Compliance cost calculator welcomed

A new tool to measure the compliance costs of new regulation has been welcomed by Business NZ.

The Business Compliance Cost Calculator was launched by the Government today to help government departments assess the cost of new regulation before it is implemented.

Business NZ chief executive Phil O’Reilly says this will help sharpen the focus on what it costs business to comply with new regulation.

These costs include fees for consents, payments for signs, manuals, software or professional fees and staff time to perform these functions.

“It’s a good move forward and this calculator will be of real assistance if it’s used by government as a tool to genuinely consider how to design and implement regulations.”

The calculator will also help improve consistency in the way regulatory decisions are made and create opportunities for greater international comparison on key pieces of regulation.

The calculator software, assessed through the Ministry of Economic Development, will be trialled for up to two years initially.

Business NZ has found small companies have a compliance burden three times higher than large ones, according to its most recent Compliance Cost Survey, run in partnership with KPMG (October 2007). The burden for small companies (fewer than 10 staff) equates to $2,400 per employee per year, while for companies with more than 50 staff, the figure is $780 per employee per year.

View a summary report of the Business NZ – KPMG Compliance Cost Survey here