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Annex One: Quality Regulation Review - Some Key Achievements


Cabinet Paper: Quality Regulation Review – Final Report

Hon Lianne Dalziel, Minister of Commerce
[ Last Updated 4 September 2007 ]


Within this section…

Biosecurity

  • The Ministry of Agriculture and Forestry (MAF) has structurally integrated Biosecurity New Zealand and MAF Quarantine Service to better connect policy development, risk analysis, standard setting and implementation functions.
  • Biosecurity New Zealand released updated standards for plant exports, which are being phased in by 1 September 2007. The New Zealand Food Safety Authority's (NZFSA) requirements will be similar to Biosecurity New Zealand's new standards, giving businesses flexibility to decide how to manage risks.
  • MAF, the Ministry for the Environment (MfE) and the Environmental Risk Management Authority of New Zealand (ERMA) have developed proposals to address current problems with the Biosecurity Act/Hazardous Substances and New Organisms (HSNO) Act interface covering the importation of new organisms. MAF is working with ERMA to address the concerns raised in the Industry Plant Import Group report and will be liaising with the Industry Plant Import Action Group as solutions are developed and implemented.
  • The Plant Biosecurity Index has been established to help industry quickly identify organisms that do not need HSNO approval.
  • Biosecurity New Zealand's updated export standards provide consistency with the NZFSA on the requirements of the Independent Verification Agencies (IVA) accreditation.
  • Officials are working with the Plant Imports Action Group to address perception and operational issues with plant importers.

Building

  • Cabinet agreed to a detailed work programme to be undertaken during 2007/2008 by the Department of Building and Housing (DBH), Department of Internal Affairs (DIA), MfE and Local Government New Zealand (LGNZ) to help resolve issues around the interface of the Resource Management Act (RMA) and the Building Act; and will consider a report on the findings in August 2007.

Business Information

  • The Companies Office is refreshing its core IT applications to enable it to more quickly and easily pass information on to other government agencies.
  • Electronic notifications of all companies pending removal from Companies Register will be provide to the Inland Revenue Department (IRD).
  • Implementation of Australia and New Zealand Standard Industry Classification has commenced within Statistics New Zealand (Statistics NZ). Statistics NZ has been liaising with other departments, in particular IRD and the Accident Compensation Corporation (ACC), to schedule and plan the implementation.

Employment

  • An on-line tool to assist businesses with entitlement calculations under the Holidays Act was released in March 2007. The Minister of Labour will report to Cabinet on the implementation and effectiveness of this tool by June 2008.
  • The Department of Labour (DOL) has developed an online Individual Employment Agreement Builder on its website which provides assistance with draft employment agreements.
  • DOL undertook a number of initiatives in the first half of 2007 to improve the information and guidance provided to business on a range of issues, including use of probationary periods, how to manage the parental leave process and returning to work, managing the health and safety of contractors, and a review of current publications on managing employment relationship problems.
  • DOL has undertaken research into the costs and benefits of settling/resolving employment disputes under the Employment Relations Act and will report to Cabinet in August 2007 on the findings and options for addressing key issues.
  • Cabinet has agreed that the Immigration Bill will allow employers to seek information on the immigration status of prospective or current employees without their explicit consent, addressing concerns about risks to business from employing people working illegally.
  • Cabinet has agreed, as part of the Immigration Bill, to provide for "interim" visas for applicants who would otherwise become unlawful while a further application is considered.
  • DOL is reviewing the temporary work policy for low/unskilled labour occupations, as well as the Working Holiday scheme, to address perceived inflexibility, and will report to Cabinet by August 2007 and December 2007 respectively.
  • DOL is implementing a Recognised Seasonal Employer Scheme (RSE) policy for the horticulture and wine sectors, to facilitate the employment of seasonal workers. Cabinet agreement included additional funding for compliance officers and labour inspectors. This will allow for a greater emphasis on education, ensuring employers fully understand their obligations and are well supported.

Excise

  • The Customs and Excise Amendment Bill was passed in February 2007, aligning the dates for changes to excise levies and Alcohol Advisory Council (ALAC) levies paid by the wine industry.

