Business and Regulatory Costs
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Strategic Objective
Minimise business and regulatory compliance costs and promote a regulatory environment that maximises opportunities for business efficiency |
This objective relates to initiatives undertaken in relation to business and regulatory costs associated with:
- Directly-imposed costs of employment relations and other social legislation
- Cost-recovery of government services
- Impact of regulation on business profitability
- NZFSA, Biosecurity New Zealand and NZ Customs Service cost recovery
Issues
Industry profitability continues to be threatened by the costs imposed by, or of complying with, government regulation.
Recent years have seen an increase in costs as a direct consequence of the controversial Holidays Act 2003, for example, and there is no sign of this trend abating as Parliament continues to be presented with an array of social legislation, all of which carries with it the potential to compound costs to industry.
The government has initiated a series of work streams aimed at reducing ‘compliance costs’, with one component being the Regulatory Framework Review, which seeks to review existing legislation to identify and remove constraints to economic growth. What is apparent; however, is that the government’s focus is on reducing administrative burdens rather than addressing the costs of underlying policy. Reconsideration of policy decisions that themselves create substantial attendant costs, such as the introduction of ‘relevant daily pay’ in the Holidays Act, is off the government’s agenda.
An area in which industry costs continue to escalate as a result of new charges is that of border services. Customs border security initiatives have generated an entirely new user cost for a programme that has questionable value to that user. Biosecurity response funding is also under review and if there are to be any potential additional costs to industry, these costs must be limited to those contributing to initiatives that the industry would choose to purchase if given a choice.
Key Priorities for 2007/2008
Commission, in conjunction with other industry groups, a review of the existing Cost Recovery Guidelines, Regulatory Impact Statement and Business Compliance Cost Statement to promote greater and more meaningful scrutiny of proposed legislation with implications for New Zealand business.
Participate in a primary industry project to quantify the true value of the primary sector to the wider New Zealand economy as a tool for countering increases to costs.
Secure commitment from the Treasury for developing a model for more accurately quantifying the regulatory costs associated with existing and proposed legislation.
Identify key regulatory barriers to productivity improvement and advocate removal of those barriers, including through the Regulatory Framework Review.
Monitor the initiatives and impact of costs and charges surrounding the implementation of border security initiatives by the New Zealand Customs Service, shipping lines and port companies. Ensure procedures adequately protect national and industry interests, including the consideration of alternatives to mandated monopolies, and that there is a seamless transition between the various authorities involved.
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