[ Last Updated 4 September 2007 ]
Short Description
Questions and answers relating to the Review of Regulatory Frameworks.
Why Is the Government Reviewing Regulatory Frameworks?
Regulation and regulatory frameworks play a critical role in shaping the business environment. The Labour-led government's economic transformation agenda seeks to remove constraints on economic growth and continuously improve the quality of regulations.
How Is This Review Different to Other Reviews?
It is broad in scope and has tight timeframes. It has a fast track mechanism to make rapid changes. It will take a whole-of-government approach, which will help examine overlaps in regulations. It will also focus on specific sectors. We're taking both a horizontal and vertical view of regulation and will be getting down to the level of the business.
What Can Government Do About Its Own Processes?
We already have systems in place, but it is clear that these should and can be improved on. We want to be clear to those developing regulation that this government expects sound analysis, effective engagement with parties to be affected and proposals for regulation only where there is a clear case for it. Regulatory Impact Analysis (RIA) is the internationally accepted mechanism for setting out these requirements and we will be looking at strengthening New Zealand's RIA system as part of the review.
How Does Business Get Involved in This Review?
We will encourage business to use existing business networks, e.g. Chambers of Commerce, Business NZ, NZCTU & industry associations to act as a conduit for the review. We will also use the businessconsultation.govt.nz website to provide information on the review and act as a mechanism for business to lodge specific issues and proposed solutions. A roadshow will be developed with key business organisations and run throughout New Zealand.
Who Is Involved in the Quality Regulation Taskforce?
The Taskforce will be led by the Ministry of Economic Development, and include officials from the Treasury, the Department of Prime Minister and Cabinet, the Department of Labour, the Accident Compensation Corporation, the Department of Internal Affairs, the Department of Building and Housing, the Ministry of Transport, the Ministry of Agriculture and Forestry and the Ministry for the Environment.
What Are You Doing to Address Compliance Issues?
We're going to look at any areas of duplication of regulatory requirements that may be giving rise to excessive compliance costs.
We have also raised the idea of a standalone group comprising trade unions, business representatives, academics and government officials that will look specifically at implementation and compliance issues. The idea for such a group was a recommendation made by the Small Business Advisory Group in its first annual report released in August 2004.
Why Look at the Issue from Both a Vertical and Horizontal Perspective?
Regulatory frameworks often intersect within industries and at the individual business level. We often look at how one regulation works across the economy (horizontal) but seldom at the cumulative impact of all regulation on one sector or industry (vertical); for example, how HSE, ACC, HSNO requirements stack up together and impact on business. By looking at both angles, we will develop a richer perspective of the impacts on business and a better understanding of how we can best assist.
How Can We Ensure That the Requirements on Firms and Engagements with Regulators Are Streamlined When There Are Multiple Regulators?
Businesses express frustration when faced with the overlapping and sometimes contradictory interpretations, forms and numbers of visits by regulatory agencies that deal with related regulatory issues. This indicates that the regulatory activities of government agencies may be neither as well integrated nor as efficient as they could be. This will be a key focus of the review.
What Is the Appropriate Level of Regulation or Mix Between Self-Regulation, Co-Regulation and State Regulation?
The appropriate balance along this spectrum is based on a choice of processes to develop, administer and enforce particular regulatory frameworks. It may vary from industry to industry depending on its circumstances.
How Can We Ensure That Those Firms Requiring Certainty About Their Legal Obligations Are Given Certainty and That Those Firms Requiring Flexibility Are Given Flexibility?
Businesses often look for certainty in terms of outcomes and want reassurance that if they meet pre-defined criteria, they are automatically compliant with the legislation (deemed compliance). A lack of certainty arises, particularly in performance-based regulatory frameworks, where it can be difficult or costly for SMEs to establish the threshold for adequate compliance. At the same time, however, regulatory frameworks may have to provide flexibility so that government rules do not unnecessarily constrain the ability of businesses to innovate and take advantage of emerging opportunities. This may be an issue that requires flexibility in approach between different types of businesses.
How Can We Ensure That Monitoring and Enforcement by Regulators Is Appropriately Targeted?
The diverse groups making up the regulated sector exhibit different behaviours and pose different risks to the delivery of agreed policy outcomes. The enforcement strategies chosen by regulators need to reflect this lack of homogeneity and be based on the actual level of risk posed by the regulated party.
What Are the Principles of the Review of Regulatory Frameworks?
The review is based on the principles of efficiency, effectiveness, transparency, clarity and equity. These principles are not new, but in this Review there will be a 100 per cent commitment to ensuring they are met.
What Is the Timetable for the Review?
The review will work initially to a 12-month time horizon and will be heavily focused on delivering workable solutions to the business community and society more broadly. There will be a milestone report to Cabinet in late October 2006, and a further progress report in late March 2007.