Formaldehyde...

This is just one of the many letters and reports currently circulating within the kitchen industry.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The Hon. Ian Macfarlane MP Minister for Industry, Tourism & Resources.                                             PO Box 6022 Parliament House.                                                                                                Canberra ACT 2600

RE: IMPORTATION OF DANGEROUS GOODS INTO AUSTRALIA

Dear Minister,

I write on behalf of both the Furnishing Industry Association of Australia and the Kitchen Industry Association of Australia. Both organisations are significant associations representing the interests of furniture, furnishings and kitchen manufacturers and wholesalers in Australia.

For many years the general market for furniture, furnishings and kitchen cabinets have been served by a large base of Australian manufacturers and importers who generally provide these goods both directly to the consumer and also through large and small retail organisations, many of whom are household names known to almost all Australian consumers.

These goods are everywhere in our lives – the beds you sleep on, the blankets on them, the furniture in your house, the kitchen cabinets in your home, and of course the chairs and desks that you sit at as you read this email.

Your children, in fact all Australian children, sleep in cots and beds, and play at or near the furniture and cabinetry that is supplied through our industry. Sometimes, unfortunately, Australian toddlers even pick at and chew these products until they acquire the intelligence to understand that this is not wise.

The point is that there is now an increasing volume of imported furniture, furnishings, cabinetry, and reconstituted timber panel products which are being imported into Australia which contains dangerous levels of formaldehyde and/or lead or other poisonous chemicals. Doubtless you are aware of the recent case involving lead-based paints being used on Matel toys in the USA.

Lead is universally recognised as a highly toxic substance. Formaldehyde, at concentrations above scientifically determined levels, is a universally recognised carcinogen.

For many years, the supply chain for the products of our industry was dominated by a small number of well known suppliers – in respect of reconstituted timber panels (ie MDF, HMR, etc) such as Laminex, Polytec and D & R Henderson. By and large, all of these large suppliers of the materials for our industry always closely followed Australian New Zealand Standards (and they continue to do so), which specify very clear thresholds of acceptable formaldehyde and other poisonous chemical limits. The increase in the last few years of entrepreneurs importing such goods into Australia has unfortunately not been accompanied by a universal compliance with the relevant Australian New Zealand standards.

As such, we now have Australian consumers buying “cheap” goods that are potentially dangerous to themselves and their families, and of course the workers that install them.

This can only be described as market failure. This market failure is evidenced in a number of ways:

Because there is little probability of being 'caught', it is always less costly to ignore relevant standards. This means that legitimate, law abiding, standards compliant businesses are losing sales and markets to dodgy product. This can only be described as unfair and no spin doctor can argue otherwise.

A consequence of these dodgy products being allowed to be freely marketed and sold to consumer victims is that the reduced price for these products creates a price expectation in consumers that even legitimate standards compliant product should be similarly priced. The cost of compliance is high and such unfair competition can only lead to profit reductions and unsustainable market conditions for these legitimate organisations. The numerous small businesses in our industry who try to compete using compliant panel products are at risk as well. Again this can only be described as market failure.

This establishes that the issue has implications for the industry and small business.

The point is that the Government must intervene.

Both our associations believe that Australian manufacturing must learn to compete with global suppliers, and for the most part, all of our members accept this viewpoint. Notwithstanding this, competition must be fair, and consumers must be protected – now and in the future.

I recently spoke at length to one of our members whose sole business is importing Chinese-made outdoor furniture which is then retailed through major retail organisations. His company put in place many measures designed to ensure product safety, product quality, timely supply and follow-up service. His biggest issue is competing with products where safety, quality and integrity is non existent. We support his approach and we would expect that any reasonable person would agree.

As such, the issue is not about tariffs, or Australian-made v. imported products.

Federal and State Governments have always supported the development and observance of Australia New Zealand Standards. This is clearly evidenced in their support of Standards Australia, through sponsorship, and through Government procurement policies requiring Standards compliance.

We believe that the most appropriate response is for the Government to mandate compulsory compliance with the relevant Australian New Zealand Standards. That must also be backed up with both an education and a compliance regime. Our associations have a number of strategies which we believe can ensure continuing market support at a reasonable, in fact insignificant cost to Government.

We know that this issue, both for our industry and other industries in the United States of America and in Europe, has been dealt with by immediate responses from the relevant government instrumentalities.

This issue may affect all Australians.

The market failure will have enormous impacts on approximately 10,000 small businesses if not dealt with promptly. We ask that you make a leading contribution to making a difference.

We look forward to a meeting with you at the earliest opportunity.

Regards

Martin Lewis Chief Executive Officer.                                                                                        Furnishing Industry Association of Australia Ltd.                                                                           Kitchen Industry Association of Australia.                                                                                             PO Box 6783 SILVERWATER. NSW 1811                                                                                              - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

                                           BACK TO HOME PAGE         BACK TO 'Insider Secrets'