Regulatory Quality & Administrative Simplification Update on developments in New Zealand Liz MacPherson Deputy Secretary NZ Ministry of Economic Development

Framework for analysis: Draft Overcoming Barriers to Administrative Simplication Strategies Guidance  Targeting simplification efforts  Institutional design  Tools: Better regulatory management Organisational re-engineering New ICTs Better information on services and administrative requirements Coordination of multiple requirements

Targeting simplification efforts  No specific reduction targets as yet – need to ensure goals are meaningful (reduce gaming) and measurable  Focus on “Best in class” internationally  Use of surveys to develop rich picture of regulatory/compliance burden  Trans-Tasman dimension important: Single compliance for a Single Economic Market Looking to participate in Australian Performance of Business Regulation benchmarking  Myth-busting - perception is reality  Focus on “getting out there”

Institutional design  Strategic partnership arrangment: NZ Treasury – responsibility for strategic coordination of regulatory quality system Ministry of Economic Development – leads strategy for reducing impacts on regulation on firms (productivity, growth, innovation, international linkages)  Legislative Design Committee and Legislative Advisory Committee – good law  Small Business Advisory Group

Better regulatory management  Flow of regulation Improvements to RIA regime – significance test Independent audit of assessments RIA Reference Group – self-regulatory Regulatory flexibility RIA Reference guidelines  Stock of regulation Systematic Review programme Cumulative burden Consideration of sunset clauses  Expert Taskforce on Regulatory Quality: Regulatory quality law?  Business Compliance Cost Calculator  Annual “Ease of Doing Business” Bill

Organisational Re-Engineering  Best Practice Enforcement Guidelines – implementation is critical  Reducing duplication and overlap: E.g. Inspections – one inspector can do inspections for OSH, Hazardous Substances, Accident Compensation and other issues  Virtual vs structural: Companies Office/IRD – one stop for business registration and tax number

Exploiting New ICTs  NZ status as 1 st in world to start a business is due to exploiting potential of ICTs  Improved quality and efficiency of service delivery while reducing fees to business  Single authentication number for engaging with government  Business Portal – virtual one-stop shop  CAVEAT – ensure ICTs remain the MEANS not the END, and use in simplification strategy is in sync with national ICT strategy

Better information on delivery of services and administration requirements  eBusiness Monthly s – updates on legislative requirements, new services, information etc  Business Portal – many individual websites already have information on how requirements and “how to comply”. Ambition is to follow Canadian best practice re “SmartForms”  Small Business Regional Information Seminars  APEC “Ease of Doing Business” Seminars – NZ and Canada as sponsors

Coordination of multiple requirements  NZ currently undertaking detailed cost/benefit analysis of Standard Business Reporting – business should have to report only once. Joint MED, Statistics NZ and Inland Revenue exercise.  Single Business Number – looking at trans-Tasman approach

Conclusions  Guidelines are useful – potential to better link key strategy elements with 22 points for success.  Qualify statements re target setting – need to be meaningful and measureable. Be mindful of incentive effects.  Some potential overlaps between tools  Communication!!!!  Agree with avoiding “one-size” approach – but some consistency to facilitate bench-marking would be useful.  No substitute for actual experience – get staff into businesses to “feel the pain”