22 June 2006

In the budget announcement of the Regulatory Frameworks Review, the Prime Minister said feedback from business suggested revised regulation would lead to more investment. The review is designed to ensure New Zealand’s regulatory environment promotes economic growth, business confidence, globally competitive firms and social wellbeing.

The regulation review will identify constraints to economic growth, together with practical solutions, and mechanisms for fast-tracking them within tight timeframes.

It is estimated that changes recommended in the review process will be implemented within a year.

This drive aims to improve quality and efficiency in regulatory frameworks that are already rating well in international surveys.

New Zealand benchmarks highly internationally: it has led the World Bank “Doing Business” survey for two years out of 155 economies.

An inter-departmental Quality Regulation Taskforce has been formed and given comprehensive terms of reference to drive an in-depth action programme across government, in partnership with business.

It has been given the task of addressing some of the immediate concerns raised in certain sectors, such as how well New Zealand standards are enforced at the border as products come into the country.

Officials will work with the Law Commission and the Legislation Advisory Committee to develop regulatory and statutory tools to “fast-track” changes as required.

Specific sectors will be studied. First up are the food and beverage sector, the wine industry, and the retail and hospitality sectors.

Unveiling details of the review, Commerce Minister Lianne Dalziel said it will make life easier for business where multiple regulatory frameworks intersect, and improve government’s own processes for monitoring the impact of regulations.

The review promises to address duplication of regulatory requirements that may be giving rise to excessive compliance costs.

Regulatory Impact Analysis (RIA) is the internationally accepted mechanism for assessing regulatory requirements that play a critical role in shaping the business environment. The review will strengthen New Zealand’s RIA process, and implement a standard cost model to measure compliance costs.

The www.businessconsultation.govt.nz website will be used to provide information on the review and as an instrument for business to identify specific regulatory barriers and potential solutions. Each of the industry sectors to be studied first – food and beverage, wine, retail and hospitality – has a complete overview of the myriad of regulatory frameworks that apply to it, and is ready to work on solutions.

The hospitality sector has already identified three sets of rules that coincide on Easter weekend: the Holidays Act, the Shop Trading Hours Act and the Sale of Liquor Act. The rules are not the same; for example, Easter Sunday is affected by both the Shop Trading Hours Act and Sale of Liquor Act, but is not a statutory holiday and thus unaffected by the Holidays Act. The reverse is true of Easter Monday.

Taking a fresh look at regulatory frameworks with business to achieve higher quality regulation and reduce the compliance cost deriving from inconsistency between rules will lead to more business growth and investment.

Sector group contacts: