More time for govt consultation with business

Ministers have agreed to changes that will give businesses more time to provide input into proposed government regulations or legislation, Economic Development Minister Trevor Mallard said today.

Trevor Mallard said all the ministers who have economic-development related portfolios had agreed to a minimum of three months for consultation on regulations that affect business. They had also agreed to a three-month gap between Parliament or government agreeing to changes and those changes coming into force.

These changes were recommended by the Small Business Advisory Group, an independent group comprising of nine people who are small business owners or advisors to small or medium sized businesses. The government’s response to SBAG’s first annual report was released by Small Business Minister Lianne Dalziel yesterday.

"Through the Small Business Advisory Group, businesses have expressed their concern that it is often difficult for them to engage in the consultation process, due to limited resources. Having a three-month consultation period will help them plan how and when to engage.

"Similarly, these businesses have made it clear that they would find it easier to comply with regulation if there was a reasonable gap between passage and implementation. Such a gap will give businesses time to learn about changes, and to design systems to comply with them."

All the Ministers responsible for economic development-related portfolios had agreed to the changes, said Trevor Mallard. They include the Ministers for Economic Development, Industry and Regional Development, Broadcasting, Energy, Commerce, Tourism, Consumer Affairs, Communications, and Small Business.

Small Business Minister Lianne Dalziel said the government was committed to helping small or medium-size businesses, which are essential to New Zealand’s economic growth.

"About 97 percent of new businesses are small businesses and in the last five years they have accounted for 60 percent of new jobs, so it is vital we do all we can to help small businesses grow and reduce their compliance costs wherever possible," Lianne Dalziel said.

The ministers had also agreed in principle that their agencies will start business-related regulation on predetermined dates each year, Trevor Mallard said.

"Small businesses have indicated that having fewer days on which legislation comes into force would help them keep abreast of legislative changes, to plan and budget for such changes and reduce their information and compliance costs associated with the changes.

"It may seem a relatively small change but for small businesses it would have a very real effect. Of course there would need to be exemptions but the principle is a good one that we will definitely explore further.

"In some cases, such as taxation measures, this is already the norm," Trevor Mallard said.

A copy of the government’s response to the Small Business Advisory Group is available at www.med.govt.nz