Presentation on theme: "Seminar on Regional Capacity-building : A Presentation on Regulatory Impact Analysis in Ireland Tunis, Tunisia, 15 Feb. 2007 Tom Ferris Economist Ireland."— Presentation transcript:
Seminar on Regional Capacity-building : A Presentation on Regulatory Impact Analysis in Ireland Tunis, Tunisia, 15 Feb. 2007 Tom Ferris Economist Ireland
Content of Presentation 1. What is RIA ? 2. Where does RIA come from? 3. Why have RIA ? 4. How is RIA carried out ? 5. Are there RIA results available ? 6. Who should be consulted on RIA ? 7. Whither RIA ?
(1)What is Regulatory Impact Analysis? It is a framework for assessing the likely effects of a proposed regulation, or of regulatory change It involves assessment of the impacts, side effects and costs of regulation It includes structured consultation with stakeholders and citizens It should be applied at early stage in the regulatory cycle – preferably before Government decides to regulate It is not a substitute for decision-making but can help to inform policy decisions
RIA Can Help Identify… All the relevant costs and benefits Considers scope for ‘no policy change’ Alternative forms of regulation Alternatives to regulation Alternative implementation and design options Relevant proposals that merit examination, while recognising that proportionality must be taken into account
(2) Whence RIA in Ireland ? Influence of OECD and EU on RIA in Ireland “Delivering Better Government” (Irish Government 1996) Public Service Modernisation Act 1997 OECD, Regulatory Reform in Ireland, 2001 “Regulating Better” (Irish Government 2004) Cabinet 2005 Decision – RIA on all new regulations “Towards 2016”, 10-Year Partnership Agreement
White Paper, ‘Regulating Better’, Dublin, January 2004 Six Principles of Better Regulation Adopted Action Programme for Better Regulation www.betterregulation.ie
(3)Why Have RIA ? To clarify justification for Regulation To assess alternatives (taxes, grants or fines) To identify costs and benefits To facilitate consultation To ensure there is a full awareness of what enforcement will be required To alert those who will be affected of the compliance costs To ensure “no surprises”
RIA : Need to address Enforcement and Compliance Are proposals enforceable? e.g. resources Who will enforce them? How will consistency and accountability be ensured? What are compliance targets? Do benefits justify compliance costs ?
(4)How to do RIA ? Two phased approach used in Ireland : Screening RIA Applied to all primary legislation involving changes to regulatory framework, significant Statutory Instruments and draft EU Directives and EU Regulations Full RIA Only conducted where Screening RIA suggests significant impacts (six criteria identified above) or significant costs (initial cost of €10 million or cumulative costs of €50 million over 10 years)
How to do Screening RIA ? Screening RIA to be applied to: All primary legislation involving Changes to regulatory framework, Significant Statutory Instruments Draft EU Directives or Regulations
And Screening RIA involves ? Description of policy context, objectives and policy options/choices Identification of cost, benefits and other impacts of options Informal consultation including Government Departments, consumer and other interests Description of how enforcement and compliance will be achieved Review – how will performance of regulations be measured?
How to do Full RIA ? Full RIA only conducted where the Screening RIA suggests: Significant impacts on Economy (listed by the Irish Government in www.betterregulation.ie www.betterregulation.ie Significant costs (initial cost of €10 million or cumulative costs of €50 million over 10 years) International experience suggests Full RIA in only 10-15% of cases
And Full RIA involves ? More detailed analysis of options More in-depth analysis of impacts including in some cases Cost Benefit Analysis Formal consultation, not informal Summary of pros and cons of each option and identification of a recommended option where appropriate
(5): What Results ? Draft RIA model developed in 2001 White Paper Regulating Better committed to piloting RIA prior to its introduction in all Government Departments/Offices Five Departments agreed to pilot RIA A Steering Group formed and economic assistance provided This piloting gave the first RIA results in 2005
Pilot Departments/Offices Health and Children Medical Practitioners Bill Enterprise, Trade and Employment Export Controls Bill Office of the Revenue Commissioners Betting Duty Regulations Justice, Equality and Law Reform Coroners Bill Environment, Heritage and Local Government Draft EU Groundwater Directive
A Simple RIA On “FITNESS” Of Delegates Tunis Conference 15 february 2007
Tunis Conference Results of Simple RIA Objective : To become fitter Alternatives: A lot; A little; No exercise Costs: Energy used Benefits: Better blood circulation Consultation: Yes we consulted Compliance: You all complied Feedback: Good feedback
(6) Consultation a Priority To assist the decision-making process To contribute to evidence-based policy making To help identify possible alternatives to regulation To strengthen focus of policy makers on the needs of the public and end-consumer
Government Commitment to Consult under RIA Government’s 2004 White Paper ‘Regulating Better’ : Action Plan 5.1 Procedures and Guidelines will be developed to promote better quality public consultation and to outline a full range of consultation options. Consideration will be given to the mechanisms for ensuring balanced coordination procedures, taking care to consider the particular requirements for ‘not-for-profit’ groups www.betterregulation.ie
Plan for Consultation Decide what is purpose of consultation What do you want to achieve / questions you want answered Who to consult and timeframes? RIA can help to identify all stakeholders How to make stakeholders aware? Are outside experts or consultants required? Compliance with legal obligations Data Protection, Freedom of Information, Equal Status etc.
Feedback and Review are Critical Give feedback to key players and those who participate Publish and acknowledge submissions made (taking account of data protection etc.) Review the consultation process
(7) Whither RIA ? RIA can further help to improve the quality of governance through increasing the use of evidence- based decision-making RIA can help by enhancing the transparency and legitimacy of the regulatory process But the introduction of RIA must first take into account local existing procedures and practices There may be need for adaptation and adjustment to current structures and processes
For RIA to succeed… High level administrative and political support Development of RIA network for sharing of experience and best practice Ongoing liaison with EU colleagues especially Directors of Better Regulation ‘Learning by doing’ – RIA very much an iterative process Awareness-raising and training very important Ensure sufficient resources
Challenges for RIA Yes, many elements of RIA already there But traditional ways will be challenged Key players will feel some discomfort! And yet if RIA is well explained there can be real benefits for the main players and in the public interest
RIA Publications from Department of the Taoiseach RIA Guidelines : How to conduct a Regulatory Impact Analysis (2005) A Report on the Introduction of Regulatory Impact Analysis (2005) Reaching out : Guidelines on Consultation for Public Sector Bodies (2005) www.betteregulation.ie