LUXTON TAKES ACTION TO REDUCE COMPLIANCE AND REGULATORY COSTS

Minister of Commerce and Industry, Hon John Luxton, today announced details of a review that will seek to reduce the costs to business of government regulation.

``Business should be allowed to get on with the job of creating the wealth that we need to pay for meeting our social and environment goals, without unnecessary regulatory costs holding them back,'' Mr Luxton said today.

This review forms part of a bigger package which includes looking at occupational regulations, the OSH, RMA, Building and some other Acts, and the Tariff review.

``I have been saying for some time that we as a Government need to ensure we are not putting barriers in the way of the wealth creators in our economy. Business has been expressing some concern at the compliance and regulatory cost of Government on their efforts. This Review is a first step in seeking to reduce these costs.

The review, managed by the Ministry of Commerce, will seek to enhance the quality of both new regulation and existing regulation, and to achieve best-practices in policy development.

``We already have in place a compliance cost assesment framework to ensure that departments take compliance costs into account in policy development. But we are now also focusing our attention on the wider regulatory costs. Cabinet has now agreed to a broader review of the quality of regulatory interventions.''

Mr Luxton said the review has three components, which are set out below.

Compliance Cost Assessment Framework

evaluate the effectiveness of the existing Compliance Cost Assessment Framework, including its scope. This will include:

assessing the degree to which the Framework has reduced compliance costs from new policies;

assessing the extent to which the Framework contributes to ensuring that regulation effectively meets its objectives, at least cost to the economy; and

examining the merits of extending the definition of compliance costs, to cover a wider range of costs from regulatory interventions. more.... Best Practice Policy Development

make recommendations on options for improving the quality of regulatory proposals. In developing options, the review will:

assess current strengths and weaknesses of existing practices; and

assess best practice approaches in the policy development process, including, but not limited to, the following:

formalising a set of best practice guidelines for policy-makers;

requiring regulatory impact statements;

increasing the awareness amongst policy-makers of best practice approaches, such as educational initiatives;

legislating quality safeguards for new regulation;

improving stakeholder consultation in the development of regulation (including ongoing processes involving the private sector); and

improving regulatory coordination so that multiple objectives are integrated and related policies are treated coherently.
Monitoring and Review of Existing Regulation

consult with the Ministry of Justice, Legislation Advisory Committee, Parliamentary Counsel Office, and other relevant agencies on ways of encouraging adequate monitoring, evaluation and review of existing regulation. This would take into account a range of exercises already underway dealing with legislative processes.
``The private sector has a very important part to play in this process,'' Mr Luxton said. ``I am currently planning a series of meetings with the business sector on a range of business issues, including the costs imposed on businesses by regulation.

``In addition, I will be consulting with key business organisations, such as Federated Farmers, the Manufacturers Federation and the Employers Federation, in relation to the Review. I also propose to look at other forums to get feedback on the specific options as they are developed.

Mr Luxton said he expects an initial report by 30 September 1997.

``It is vital for the prosperity of all New Zealanders that we have an internationally competitive economy. As Minister of Commerce and Industry I hope that we can make some real and tangible progress in this important area,'' Mr Luxton concluded.