Food

  • Food Hygiene Regulation requirements are being replaced by Food Handler Guidance (a non-regulatory approach) for Bed and Breakfast operators.
  • The new programme of wine regulations and notices requires wine makers to operate under a wine standards management plan (WSMP). Once winemakers obtain a WSMP, they will be exempt from the Food Hygiene Regulations. WSMPs are expected to be fully implemented in December 2008.
  • NZFSA is working on proposals for new food legislation as part of an extensive Domestic Food Review (DFR). The DFR is intended to produce a new regulatory system to replace the Food Act 1981 and the Food Hygiene Regulations 1974 which is expected to provide greater consistency across the country. Implementation is expected to begin in late 2007.

Gambling

  • DIA undertook a targeted information provision campaign to the gambling industry on how to deal with problem gamblers in March 2007.

Health and Safety Issues

  • The Ministry of Health (MoH) has completed a review, including a mapping exercise, of the contractual and legislative requirements for audits of health and disability service providers. The Ministry of Health is working to reduce as much as possible the number of audits it is responsible for requiring while continuing to ensure public safety. Options for working with the District Health Boards to agree common compliance requirements will be progressed in the future.
  • MoH is undertaking a review of the way that the ALAC levy is calculated. The Associate Minister of Health is considering a number of options to improve the current regime and it is expected that government will introduce an amendment Bill this year.
  • Preliminary consultation has been undertaken with business on the interaction of Health and Safety in Employment, HSNO, and ACC legislation. A feedback document testing solutions with business has been released. Short term initiatives completed or underway as part of the project include:
    • a review of auditing methods used for the ACC Partnership Programme will be completed by January 2008;
    • ERMA and DOL have developed information and tools to assist HSNO compliance in the farming and horticulture industries;
    • ERMA has produced HSNO compliance information for the embalming, paint industry and service stations;
    • options are being investigated for delivering co-ordinated health and safety advice and information through business mentoring and coaching programmes; and
    • an online hazard self assessment tool for small and medium enterprises (SMEs) with content that will assist businesses to manage health and safety matters and meet the ACC Workplace Safety Discount programme where they are eligible is being developed.
  • DOL has developed a strategic approach to health and safety enforcement. Implementing the new approach has started and will continue over the next 18 months.
  • ACC is providing more understandable and accessible information to businesses about its services and how it sets levies, and will ensure that new levy invoices will provide clearer information, by June 2007.
  • The Growsafe certification renewal period has been aligned with the renewal period for HSNO approved handlers.
  • ERMA has a programme to develop user-friendly guidance on HSNO requirements, particularly aimed at SMEs, and operates a dedicated toll free service to support industry compliance.
  • The Hazardous Substances Compliance and Enforcement Strategy is being implemented. The first stage of the Strategy has involved providing targeted information to key industry sectors.
  • ERMA New Zealand has revised requirements for handling and using petrol on farms – removing the approved handler control for farms of four hectares or larger where less than 2000 litres of petrol is stored. This means that a farmer will no longer require an approved handler certificate for petrol, nor will an approved handler have to be available.
  • ERMA New Zealand has been working with the New Zealand Agrichemical Education Trust to better integrate HSNO requirements (particularly those relating to approved handlers) with the Growsafe introductory course. This is only but one mechanism for becoming an approved handler for agrichemicals. The objective of this work is to eliminate the need for persons that complete relevant training, such as the Growsafe introductory course, to also be required to undertake separate and duplicative requirements to achieve HSNO compliance.
  • Officials are in the process of reviewing the HSNO test certification regime so determine where improvements can be made across the system. This review may include implications for the approved handler licensing system.

Liquor Licensing

  • The Office of the Auditor General is undertaking an audit of District Licensing Authorities, including how local authorities are conducting their liquor licensing responsibilities and how these might be improved.

Regulatory Process Disciplines

  • An enhanced framework for strengthening Regulatory Impact Analysis requirements has been agreed by Cabinet and came into force on 1 April 2007.
  • The Society of Local Government Managers has initiated a Recruitment and Retention Programme, an over-arching initiative to encourage recruitment across the whole local government sector, as one way to address capacity and capability issues.
  • A Business Cost Calculator, that determines the compliance cost of proposed regulation on business, will be ready for application within government departments in the first half of 2008 for a two year trial.

Resource Management Act

  • Amendments to the RMA to deal with vexatious and anti-competitive submitters will come into force in August 2007.
  • MfE has addressed consistency in the decision-making process through changes to the RMA by requiring decision makers to be accredited. Training focuses on interpreting the legislation, understanding and running hearings appropriately.

