Appendix Two: Code of Good Regulatory Practice
In aiming to improve the regulatory environment for business, the Quality Regulation Review takes the Code of Good Regulatory Practice as a guide. Although the Code is primarily expressed in terms of regulatory design, its principles are applicable to the implementation and administration of regulation. In short, these principles are:
- efficiency: adopt and maintain only regulations for which the costs on society are justified by the benefits to society, and that achieve objectives at lowest cost, taking into account alternative approaches to regulation;
- effectiveness: regulation should be designed to achieve the desired policy outcome;
- transparency: the regulation-making process should be transparent to both the decision-makers and those affected by regulation;
- clarity: regulatory processes and requirements should be as understandable and accessible as practicable; and
- equity: regulation should be fair and treat those affected equitably.
These principles provide useful benchmarks against which issues and solutions can be assessed. When putting forward policy proposals, departments are required to confirm that the principles of the Code of Good Regulatory Practice have been complied with, and that their regulatory impact analysis has been undertaken in accordance with the Regulatory Impact Analysis regime.
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