LUXTON ANNOUNCES INTRODUCTION OF REGULATORY IMPACT STATEMENTS

From 1 July 1998, policy proposals put to Cabinet that have legislative or regulation implications will be required to be accompanied by Regulatory Impact Statements (RIS), Minister of Commerce, Hon John Luxton announced today.

"To retain investment and jobs in this country, we have to provide a world-best environment for doing business. The RIS is designed to encourage both politicians and policy advisors to focus their minds on more innovative and less costly solutions to problems than simply resorting to legislation.

"The RIS will be required at the time that ?in principle? or final decisions on policy are sought from Cabinet (unless an exemption applies). The RIS will essentially provide summary information (in two or three pages) on the basis of proposals for regulatory action and aims to ensure proposals are necessary, cost effective, and in the best interest of society, " Mr Luxton said.

The RIS will contain:

- a statement of the nature and magnitude of the problem and the need for government action;
- a statement of the public policy objective(s);
- a statement of feasible options (regulatory and/or non regulatory) that may constitute viable means for achieving the desired objective(s);
- a statement of the net benefit of the proposal and other feasible options, including the total regulatory costs (administrative, compliance, and economic costs) and benefits (including non-quantifiable benefits) of each option; and
- a statement of the consultative programme undertaken.

The requirement for an RIS is an important component of the previously announced "Six pack" aimed to increase regulatory responsibility and the quality of government intervention. The Six pack also includes a generic policy development process, a code of good regulatory practice, a review of specific pieces of legislation, the establishment of a regulatory taskforce and development work on a Regulatory Responsibility Act. Work is continuing on these initiatives.