Standards and Conformance

  • The Government completed a review of New Zealand's standards and conformance infrastructure in May 2007. The key outcomes of the review are:
    • a Regulatory Forum, comprising regulatory agencies, will be established with a view to making better use of the standards and conformance infrastructure in terms of achieving sound regulatory outcomes and supporting the development of quality regulations;
    • Sector Advisory Boards will be established and will to be responsible for the development of a strategic plan for standardisation within the sectors for which they are responsible, and ensuring a standards catalogue is maintained and kept up to date;
    • a sub-group of the Regulatory Forum will be created to provide advice to the Ministers of Commerce, Consumer Affairs, and Research Science and Technology on New Zealand's future needs and priorities in both legal and physical metrology;
    • the Business Capability Partnership (a partnership between the government and Business New Zealand) will consider actions to improve the use of voluntary management standards by New Zealand firms;
    • a web-based information clearing house, with an accompanying physical point of contact, will be established to improve business access to all relevant information on standards and conformance and regulatory requirements; and
    • the Standards and Testing Laboratories Registration Councils will be restructured to address the potential for the blurring of the boards' governance and advisory functions, and to provide a more efficient appointment process.

Statistics

  • Additional funding was announced in Budget 2007 to enable Statistics NZ to make around 250 million pieces of information free to business - $6 million over next four years plus $2.7 million in capital funding for 2007/2008.
  • Statistics NZ is implementing a Respondent Load Strategy that provides a framework for other initiatives that will reduce respondent load over the next year, such as reduction of load for individual SMEs where the load is demonstrated to be unreasonable and out of step with industry typical load levels.
  • Statistics NZ is undertaking a project to enable business respondents to plan and manage their commitments to Statistics NZ, including:
    • the ability for respondents to receive via email customised survey calendars for their businesses, detailing the full extent of their current survey obligations;
    • a generic calendar outlining the relevant dates associated with the full range of business surveys; and
    • improved Frequently Asked Questions information placed on the Statistics NZ website and used by the contact centre when helping business respondents.
  • Statistics NZ is undertaking a range of initiatives to improve communications with business and respondents, including:
    • sponsoring the Business Information Zone at all Small Business Expos;
    • increasing the emphasis on building relationships with organisations that represent New Zealand businesses. This includes an initiative to have regular engagement with business associations such as: Business New Zealand, Employers and Manufacturers Association, Auckland Chamber of Commerce, Biz New Zealand and Business Mentors New Zealand;
    • piloting a "visits to business" initiative to give Statistics NZ staff practical experience of how businesses operate and what their needs are; and
    • enhancing communications in survey questionnaires that thank respondents for their contributions.
  • Statistics NZ is continuing to replace survey data with administrative data, including:
    • halving the load associated with the monthly Accommodation Occupancy Survey by June 2008. The survey accounts for 25 percent of all burden hours imposed on businesses by Statistics NZ; and
    • continuing the programme of sample reduction for the Annual Frame Update Survey (from 73,000 to 70,000), which accounts for 7 percent of all burden hours imposed on businesses by Statistics NZ.

Tax

  • The Inland Revenue Department (IRD) has redesigned the certificate of tax exemption which will in future be issued with a holographic foil surface. This surface will give a distorted image if photocopied or scanned, which will make it easier for companies to ensure that the certificate they are sighting is the original.
  • IRD implemented new pay as you earn (PAYE) subsidy rules to allow small employers to outsource their PAYE compliance obligations and focus their efforts on their business and reduce late or shortfall penalties on small businesses.
  • IRD is seeking to increase support for new businesses in the future through proactive communication at the outset by telephoning those businesses that are employing their first employee and has contacted over 6,000 employers since March 2007.
  • The Companies Office and IRD's Online Application Project is being enhanced. From July 2007:
    • applicants will be able to apply for GST numbers at the same time as their IRD numbers; and
    • the IRD and GST numbers will be allocated simultaneously.

Vehicles

  • Regulations have been amended to address problems arising from a legal technicality that removed the eligibility of certain vehicle dealers (primarily boat and trailer dealers) to hold trade plates.
  • The definition of what constitutes a "goods service" vehicle, and therefore requires a goods service licence, has been reviewed to remove the requirement for all vehicles with a gross laden weight of less than 6000kg to have a goods service licence, regardless of whether they are being used for "hire and reward" or not.
  • Cabinet has agreed to strengthen the offensive provision for non-notification of vehicle ownership change and create an offence for this, enforceable by Police, local authorities and Land Transport New Zealand (LTNZ).
  • LTNZ has produced a fact sheet that explains operating conditions for normal over-dimension loads.

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