Where To From Here?
This report summarised the issues raised by business during the studies of four sectors (horticulture, hospitality, retail and wine), undertaken as part of the government's Quality Regulation Review. It also outlines some of the solutions put in place by government agencies in response to some of the issues raised.
The government is committed to working with business to ensure that their regulatory concerns are identified and addressed in an appropriate and timely manner.
Good progress has been made to address regulatory concerns identified as limitations on business. In some cases, the solutions implemented by government agencies will have positive outcomes that extend beyond the four sectors (for example, improvements to building and resource consent processes).
It has not been possible to address all of the issues raised. In some cases the issues raised relate to the policy underlying regulations, which was explicitly outside the scope of the Review. In others, after careful consideration, relevant agencies considered that some issues did not provide sufficient justification for changing the status quo at this time. There were also issues that, due to their complexity, require further thinking, and these have been included in departmental work programmes that extend beyond the timeframe of the Review.
The feedback obtained from business as part of the sector studies confirms that the quality of regulatory frameworks and the regulatory environment play a key role in determining business growth, productivity and innovation. This means that a commitment to the continuous improvement of the regulatory environment is a key part of achieving our economic goals. However, the necessary changes cannot be achieved by central government alone, and require active support and engagement by others, including local government and business.
In going forward, the government will use the experiences from the Review to inform the future work programme on quality regulation. The government's approach will focus on four key objectives:
- Ensuring the quality of new regulation;
- Improving the quality of existing regulation;
- Developing a culture of good regulatory practice; and
- Building the capability of regulators and business.
From the government's perspective, undertaking detailed analysis of the regulatory frameworks for specific sectors provides opportunities for improving the quality of existing regulation, as well as building the capability of regulators and businesses.
The government intends to build on the work already undertaken, and develop a programme of annual sector studies. The studies will focus on one sector or one piece of cross-sector legislation each year. They will provide an in-depth analysis of the key regulatory issues affecting sectors, including the productivity, innovation and global connectedness of firms, and focus on finding solutions to these issues. To be effective, the studies will require the engagement and buy-in of the relevant sectors and government agencies. The Ministry of Economic Development, in consultation with relevant stakeholders, has been asked to report to Cabinet by 31 March 2008 with detailed proposals for undertaking a programme of annual sector studies, including recommending sectors that could be studied.
In addition to sector studies, the government intends to build on other initiatives undertaken during the Quality Regulation Review. This will include considering ways that the Regulatory Impact Analysis (RIA) requirements, which were strengthened as a result of the Review, could be further enhanced. One area that will be considered carefully is the process around the development of policy proposals for the implementation, monitoring and review of regulatory proposals.
The government is also considering whether a fast track legislative vehicle, such as the proposed Omnibus Bill, could be used as a permanent mechanism for quickly remedying failures in regulatory frameworks. The Ministry of Economic Development intends to consider these matters as part of its 2007/08 work program, and will report to the Minister of Commerce on the outcome of this work as appropriate.
As noted above, the government's approach to quality regulation post-Quality Regulation Review involves key roles for other stakeholders, including local government and business. The type of regulatory environment required to achieve New Zealand's economic goals cannot be achieved by the various stakeholders working alone or in isolation. It is vital that the relationships established between business and sectors, and the government during the Review, are not lost at its conclusion. These relationships have an important role to play in the quality of regulation going forward.
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