Regulation Review Business Fixes Already Started
The government is making life easier for business with a range of fixes being introduced across a number of departments, Commerce Minister Lianne Dalziel says.
Speaking at a Papakura business breakfast in Auckland today, Lianne Dalziel gave a mid-point report on the progress of the Quality Regulation Review, and said that while she was pleased there had already been runs on the board there were still considerable gains to be made.
"We are not waiting until the end of the review but have been fast-tracking solutions to regulatory issues raised wherever feasible."
Lianne Dalziel said that New Zealand's regulatory environment stacked up well in international comparisons and this was backed up by feedback from business, but some businesses still expressed concerns over the implementation and administration of regulations and the compliance requirements involved.
A major benefit of the review was that it had given business the chance to be heard on even the smallest of issues, Lianne Dalziel said.
"The process has been excellent – both from my point of view as minister and from the point of view of business thinking about solutions as well."
Lianne Dalziel said themes had emerged through the review about how regulation was designed, implemented and administered. These included:
poor information sharing and coordination across government agencies that collected the same information;
inconsistencies across (and sometimes within) jurisdictions over the interpretation, implementation and enforcement of regulation, including at local authority level;
regulation disproportionate to the real level of risk or that disregards prior track records (e.g. in relation to licensing requirements); and
concerns about the cumulative impact of regulation on business (i.e. the impact of the volume of all the regulatory requirements together, not just individual pieces).
Lianne Dalziel said progress already made included:
ACC and Inland Revenue have agreed to improve the coordination of data collection and share information on businesses;
the Department of Labour is developing guidance on how to manage the health and safety of contractors;
Inland Revenue is adding issues, like what constitutes an invoice for GST purposes, to the Tax Policy Work Programme;
the Ministry of Health is reviewing the contractual and legislative requirements for audits of health service providers; and the Department of Building and Housing, the Department of Internal Affairs, the Ministry for the Environment and Local Government New Zealand have a detailed work programme designed to resolve issues where building and resource consents processes coincide;
the due dates for the excise levy and the Alcohol Advisory Council of New Zealand (ALAC) levies paid by the wine industry are now aligned to 1 July;
Pending improvements include:
addressing the compliance costs for business under HSNO, with several amendments to HSNO law planned;
the Department of Internal Affairs is publishing guidelines to assist central government agencies consider the most appropriate role for local authorities in regulation;
Statistics New Zealand is to reduce duplicated information collection;
Inland Revenue is reviewing ways of improving systems and information regarding client overpayments ;
the Department of Labour is improving employer understanding of parental leave and paid parental leave entitlements; and
the Ministry of Economic Development is leading a cross-government project to identify options for improved communication with business around regulation.
Lianne Dalziel says the Labour-led government is serious about its commitment to New Zealand businesses.
"As well as making these fixes, we have taken steps to improve our own processes. The strengthened regulatory impact analysis regime makes it clear that this government expects sound cost-benefit analysis, effective engagement with stakeholders and proposals for regulation only where there is a clear case for it."
Questions and Answers
Within this section…
What Is the QRR All about?
Why Is the Government Reviewing Regulatory Frameworks?
What Has the QRR Achieved So Far?
What about the Things That Have Generated a Lot of Publicity, Such as ACC, Taxes, Holiday Act Provisions?
How Involved Was Business in the QRR?
Who Is Involved in the Quality Regulation Taskforce?
What Is the Government Doing to Address Compliance Issues?
Why Look at the Issue from Both a Vertical and Horizontal Perspective?
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?
Where Can We Get More Information about the QRR at This Mid-Way Point?
What Is the QRR All about?
The government aims to make it easier for businesses to operate and grow. The Quality Regulation Review grew out of this desire, and has a two-pronged approach: to smooth current regulation; and to ensure future regulation interactions are positive.
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 barriers to economic growth and continuously improve the quality of regulations.
What Has the QRR Achieved So Far?
