Process for the Regulatory Impact Analysis Unit's Views on Adequacy of RIS/BCCSs to Be Included in Cabinet Papers
[ Last Updated 14 December 2005 ]
November 2002
Contents
Background
The Ministry of Economic Development has Guidelines available on the preparation of Regulatory Impact Statements and Business Compliance Cost Statements. It is important to read through the Guidelines to ensure all the requirements for an RIS and a BCCS are met.
The Minister of Commerce has asked that the Regulatory Impact Analysis Unit's views on the adequacy of RIS/BCCSs now be included in Cabinet papers. These comments will deal only with the adequacy of the disclosure and analysis within the RIS/BCCS. They will not include comment on the policy of the proposal in the Cabinet paper.
Process
The Regulatory Impact Analysis Unit will continue to provide comments to departments on all RIS/BCCSs. For the Unit's comments on adequacy to reflect the final version of an RIS/BCCS, the Unit will need to see this, and to see it in a sufficiently timely manner to make an informed assessment.
The key message is send your draft RIS/BCCS to the Regulatory Impact Analysis Unit, at the latest, once you start drafting up your Cabinet paper. A better practice would be to start drafting the RIS/BCCS and consulting the Unit early in the policy development process. That will allow for several iterations to be reviewed and for the adequacy comments to be upgraded according to the development of the RIS/BCCS. Moreover, an opportunity should be available for departments to consider and discuss with the Unit the proposed adequacy comments.
Departments will need time to factor this into their Cabinet paper preparation process and, from 1 August 2002, to include the Regulatory Impact Analysis Unit's comments on the adequacy of their RIS/BCCS in their Cabinet paper. The comment should be included in the information under the Cabinet paper heading "Regulatory Impact and Compliance Cost Statement".
Adequacy
The adequacy comments will focus on an assessment as to whether the level of RIS/BCCS analysis is commensurate with the magnitude of the likely impact of the proposals. In other words, the Regulatory Impact Analysis Unit's attention will be centred on the higher-impact policy proposals. The comments will also note the adequacy of the time allowed by departments for the Unit to review each RIS/BCCS.
Checklist of Adequacy Criteria
A checklist that can be used when preparing an RIS/BCCS or for peer review purposes has been developed. The checklist is available as a PDF (49 KB ) document to print and use, and the questions in the checklist are reproduced below for information.
- Is it clearly stated in the RIS what is the fundamental problem being addressed? Is a case made for why government action is needed?
- Is there a clear articulation of the policy objectives sought by government action? Have the outcomes, goals or targets of the proposed government action been reflected in the policy objective statement?
- Is a range of viable options assessed including, as appropriate, non-regulatory options? Is there a clear statement as to which is the preferred option and why?
- Have the regulatory costs been specified and the groups likely to be affected by them identified? Have the impacts of the costs on each group been identified? Both costs and benefits for each viable option must be addressed, making use of quantitative information where possible, however, the fullest disclosure of costs and benefits should be directed to the preferred option.
- What was the form of consultation? Have the views of those consulted been articulated, including substantial disagreements? If no consultation was undertaken, there must be an explanation as to why not.
- Have the sources of compliance costs on business been identified and clearly articulated in the BCCS? Is there a clear statement as to which of those costs are one-off and which are recurring or on-going?
- Have the parties likely to be affected been identified by size and sector and, where possible, the numbers in each category stated?
- Has information been provided on quantitative (where appropriate) and qualitative estimates of compliance costs?
- Is there a clear statement of the longer term implications of the compliance costs?
- Is there an assessment of the risks associated with any of the estimates set out in the BCCS? Have the assumptions underlying the estimates been articulated? Has any uncertainty regarding the estimates been articulated?
- Have specific views on compliance costs issues that were expressed during consultation been articulated in the BCCS?
- Have compliance requirements that overlap with those of other agencies been identified?
- Is there a clear statement as to the steps taken to ensure that compliance costs have been kept to a minimum for the proposal?
- Will adequate time be allowed by the Department/Ministry for the Regulatory Impact Analysis Unit to review the RIS/BCCS?
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