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Reducing Red Tape Within Government Rex Deighton-Smith

Reducing Red Tape Within Government Rex Deighton-Smith. OECD Meeting of Senior Budget Officials Vienna, 2 June 2008. The red tape problem. Problem analysis Lack of knowledge of actual requirements (“myths”) Limited understanding of costs of internal regulatory requirements

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Reducing Red Tape Within Government Rex Deighton-Smith

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  1. Reducing Red Tape Within GovernmentRex Deighton-Smith OECD Meeting of Senior Budget Officials Vienna, 2 June 2008

  2. The red tape problem • Problem analysis • Lack of knowledge of actual requirements (“myths”) • Limited understanding of costs of internal regulatory requirements • Adoption of unduly risk-averse policies • Major areas of concern identified: • Government wide:Procurement & recruitment • Internal to agencies: chief executive’s financial delegations, chief executive’s instructions

  3. Solutions implemented • Adoption of specified processes for developing new rules, including: • problem analysis, • identifying options, • BCA, • stakeholder consultation, • independent advice • Regular reviews required • Correcting myths • Adoption of a “myths vs realities” framework

  4. Comments on the programme • New processes closely reflect regulatory reform best practices • Underlying issue of risk aversion also a theme re: external regulation • Potential to “optimize” internal regulation is high: • costs/benefits are more readily determined • Potential gains also seem substantial • Due to the scale of govt procurement & recruitment operations

  5. Broader application? • The Australian reform programme appears to be a new innovation • However, the problems identified are likely to be widely experienced • Adopting a system based process is sound • Potential gains from change are large • May be merit in a review of: • Scale of problems • Other programmes in this area

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