Timeliness
Interviewees raised some matters that related principally to the process around regulatory compliance. They would like to know that requests for information or other compliance are coordinated across government and government processes are efficient.
Summary of the issues:
Businesses were particularly frustrated by "red-tape" bureaucratic process delays. Paperwork and other delays can significantly affect business process. An example of an area where delays can have a wide-ranging impact is immigration, where quickly ascertaining workers' immigration status can make a huge difference to the ability of a business to carry out its role. A more narrow issue raised was the Inland Revenue Department's processing of notifications that an employee has left a business. As minor delays add weight to the cumulative burden of regulatory compliance, this is an area where even small improvements could yield real benefits for business.
Businesses noted some instances where compliance burdens fall at inconvenient or inappropriate times that could be avoided. The nature of this issue varies. It can be to do with process requirements falling at the same time and compounding the impact on businesses. Conversely, it could do with requirements falling at different times and thereby making businesses go through similar processes on multiple occasions.
Another process problem is around short notification periods for changes. If insufficient time is provided to enable necessary adjustments to be made well in advance, business confidence can suffer.
How business sees it:
The date for the increase in the Alcohol Advisory Council of New Zealand levy does not fall at the same time as excise payments. [wine]
Grape growers must estimate their income in October, but crop size cannot be accurately estimated before flowering. If too little provisional tax is paid, the grower must pay use of money interest at a high level on top of penalties. [wine]
Businesses get insufficient notice of minimum wage changes. [retail]
Consultation on the new Electronic Monitoring System Game Rules began in late December 2005 and closed on 1 February 2006. The rules were received the day before they came into effect. [hospitality]
There are no penalties for failing to meet the 20-day timeframe for issuing building consents. It took 120 days for a consent to be issued to a restaurant in Auckland, and the business carried many of the costs – despite the Council having a sign saying it could take 60 days. [hospitality]
Because the Council did not expedite notification of a resource consent application, the interviewee incurred substantial ongoing costs. [wine]
Testing of imported goods can delay the product for up to four weeks. Some items have to be retested despite being identical to previously tested products. [retail]
Government initiatives to address process issues include:
The Companies Office and 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 Department of Labour is working on a new immigration business model, to help with consistency, timeliness and to increase the use of technology for both immigration officers and customers. It will include resources for closer work with employers, and better information about recruiting foreign workers. An Immigration Bill which is due for introduction in mid-2007 will include 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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