Two Australian umbilical cord stem cell storage facilities have merged to form the largest storage business in Australia. I cannot help but wonder if it is all for the best in the long run.

Umbilical cord stem cell collection and storage is very expensive here in Australia - more than three times what it costs in the US. Of course, the US have a good handful of companies offering the service. This makes for competition and we all know what strong competition does to prices - it drives them down. If there is no competition then consumers are left to the mercy of the respective companies.

As if cost wasn't enough, the reality is that here in Oz, if over ten years of operation, no family has ever needed to access their stored umbilical cord stem cells. That's several thousand dollars in collection fees along with another thousand or more in annual fees with a zero return on their investment.

Don't get me wrong. I am all in favour of umbilical cord stem cell collection, research and storage - in the form of donations that are provided for general use. I am not in favour of the personal collection and storage for personal use.

For too long researchers have been denied to access to this material to undertake real studies into the benefits (if any) in using stems cells to treat illnesses. It seems there have been many cases of childhood leukemia being successfully treated using stem cells. The future looks bright for the treatment of nerve tissue damage (as in spinal injuries), the treatment of diabetes, and, more recently, the possibility of treating those with sight or hearing problems.

The real problems of course is the lack of research and this is where all governments together with our public hospitals should be collecting umbilical cord stem cells that can be used in research, and, where appropriate and clinically proven, for treatment.

There should also be a protocol in place that ensures the safety of the baby first, with the collection of umbilical blood second. I have heard stories that involve severe problems for the baby because the blood was collected prior to the baby being 'finished' with it - in other words, cutting the cord far too soon. Immediately after birth the baby draws in almost all of the blood in the umbilical cord - if it is cut too soon, the extra blood found in the cord is the amount the baby has been deprived of.

Fortunately for Australians, the private collection of umbilical cord stem cells is not huge. The new enterprise obviously thinks the potential is there to grow the business. If I was a new parent, and the babies birth was looming, I would discuss with the hospital the possibility of collection the cord blood as a donation.

As for paying, unless you have strong medical evidence that it will be needed in the next ten years - think twice about it first. You could be throwing good money away needlessly.