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2.2 Background

The National Blood Authority was established in July 2003 under the National Blood Authority Act 2003, and in accordance with the National Blood Agreement, to improve and enhance the management of the Australian blood banking and plasma product sector at a national level.

Prior to the establishment of the National Blood Authority, there existed over 30 separate agreements between various stakeholders including governments, the Australian Red Cross Blood Service and CSL Limited. In 2001, a review chaired by the Rt Hon. Sir Ninian Stephen identified that supply costs increased significantly between 1991 and 1999 and commented that Australia's blood supply system was highly fragmented and costly.

The review recommended a national approach to strengthen the coordination and oversight of Australia's blood supply. This included the establishment of a national blood authority to manage Australia's blood supply.

The National Blood Agreement was approved by the Australian Health Ministers' Conference in November 2002 and was subsequently signed by all health ministers. At that time an interim Board was also appointed to advise the Australian Government Minister for Health and Ageing on the implementation of the new arrangements in the lead-up to the establishment of the National Blood Authority. A Board was appointed in May 2003 and was chaired by a former Commonwealth Chief Medical Officer, Professor Richard Smallwood.

Legislation allowing for the establishment of the National Blood Authority passed through both Houses of Parliament unopposed, and the National Blood Authority came into existence on 1 July 2003. Policy objectives reflecting the legislation are detailed in the National Blood Agreement extract set out in Table 2.

TABLE 2: EXTRACT FROM THE NATIONAL BLOOD AGREEMENT

Table 2

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