Foreword
Introduction
The Quality Regulation Review focused on how regulation is implemented and administered by government agencies. It sought to identify solutions to problems that are unnecessarily inhibiting business growth and economic development.
While the overwhelming message from the Review is that New Zealand's regulatory environment is in good shape, there is room for improvement. In particular, improvements are needed in:
- how requirements are implemented;
- how people and businesses are made aware of regulatory requirements; and
- how regulation is enforced.
The initiatives outlined in this sector studies report and all those who participated make a significant contribution towards meeting these needs.
Sector studies
Early on in the Review I couched the phrase "why can't the many arms of government extend a single hand to business" when seeking information. The point is, and this was reinforced in the sector interviews, that government may see each department separately, but from the business perspective, the government is the government, whether it is called the Inland Revenue Department, the Department of Statistics, the Department of Labour, OSH, the Accident Compensation Corporation (ACC), the New Zealand Food Safety Authority, and even when it is the local authority that is undertaking the enforcement.
Sector study interviewees felt that: coordination between government departments could be improved; information should be made more user-friendly; regulatory frameworks should operate as "level playing fields" where those who are seriously non-compliant are punished and treated as representing the real risk, while on the other the majority are seen as genuinely trying to be compliant and are treated accordingly.
This report does not mention all the problems and potential solutions raised during the sector studies however each interviewee will receive a letter responding to the issues that they raised.
A large number of issues raised related to the provisions of the Employment Relations, Holidays, Gambling, Customs and Excise, and Tax Acts. However, these issues related to underlying policy and so were outside the scope of the Review.
Next steps
As part of the Quality of Regulation Review, steps have been taken to improve government agencies' own review processes. Since April 2007, all proposed regulatory interventions have been subject to an enhanced Regulatory Impact Analysis (RIA) regime before going to Ministers for decisions. In order to test analysis early in the process, each government agency is required to include in discussion documents a Regulatory Impact Statement, (RIS), or at least pose the questions that would enable a RIS to be developed. This strengthens the incentives on government agencies to consider the impacts of regulations before they are considered by the government. Businesses are encouraged to participate in this stage of the policy development.
Also, the Ministry of Economic Development is to implement an ongoing program of sector studies as part of the Labour-led government's commitment to ensuring continuous improvement of the regulatory environment.
I want to thank the businesses and their Industry Associations who were involved with the sector studies. And I want to acknowledge the Departments that contributed by responding to the issues that were raised.
Finally I wish to acknowledge the officials who conducted the interviews. I know they were pleased to receive such a positive and enthusiastic response from busy people who made the time to participate in this important review.
Lianne Dalziel
Minister of Commerce
Minister for Small Business
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