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Considering Standards as Part of Policy Development


The Regulatory Review: Issue 8 - December 2006

Regulatory Policy Team, Effective Markets Branch
[ Last Updated 27 April 2007 ]


What Are Standards?

Standards (with a capital "S") refer to formal Standards, developed through the consensus of a representative Standards development committee, and formally approved by the Standards Council (in accordance with the requirements of the Standards Act 1988).

Standards affect peoples' daily lives in many ways and span a wide breadth of sectors. Standards exist in areas as diverse as bungy jumping, organic production, energy efficiency, construction, healthcare, risk management, health and safety, food and drugs.

In broad terms, Standards are:

  • agreed technical specifications for products, processes, performance or services
  • used to provide information, establish measurements, set minimum levels of quality or safety, and support interface and compatibility between products and services
  • flexible and relatively inexpensive regulatory instruments that can be used in support of many government policies, suitable to New Zealand's regulatory environment.

How Are Standards Applied?

Most Standards are voluntary, but when referenced in legislation they can be considered mandatory or one component of "technical regulations". A regulator may accept a Standard as a means of compliance with regulatory requirements ("acceptable solution approach"). Standards may also be a requirement for entering into a service contract without necessarily being referenced in legislation. Voluntary Standards can be developed by industry and Government as codes of practice or guidelines that set out acceptable or better practice.

Standards are well-recognised by industry, regulators and consumers and also accepted trans-Tasman as helping to underpin and to promote the aims of a SEM (Single Economic Market) and TTMRA (Trans-Tasman Mutual Recognition Arrangement). Standards are also recognised internationally where developed in conjunction with Standards New Zealand (as New Zealand's representative in the International Organisation for Standardisation ("ISO") and the International Electrotechnical Committee ("IEC")).

Standards Are a Useful Tool for Policy Makers

When developing policy, it may be useful to consider Standards as one of your options.

New Zealand and Australia have endorsed a framework which requires consideration of international (ISO) standards, then joint trans-Tasman (Australia/New Zealand) standards before the development of domestic only standards.

Government has expressed a desire for the regulatory environment to be less prescriptive, encourage stakeholder participation and, wherever possible, not to add unnecessary business compliance costs. Examples of the variety of government objectives that can be met through Standards include enhancing wellbeing and public welfare, promoting regional or international best practice, promoting appropriate and adequate commercial communication, supporting regulatory harmonisation and encouraging technological diffusion.

Standards can complement policy development and/or reduce the level of detail required in regulation drafting, promote sector involvement and reduce associated monitoring and business compliance costs. Direct stakeholder and industry involvement in developing Standards means they are widely accepted by those who have to implement them.

Standards can also be developed and published relatively quickly compared to the timeframes for changing legislation or regulation. Standards are therefore flexible and can be responsive to and reflect New Zealand's changing economic and social environment.

Standards and Conformance Infrastructure Review Underway

Standards New Zealand is working closely with the Ministry of Economic Development as a participant in the Ministry's current review of New Zealand's standards and conformance infrastructure.

The review forms part of the government's economic transformation agenda and may identify opportunities to enhance the contributions made by Standards towards achieving economic growth, innovation and broader public good outcomes.

Over the coming year, Standards New Zealand is looking to actively engage across government to promote a better understanding of Standards and their place in the spectrum of available policy options.

For More Information on Standards

For More Information on the Standards and Conformance Infrastructure Review or How Standards Fit into Policy Development

Examples of Standards Sponsored by Government

Standard Implementation Sponsor
Health and Disability Sector Standards
(NZS 8134:2001)
Mandatory (to access funding) Ministry of Health (MoH)
Timber Framed Buildings
(NZS 3604:1999)
Means of compliance ("acceptable solution") Department of Building and Housing (DBH)
Accident and Medical Clinic Standard
(NZS 8151:2004)
Contract requirement Accident Compensation Corporation (ACC)
Gender - Inclusive Job Evaluation Standard
(NZS 8007:2006)
Voluntary (best practice) Department of Labour (DoL)

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