Where to from Here?
The Business Compliance Cost Perceptions Survey adds to a knowledge base around compliance costs being developed through a variety of research and initiatives (e.g. the Ministerial Panel on Business Compliance Costs, the Business Practices and Performances Survey and the subsequent Firm Foundations report, and the SME "Good Regulation" Project).
This work needs to continue in order to refine understanding of the impact of regulation and compliance costs on business growth and innovation - key tenets of the government's Growth and Innovation Framework (GIF). For instance, policy solutions to compliance cost concerns would be enhanced by a clearer distinction between compliance costs and the direct and other costs stemming from regulation. Reducing these costs and improving the regulatory environment for business is a key factor to economic growth and development.
MED will be integrating the findings of the perceptions survey with other available public sector, private, and international research in order to "pin down" the most pressing compliance cost issues and identify where the most gains can be achieved.
In the meantime, the government's focus on compliance cost reduction will carry on through a number of means.
First, the RIS/BCCS process will continue to be refined and its application by departments improved through training. This will enhance and make more transparent the consideration of compliance costs during the regulatory decision-making process.
Second, individual government agencies will concentrate on minimising the difficulties associated with regulatory change through the use of Test Panels (such as the Panel that provided advice during implementation of the Health and Safety in Employment Amendment Act 2002) education campaigns, and through the increased availability of information of regulatory requirements and regulatory change. Widespread departmental efforts to disseminate this information are already underway, particularly through increased use of the internet. Notably, the government's recently launched one-stop business portal, which provides co-ordinated access to business services across government (e.g. IRD, Department of Labour, ACC, Companies Office), has already been well received by the business community. Its capacity capabilities will continue to be expanded.
Third, there are a number of specific initiatives focused on the reduction of compliance costs already underway across government. For instance, the government's ongoing tax simplification programme, and the Department of Labour's SME "Good Regulation" Project and Small Business Assistance Active Pilot. Both of the latter will involve SMEs working closely with government departmental and agency staff to find new and innovative ways for interacting.
Finally, the government is well aware of the very important role that small businesses play in the New Zealand economy, and that they must be given every opportunity to innovate and grow their businesses. Consequently, an SME Directorate has been recently established within MED and charged with interacting with business and reflecting and advocating those views and concerns of SMEs in relation to government regulatory proposals. The SME Directorate is also responsible for servicing a Small Business Advisory Group (SBAG) made up of business individuals and responsible for providing the SME perspective to government on regulatory proposals. The government also recognises that compliance costs fall disproportionately on small businesses, and consequently, both the SME Directorate and the SBAG will play an important role both advising and supporting the government's compliance cost reduction programme.
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