Government has better information on what's important for business. Some streamlining has already happened - for example, ACC and Inland Revenue have agreed to improve the coordination of data collection and share information on businesses, and the due dates for the excise levy and the Alcohol Advisory Council of New Zealand (ALAC) levies paid by the wine industry are now aligned. Other initiatives are pending, such as a review of the interface between the HSNO and Biosecurity Acts.
The QRR has also helped strengthen Government's internal processes such as the Regulatory Impact Analysis (RIA). As of April 1, 2007, all proposed regulatory interventions get more rigorous scrutiny before they end up on ministers' desks for decisions. RIA is the internationally accepted mechanism for ensuring proposed regulations are justified, cost-effective and do what they're supposed to.
Results so far show that the government is listening and is working to deliver improvements for business.
What about the Things That Have Generated a Lot of Publicity, Such as ACC, Taxes, Holiday Act Provisions?
These issues are outside the scope of the review. Having said that, the Department of Labour has implemented an online calculator of Holiday Act entitlements to make it easier for employers, and other online resources are proposed.
How Involved Was Business in the QRR?
Business has been closely involved in the review process. Existing business networks, e.g. Chambers of Commerce, Business NZ, NZCTU and industry associations have acted as a conduit for business input to the review. Individual businesses in four sectors have been interviewed about what they see as priorities and issues.
Who Is Involved in the Quality Regulation Taskforce?
The Taskforce is led by the Ministry of Economic Development, and includes 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 Is the Government Doing to Address Compliance Issues?
We've looked at areas of duplication of regulatory requirements that may be giving rise to excessive compliance costs and are investigating ways of reducing duplication wherever possible.
We are also considering 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. This will be covered in the final report.
Why Look at the Issue from Both a Vertical and Horizontal Perspective?
Regulatory frameworks often intersect within industries and at the individual business level. There is a tendency to look mostly at how one regulation works across the economy (horizontal) but seldom at the cumulative impact of many regulations on one sector or industry (vertical); for example, how HSE, ACC, HSNO requirements stack up together and impact on individual businesses. By looking at both angles, we develop a richer perspective of the impacts on business and a better understanding of how we can best assist.
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. 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.
Speaking at a Papakura business breakfast in Auckland today, Lianne Dalziel gave a mid-point report on the progress of the Quality Regulation Review, and said that while she was pleased there had already been runs on the board there were still considerable gains to be made.
"We are not waiting until the end of the review but have been fast-tracking solutions to regulatory issues raised wherever feasible."
Lianne Dalziel said that New Zealand's regulatory environment stacked up well in international comparisons and this was backed up by feedback from business, but some businesses still expressed concerns over the implementation and administration of regulations and the compliance requirements involved.
A major benefit of the review was that it had given business the chance to be heard on even the smallest of issues, Lianne Dalziel said.
"The process has been excellent – both from my point of view as minister and from the point of view of business thinking about solutions as well."
Lianne Dalziel said themes had emerged through the review about how regulation was designed, implemented and administered. These included:
poor information sharing and coordination across government agencies that collected the same information;
inconsistencies across (and sometimes within) jurisdictions over the interpretation, implementation and enforcement of regulation, including at local authority level;
regulation disproportionate to the real level of risk or that disregards prior track records (e.g. in relation to licensing requirements); and
concerns about the cumulative impact of regulation on business (i.e. the impact of the volume of all the regulatory requirements together, not just individual pieces).
Lianne Dalziel said progress already made included:
ACC and Inland Revenue have agreed to improve the coordination of data collection and share information on businesses;
the Department of Labour is developing guidance on how to manage the health and safety of contractors;
Inland Revenue is adding issues, like what constitutes an invoice for GST purposes, to the Tax Policy Work Programme;
the Ministry of Health is reviewing the contractual and legislative requirements for audits of health service providers; and the Department of Building and Housing, the Department of Internal Affairs, the Ministry for the Environment and Local Government New Zealand have a detailed work programme designed to resolve issues where building and resource consents processes coincide;
the due dates for the excise levy and the Alcohol Advisory Council of New Zealand (ALAC) levies paid by the wine industry are now aligned to 1 July;
Pending improvements include:
addressing the compliance costs for business under HSNO, with several amendments to HSNO law planned;
the Department of Internal Affairs is publishing guidelines to assist central government agencies consider the most appropriate role for local authorities in regulation;
Statistics New Zealand is to reduce duplicated information collection;
Inland Revenue is reviewing ways of improving systems and information regarding client overpayments ;
the Department of Labour is improving employer understanding of parental leave and paid parental leave entitlements; and
the Ministry of Economic Development is leading a cross-government project to identify options for improved communication with business around regulation.
