carbon tax issue is highly political, a great disservice is done to the issue by the oversimplification which characterises political debate.

The ADIA-BAC Business Affairs Committee is tasked with developing a business environment that allows members to provide quality products and services on a profitable basis. The committee’s remit includes working with ACCI to review the impact of the carbon tax on businesses within the dental industry and if you would like to join this committee please contact the ADIA national office by sending an email to national.office@adia.org.au