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• Regulatory Policy

• Compliance Costs

• BCC Perceptions Survey

• BCC Survey Summary
• Perceptions of NZ Firms
• Media Statements

Figure 1 - Business' Perception of Constraint on Productivity and Growth

Survey respondents were asked to indicate whether or not various regulatory compliance requirements tended to "divert and distract" firm managers from improving productivity and concentrating on growth.

In relation to most (9/13) of the regulatory categories addressed in the survey, the majority of survey respondents indicated that they "deal readily" with the compliance requirements - notably GST (79%), PAYE (76%), and fair trading requirements (69%).

However, the regulations that the highest proportion of managers felt "divert or distract" them included:

• regulations that apply to releasing a person who no longer suits the business ("firing") - 46% (compared with 39% who deal readily with them)
• ACC insurance regulations - 37% (compared with 59% who deal readily with them)
• health and safety regulations - 32% (compared with 59% who deal readily with them)
• regulations (e.g. Statistics Act) requiring the provision of data to government agencies - 30% (compared with 57% who deal readily with them)

Notably, if the "Not Applicable" and "Don't Know" responses are removed from the survey results, the regulations relating to land/water/air use consents (42%), plant and animal standards (38%), and food labelling standards (47%), also feature as regulations that a large proportion of respondents consider "divert and distract" them.

Figure 2 - Business' Perceived Cost/Benefit of Regulatory Compliance

Survey respondents were asked to indicate whether the costs of complying with different regulatory requirements outweighed the benefits.

In relation to most (9/13) of the regulatory categories addressed in the survey, the majority of survey respondents felt the benefits of compliance either exceeded or balanced the costs. This was particularly so for fair trading (74%), hiring (72%), GST (69%), PAYE (69%), and health and safety (65%) requirements.

These percentages all increase if the "Not Applicable" and "Don't Know" responses are removed from the survey results. Furthermore, with these two categories removed, it is notable that a significant majority of the remaining respondents also considered the benefits stemming from compliance with the requirements for food and drink labelling (73%), plant and animal product standards (75%), as well as environmental requirements (79%), exceeded or balanced the costs.

On the other hand, those regulatory requirements that a significant proportion of respondents felt the costs of compliance exceeded the benefits included:

• regulations that apply to releasing a person who no longer suits the business ("firing") - 43% (compared with 40% who considered the benefits exceeded or were balanced with the costs)
• ACC insurance regulations - 39% (compared with 53% who considered the benefits exceeded or were balanced with the costs)
• regulations (e.g. Statistics Act) requiring the provision of data to government agencies - 37% (compared with 51% who considered the benefits exceeded or were balanced with the costs)

Figure 3 - Types of Business Concerns with Regulatory Requirements

Survey respondents were asked to indicate how regulatory requirements create problems for their firm. Respondents were given a list of possible problems (compiled on the basis of previous international and New Zealand research), and asked to indicate whether these problems were an issue for their firm.

"Especially Distract and Divert Senior Staff Time" was clearly the business concern with which the largest number of respondents could identify (57.8%), although significant numbers (35-40%) of respondents also identified with several other business concerns related to complying with regulations.

As a subsequent step, managers that had responded "Yes" to any of the problems listed above, were asked to specify the particular regulatory requirement(s) that created these problems.

Figure 4 - Legislation Identified as Responsible for Business Concerns

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Employment legislation was identified by more than 25% of survey respondents as the particular compliance requirement that was of concern to them, with OSH and resource management legislation also identified by more than 15% of respondents as the particular compliance requirement of concern.

Figure 5 - Factors that Slow or Restrict Export Growth

The Treasury was specifically interested in eliciting the perceptions of exporters about the constraints and difficulties they face in growing their export business. Consequently, as an addition to the survey's general focus on compliance costs, a sample of exporters was asked to consider a range of factors and indicate whether those factors acted to restrict or slow their export growth.

This part of the survey was not concerned specifically with regulatory compliance costs. However, it did provide an understanding as to how exporters perceive regulatory requirements as a constraint relative to other obstacles. For instance, 55% of exporters indicated that New Zealand's general regulatory requirements were, at least to some extent, a factor inhibiting the growth of their export business. More specifically, 38% indicated New Zealand workplace safety requirements were, at least to some extent, a constraining factor, and 30% indicated that hassles at New Zealand borders were a constraint.

Interestingly, the factor identified by the largest number of respondents (62%) as being a constraining factor was foreign regulation/conditions.

Figure 6 - Changes in Compliance Requirements over Time

Survey participants were asked to indicate how, for firms such as theirs, the time and effort required to comply with government regulations has changed over the last two years.