Key Government Responses to Issues Raised
Duplication
To minimise the need for businesses to repeat processes or provide similar information for different agencies:
ACC, the Inland Revenue Department, the Companies Office and Statistics New Zealand are leading a whole-of-government programme to institute a central repository for business information to improve collection of data and reduce duplication and reporting burdens for business. This will be part of a larger piece of work referred to as Standard Business Reporting.
The Inland Revenue Department and the Companies Office now enable companies to register for GST at the time of incorporation.
The Ministry of Health recently led a project to identify where contractual and legislative requirements could be enhanced and streamlined to ensure audits are more effective and efficient and less duplicative for health and disability service providers. This may provide the model for addressing multiple audits and certification requirements in the sectors we reviewed.
Inconsistency
To provide consistency in the application of regulation and clarity over justifiable variations:
The Ministry for the Environment:
- is behind the Quality Planning Website www.qualityplanning.org.nz that is aimed specifically at those administering the Resource Management Act (RMA); and
- has also addressed consistency in the decision-making process through changes to the RMA requiring RMA decision makers to be accredited. Training focuses on interpreting the legislation, understanding and running hearings appropriately, and associated matters such as recognising and dealing with conflicts of interest.
Biosecurity New Zealand's updated export standards provide consistency with the New Zealand Food Safety Authority on the requirements for the Independent Verification Agencies (IVA) accreditation.
The New Zealand Food Safety Authority 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.
Insufficient information
To provide clear, accessible and user-friendly information:
The Department of Labour:
- 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: probationary periods; the parental leave process and returning to work; and the health and safety of contractors; and
- is developing an online Hazard Manager for small and medium sized enterprises, which aligns with ACC requirements for the new Workplace Safety Discount, for release in 2007.
ERMA New Zealand has a programme to develop user-friendly guidance on HSNO requirements, particularly aimed at SMEs, and operates a dedicated toll free service (0800 376 234) to support industry compliance.
ACC:
- introduced, from June 2007, new levy invoices that provide clearer information for business; and
- is providing to businesses, as part of its levy setting process this year, more understandable and accessible information about how it sets its workplace levies.
The Inland Revenue Department 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 6,279 employers since 1 March 2007.
The Department of Internal Affairs undertook a targeted information provision campaign on how to deal with problem gamblers in March 2007.
Land Transport New Zealand has produced a fact sheet (no. 53) that explains operating conditions for normal over-dimension loads.
The New Zealand Customs Service has instituted the Frontline programme to assist new clients with excise.
Complex, onerous or unclear accountability
To streamline regulatory processes and to clarify accountability:
A Business Cost Calculator, that allows the compliance cost of proposed regulation on business to be calculated, will be ready for application within government departments in the first half of 2008 for a two-year trial.
The Inland Revenue Department established on 1 October 2006 new 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.
The Department of Labour:
- has an online Individual Employment Agreement Builder on its website which provides assistance with draft employment agreements;
- released an online tool to assist with entitlement calculations associated with the Holidays Act in March 2007. The Minister of Labour will report to Cabinet on the implementation and effectiveness of this tool by June 2008;
- has been permitted to disclose to potential employers whether non-citizen prospective employees are entitled to work, and the duration of that entitlement (without explicit consent from the prospective employee). This will enable DOL to develop a system for employers to find out about entitlements to work via the Internet; and
- established an immigration policy specifically for employers in the horticulture and viticulture industries.
The Ministry of Health is undertaking a review of the way that the Alcohol Advisory Council of New Zealand 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 calendar year.
Statistics New Zealand:
- is implementing a Respondent Load Strategy that provides a framework for other initiatives that will reduce respondent load over the next three years, such as reduction of load for individual small to medium enterprises where the load is demonstrated to be unreasonable and out of step with industry typical load levels; and
- along with the Ministry of Tourism, has committed to halving the load associated with the monthly Accommodation Occupancy Survey by June 2008.
The Ministry of Transport has:
- recently amended regulations to fix unintended problems arising from a legal technicality which removed the eligibility of certain dealers (primarily boat and trailer dealers) to hold trade plates; and
- removed the requirement for all vehicles with a gross laden weight of less than 6,000kg to have a goods service licence, regardless of whether they are being used for "hire and reward" or not.
The Ministry of Agriculture and Forestry, Ministry for the Environment and ERMA New Zealand have developed proposals to address current problems with the Biosecurity Act/Hazardous Substances and New Organisms Act interface covering the importation of new organisms. The Ministry of Agriculture and Forestry is working with ERMA to address the concerns raised in the Industry Plant Import Action Group report and will be liaising with the Industry Plant Import Action Group as solutions are developed and implemented.
The Inland Revenue Department 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.
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.
Cabinet has agreed to strengthen the offence provision for non-notification of vehicle ownership change, enforceable by Police, local authorities and Land Transport New Zealand – for introduction mid-2007.
Risk insensitivity
To achieve an effective regulatory approach proportionate to level of risk:
The Ministry of Agriculture and Forestry:
- structurally integrated Biosecurity New Zealand and the Ministry's Quarantine Service in July 2007 to better connect policy development, risk analysis, standard setting and implementation functions; and
- notes that 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 requirements will be similar to Biosecurity NZ's new standards. This gives businesses the flexibility to decide how to manage the risks.
The New Zealand Food Safety Authority notes that:
- a key feature of the new programme of wine regulations and notices will be a requirement for 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; and
- Food Hygiene Regulations requirements will be replaced with Food Handler Guidance (a non-regulatory approach) for Bed and Breakfast operators.
Timeliness
To help achieve coordination and greater efficiency of government processes:
The Companies Office and the Inland Revenue Department's Online Application Project has been enhanced in three ways from July 2007:
- applicants are able to apply for GST numbers simultaneously with their IRD numbers;
- IRD and GST numbers are allocated simultaneously; and
- the provision of information from the Companies Office to the Inland Revenue Department now occurs during the lifetime of a company, rather than just the incorporation stage.
The Minister of Immigration introduced an Immigration Bill in mid-2007, which included interim visas for applicants whose permits lapse before their next application is decided. A new policy (the Recognised Seasonal Employer policy) has been introduced for employers in the horticulture and viticulture industries and changes have been made to address delays in processing Approval in Principle applications.
In February 2007 the Customs and Excise Amendment Bill was passed. It aligns the dates for the excise levy and the Alcohol Advisory Council of New Zealand levy paid by the wine industry at 1 July.
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