The new Regulatory Impact Analysis (RIA) regime replaced the RIS regime on 1 April. Regulatory Impact Statements (RISs) are still required, but the new regime puts greater emphasis on the need to undertake quality analysis throughout the policy process for regulatory proposals. This will assist with practical, robust, consultative and accountable policy making.
The RIA regime covers documents from the discussion document stage, through policy consultation and general analysis, including focusing on the transparency and clarity of the final RIS. The exemption criteria have changed slightly from the RIS regime.
Discussion documents, for non-exempt policy proposals that are likely to result in legislation, now need to either target questions around the RIA elements (policy problem, options and impacts of each option) or have a draft RIS attached. They also need to comply with the Code of Good Regulatory Practice. The amount of detail/quantification needs to be sufficient for the stage of policy development.
The RIA regime requires policy makers to consult with a representative sample of affected parties on RIA elements, and allow adequate time and publicity for parties to respond properly.
The RIA regime requires analysis of likely impacts before proposals are put to Cabinet. This gives decision-makers confidence about which policy option is best for society. Analysis can be covered by several documents and does not have to be explained in detail in the final RIS, which should include high level key features.
Under the new regime, policy analysis should:
- demonstrate that the Status Quo (no change) is unsatisfactory;
- consider all feasible options;
- identify all environmental, economic, social (including health) and cultural costs, risks and benefits of each feasible option;
- quantify or otherwise assess each impact;
- indicate any assumptions or judgments made by policy makers; and
- indicate why the preferred option has been chosen over others.
For policy proposals to achieve adequacy, the degree of quantification, consultation and analysis should be proportionate to the impact.
The Regulatory Impact Analysis Unit (RIAU) will comprehensively review all "significant" proposals [as defined in the guidelines] for adequacy of policy analysis, consultation, and transparency of final RIS. The RIAU will also comment on discussion documents for significant proposals.
In addition to enhanced analysis requirements, departments will have more responsibility for self-regulation. Only 20 to 30% of all policy proposals are expected to be "significant" under the new regime. For the other 70 to 80%, departments will need to state that they are satisfied that their own analysis, consultation and RIS are adequate and comply with the Code of Good Regulatory Practice.
The new RIA guidelines can be found at: Regulatory Impact Analysis.
Mark Jones