COAG Regulatory Best Practice and Regulation Impact Statements

1. COAG Regulatory Best Practice and Regulation Impact Statements Greetings. Introduction self & speakers. Housekeeping � feedback forms. Greetings. Introduction self & speakers. Housekeeping � feedback forms.

2. Objectives To improve your understanding of: the rationale underlying regulatory impact analysis (RIA) COAG�s RIA requirements and OBPR�s role The rationale underlying regulatory impact analysis What the COAG RIA requirements involve and what you have to do. The role of the OBPR in assisting you to meet the RIA requirements. The rationale underlying regulatory impact analysis What the COAG RIA requirements involve and what you have to do. The role of the OBPR in assisting you to meet the RIA requirements.

3. Outline 10 am Part 1 � Regulatory best practice/ COAG requirements 11-11:15am � morning tea 11:15am Part 2 � RIS 12pm � Questions /Finish General timelines for the training. Aim to be finished around 12pm This training session will give you a broad outline of the requirements. We have included in your kits a copy of the COAG Guide which will provide you with more information on the COAG requirements. But this is not a case of �one size fits all� and neither this session or the Guide can provide all the answers for every situation. The most important message I can give you is to come and talk to us and consult with us early in your policy development process. But hopefully this session will improve your understanding and awareness of the requirements.General timelines for the training. Aim to be finished around 12pm This training session will give you a broad outline of the requirements. We have included in your kits a copy of the COAG Guide which will provide you with more information on the COAG requirements. But this is not a case of �one size fits all� and neither this session or the Guide can provide all the answers for every situation. The most important message I can give you is to come and talk to us and consult with us early in your policy development process. But hopefully this session will improve your understanding and awareness of the requirements.

4. Rationale underlying regulatory impact analysis

5. Culture of risk avoidance Over-reaction to perceived risks Lack of appreciation of costs imposed Lack of balance between risks and costs � has resulted in � I don�t want to spend too much time on the history of RIS requirements but it is useful to note why there has been a push for the introduction and enhancement of Regulatory Impact Analysis. There are a number of factors that have been the impetus for RIA. There is a growing view that we have developed a culture of risk avoidance. That there is often an over-reaction or knee-jerk reaction to perceived risks and that in the rush or driving need to address these perceived risks there is a lack of appreciation of the costs imposed by the regulations which are introduced and a lack of balance between the real risks and the costs arising from our actions. This has resulted in an increase in regulatory burdenI don�t want to spend too much time on the history of RIS requirements but it is useful to note why there has been a push for the introduction and enhancement of Regulatory Impact Analysis. There are a number of factors that have been the impetus for RIA. There is a growing view that we have developed a culture of risk avoidance. That there is often an over-reaction or knee-jerk reaction to perceived risks and that in the rush or driving need to address these perceived risks there is a lack of appreciation of the costs imposed by the regulations which are introduced and a lack of balance between the real risks and the costs arising from our actions. This has resulted in an increase in regulatory burden

6. Increasing regulatory burden Unnecessarily complex regulations Excessive costs of compliance Adverse and unintended effects Use of substantial taxpayer resources Business has become increasingly vocal about compliance and other burdens associated with the increase in regulation that Australia has experienced over the last two decades. The COAG RIS requirements were introduced around 1995 to address concerns by business that regulatory regimes were unnecessarily complex, costly, too prescriptive, and that they stifled innovation. These concerns were echoed in a report released last year by the former PM�s taskforce on reducing the regulatory burdens on business � also known as the Banks Report. The Banks Report noted that since 1990, the Australian Parliament passed more pages of legislation than were passed in the first 90 years since Federation. This helps to illustrate the growing volume � and complexity - of regulations. Submissions to the Banks review indicated that up to 25% of senior management time in large companies is taken up with regulatory compliance matters � and the % for smaller businesses is even greater. Business has become increasingly vocal about compliance and other burdens associated with the increase in regulation that Australia has experienced over the last two decades. The COAG RIS requirements were introduced around 1995 to address concerns by business that regulatory regimes were unnecessarily complex, costly, too prescriptive, and that they stifled innovation. These concerns were echoed in a report released last year by the former PM�s taskforce on reducing the regulatory burdens on business � also known as the Banks Report. The Banks Report noted that since 1990, the Australian Parliament passed more pages of legislation than were passed in the first 90 years since Federation. This helps to illustrate the growing volume � and complexity - of regulations. Submissions to the Banks review indicated that up to 25% of senior management time in large companies is taken up with regulatory compliance matters � and the % for smaller businesses is even greater.

7. Productivity agenda Best practice regulation process helps protect and implement the micro-economic reform process This link is sometimes lost with an officer focusing on �requirements� rather than on what the process is delivering The RIA process is a means to an important end rather than a road block The wider effects from poorly conceived or poorly designed regulation include slower economic growth, lower employment, and a decline in Australia�s international competitiveness. There are also the costs to the taxpayer of administering regulation. So the best practice regulation process helps protect and implement the micro-economic reform process and at the COAG level a national seamless economy. RIA should be seen as a means to and end rather than a road block. RIA should not require much more than what you should be doing if you have good policy development processes in place. The wider effects from poorly conceived or poorly designed regulation include slower economic growth, lower employment, and a decline in Australia�s international competitiveness. There are also the costs to the taxpayer of administering regulation. So the best practice regulation process helps protect and implement the micro-economic reform process and at the COAG level a national seamless economy. RIA should be seen as a means to and end rather than a road block. RIA should not require much more than what you should be doing if you have good policy development processes in place.

8. The need for best practice regulation Regulation is an essential part of running a well functioning economy, but it must be carefully designed to avoid: unintended and/or distortionary effects overlap and inconsistency excessive compliance costs A question of balance (costs & risks) . This is not about removing all regulation, regulation is an essential part of running a well functioning economy It is about government regulation needing to be well designed and well managed if it is to be effective and avoid many of the problems that have been experienced in recent times. It is a question of balance.This is not about removing all regulation, regulation is an essential part of running a well functioning economy It is about government regulation needing to be well designed and well managed if it is to be effective and avoid many of the problems that have been experienced in recent times. It is a question of balance.

9. Changing regulatory environment COAG Australian Government States and Territories International � Netherlands, UK, Europe These concerns are not just at the COAG level. The Australian Government has moved to address these concerns through agreeing to most of the recommendations in the Banks report, including by enhancing its RIA processes. States and Territories have introduced their own RIS requirements Internationally- other countries have introduced initiatives aimed at reducing regulatory burden.These concerns are not just at the COAG level. The Australian Government has moved to address these concerns through agreeing to most of the recommendations in the Banks report, including by enhancing its RIA processes. States and Territories have introduced their own RIS requirements Internationally- other countries have introduced initiatives aimed at reducing regulatory burden.

10. COAG initiatives on regulatory reform Principles and guidelines for national standard setting and regulatory actions by MCs & NSSBs (1995) COAG communiqu�s (2006 and 2007) PM wrote to State Premiers in August 2006 New COAG Best Practice Regulation Guide released (October 2007)