Business was assured enough rapid tests likely for demand

Bureaucrats, in confidential briefings, told the ­nation’s business leaders as early as October that supply would not be a big issue for rapid Covid-19 tests.

A Covid-19 rapid antigen test.

Commonwealth bureaucrats, in confidential briefings, told the ­nation’s business leaders as early as October that there would not be significant supply issues associated with the rollout of rapid Covid-19 tests while lauding their safety, cost-effectiveness and ability to protect the community.

A presentation prepared by the Industry Department’s pandemic response branch for a briefing of peak business groups at the height of the Delta wave notes that manufacturers of the tests were “confident” they could meet demand, and while Australia “may face short-term supply shortages when self-tests become available … these are expected to resolve quickly”.

The briefing, distributed on ­October 12, noted the experiences of Britain, Canada and Germany in making widespread use of the rapid antigen tests.

It came as employers worried about the cost of rapid testing at facilities in Sydney as the number of Covid-19 cases grew, and with the Therapeutic Goods Administration yet to approve self-administered kits.

However, the briefing came before the arrival of the newest variant, Omicron, which spreads more rapidly and has been blamed for the recent surge in Covid-19 cases.

Joe Hockey, a former treasurer whose company Bondi Partners is advising two local rapid test suppliers – Ellume and Atomo – said it was “like moving mountains to gain acceptance of rapid tests”.

“It’s immensely frustrating that (Ellume) have produced these kits for an extended period of time now, and they’re all going to the US when they could have gone to Australia,” he said. “It was simply … that the US government backed them when … the Australian government didn’t.”

Mr Hockey said Ellume, which has committed its entire supply to the US, is shipping 700,000 tests to American retailers each week. It has not requested TGA approval.

Atomo, which does not manufacture tests but has the capacity to import 10 million kits, is awaiting approval from the regulator.

“I don’t want to belt up the TGA, I want to give them a hurry along,” Mr Hockey said. “Pathology has run rings around the government – all governments – and somehow convinced them that the only way to test is to have the most expensive test available that only pathologists can provide,” he said.

The October briefing, given at the urging of industry groups, read: “Widespread screening can help identify asymptomatic people before they risk transmitting the virus to larger populations.

“Indications are that there are many kits already in country and importers are ready to respond quickly. Domestic manufacturing capacity is substantial,” it added.

To date, the TGA has approved only one Australian rapid test manufacturer.

One source who had sighted the Industry Department briefing, speaking on condition of anonymity, said: “Why on Earth didn’t we look at what the UK was doing? It just makes no sense, especially going through what we did with (the supply) of vaccinations.”

The briefing was distributed to senior figures at the Business Council, Australian Industry Group, the Australian Chamber of Commerce and Industry, the Australian Bankers Association and the National Farmers Federation.

The federal government, however, does not expect shortages to continue for long.

A spokesman for Industry Minister Angus Taylor said the discussion was not in relation to the use of rapid tests as a replacement for existing measures, and predated the identification of Omicron.

“Wholesalers report adequate stock levels but retailers, particularly major super markets, have been mostly running conservative stocking levels and are reluctant to run large stockpiles,” he said.