Lianne Dalziel says the Labour-led government is serious about its commitment to New Zealand businesses.
"As well as making these fixes, we have taken steps to improve our own processes. The strengthened regulatory impact analysis regime makes it clear that this government expects sound cost-benefit analysis, effective engagement with stakeholders and proposals for regulation only where there is a clear case for it."
Questions and Answers
Within this section…
What Is the QRR All about?
Why Is the Government Reviewing Regulatory Frameworks?
What Has the QRR Achieved So Far?
What about the Things That Have Generated a Lot of Publicity, Such as ACC, Taxes, Holiday Act Provisions?
How Involved Was Business in the QRR?
Who Is Involved in the Quality Regulation Taskforce?
What Is the Government Doing to Address Compliance Issues?
Why Look at the Issue from Both a Vertical and Horizontal Perspective?
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?
Where Can We Get More Information about the QRR at This Mid-Way Point?
What Is the QRR All about?
The government aims to make it easier for businesses to operate and grow. The Quality Regulation Review grew out of this desire, and has a two-pronged approach: to smooth current regulation; and to ensure future regulation interactions are positive.
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 barriers to economic growth and continuously improve the quality of regulations.
What Has the QRR Achieved So Far?
Government has better information on what's important for business. Some streamlining has already happened - for example, ACC and Inland Revenue have agreed to improve the coordination of data collection and share information on businesses, and the due dates for the excise levy and the Alcohol Advisory Council of New Zealand (ALAC) levies paid by the wine industry are now aligned. Other initiatives are pending, such as a review of the interface between the HSNO and Biosecurity Acts.
The QRR has also helped strengthen Government's internal processes such as the Regulatory Impact Analysis (RIA). As of April 1, 2007, all proposed regulatory interventions get more rigorous scrutiny before they end up on ministers' desks for decisions. RIA is the internationally accepted mechanism for ensuring proposed regulations are justified, cost-effective and do what they're supposed to.
Results so far show that the government is listening and is working to deliver improvements for business.
What about the Things That Have Generated a Lot of Publicity, Such as ACC, Taxes, Holiday Act Provisions?
These issues are outside the scope of the review. Having said that, the Department of Labour has implemented an online calculator of Holiday Act entitlements to make it easier for employers, and other online resources are proposed.
How Involved Was Business in the QRR?
Business has been closely involved in the review process. Existing business networks, e.g. Chambers of Commerce, Business NZ, NZCTU and industry associations have acted as a conduit for business input to the review. Individual businesses in four sectors have been interviewed about what they see as priorities and issues.
Who Is Involved in the Quality Regulation Taskforce?
The Taskforce is led by the Ministry of Economic Development, and includes 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 Is the Government Doing to Address Compliance Issues?
We've looked at areas of duplication of regulatory requirements that may be giving rise to excessive compliance costs and are investigating ways of reducing duplication wherever possible.
We are also considering 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. This will be covered in the final report.
Why Look at the Issue from Both a Vertical and Horizontal Perspective?
Regulatory frameworks often intersect within industries and at the individual business level. There is a tendency to look mostly at how one regulation works across the economy (horizontal) but seldom at the cumulative impact of many regulations on one sector or industry (vertical); for example, how HSE, ACC, HSNO requirements stack up together and impact on individual businesses. By looking at both angles, we develop a richer perspective of the impacts on business and a better understanding of how we can best assist.
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. 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.