Reducing regulatory pressure Vision 2009 and Annual Report 2008
Reducing regulatory pressure Vision 2009 and Annual Report 2008
Path-makers
The government is a silent companion that has our best interests at heart, that helps, sets a good example and shows the way. Sometimes there are obstacles along that way, in which case the government creates detours and throws up new barricades. In spite of its good intentions it creates a maze.
Actal helps the government to clear the way again and make it simple, with a minimum of bends and branches. A way that helps and leads citizens, businesses, institutions and professionals instead of obstructing them.
An illustration of the continuing process of smoothing paths and paving ways is the photographic theme of Actal’s Vision 2009 and Annual Report 2008. Contents
Foreword 5
Vision 2009 7
Annual report 2008 11 1 Introduction 13 2 Status of reduction in regulatory pressure 14 3 Advice on regulatory proposals 23 4 Advice on strategy 28 5 Progress at local level 35 6 Progress at international level 39
Annexes 1 Advisory opinions 42 2 Studies 43 3 Definitions 44 4 Actal 46 5 Endnotes 47 Foreword
The Hague, March 2009
At the time of completing our Vision 2009 and our Annual Report for 2008, the Netherlands, like the rest of the world, is in a deep financial crisis. What is important now is not to rush into more laws and regulations, which frequently only appear to provide security and are more difficult to repeal than to introduce. Especially in the current situation we must create more space for citizens, businesses, professionals and institutions to adapt to situations that have changed and to future challenges.
Citizens and businesses need an understanding government, one that does not fetter them with legislation and regulations but that supports them. The gap between citizen and government can be closed! Based on the course of a citizen’s life, government interference needs to be organized as efficiently as possible from the bottom up. A government that does not set unnecessary rules and that ensures that government agencies do not work in isolation should remain the common goal of all the parties concerned.
The Dutch Advisory Body on Administrative Burden (Actal) aims to make a major contribution towards achieving this goal. Actal’s mission is to bring about a culture transformation among lawmakers so that they lighten the regulatory load on businesses, citizens, institutions and professionals automatically and on a permanent basis. We cannot do this on our own. Many parties in public administration and in society can help. We invite all those with an interest in less regulatory pressure all to put their shoulders to the wheel with us to achieve our common mission.
Actal is continuing its activities with a new team. Francine Giskes and Tjark de Lange started in 2008. It was with great pleasure that I took up office as chairman on 1 January 2009. In this document setting out our vision, we discuss the activities you can expect from the new Actal. The publication also contains a report on developments in 2008.
Steven R.A. van Eijck Chairman of the Board
5
Vision 2009
Introduction The new Board is starting its work at a time when the fourth Balkenende Cabinet is halfway through its term. The Cabinet is striving to create a society in which the government sets clear boundaries on what is and what is not permitted, in which above all society’s own strength is utilized and in which creativity and personal initiative are supported.1 Actal is pleased to contribute towards achieving the Cabinet’s objective. This objective requires a reduction in regulatory pressure in our society. The current economic climate also demands the release of billions of public and private money through reducing the pressure of regulations. Furthermore, service provided with respect and efficiency can promote mutual confidence between all branches of government and businesses, citizens, professionals and institutions. It is Actal’s task to furnish the government, Parliament and local authorities with advice in this respect.
Since 2000 Actal has undergone an enormous development. Its sphere of operations has been widened to include the full palette of regulatory pressure reduction. In the coming months Actal’s method of operation will change further as the result of additional agreements with the ministries and Parliament on the objective of internalization. Finally, there is room for a sturdier commitment to issuing strategic advice. Actal will employ two perspectives for this: 1 the policy, implementation and supervision chain, 2 from tunnel vision to funnel vision.
Expansion of Actal’s sphere of operations Actal was set up in 2000 as an independent and temporary advisory board. Initially its sphere of operations was furnishing advisory opinions on the impacts of regulatory proposals on the administrative burden for businesses. The Cabinet has expanded this sphere of operations three times. The first expansion related to the impacts of existing regulations on the administrative burden for businesses. The second concerned the impacts of proposed and existing regulations on the administrative burden for citizens. On 10 June 2008 the decree establishing Actal was amended for the third time. Actal’s mandate has been extended to 1 June 2011 and its responsibilities expanded. Actal’s strategic advisory function has been reinforced and covers the entire area of regulatory pressure, including the administrative burden on professionals and institutions. Actal can also advise local authorities on regulatory pressure.
Actal’s advisory opinions on the impact of proposed laws and regulations on the administrative burden are issued prior to the regulations being discussed by the Council of Ministers or published in the Government Gazette. This is advice furnished ex ante. Actal can also issue an ex post advisory opinion on the consequences of existing regulations for the administrative burden on citizens and businesses.
7 vision 2009 | Reducing regulatory pressure
Besides its advisory opinions on the consequences for the administrative burden of proposed and existing regulations, Actal also focuses on strategic advice. Strategic advice primarily concerns the Cabinet’s approach. In the second place Actal advises the Cabinet or Parliament at their request. Finally, Actal issues strategic advice on specific themes of its own choice. For this type of advice Actal usually first puts a research question to an external bureau.
expansion of actal’s sphere of operations
Start (2000) Advice on the impacts of regulatory proposals on the administrative burden for businesses First expansion (2004) Advice on the impacts of existing regulations on the administrative burden for businesses Second expansion (2005) Advice on the impacts of proposed and existing regulations on the administrative burden for citizens Third expansion (2008) Strategic advice on all areas of regulatory pressure Advice to local authorities on all areas of regulatory pressure
Internalization mission Actal’s mission remains the realization of a culture transformation among lawmakers (‘internalization’), whose duty it is to reduce the pressure of regulations on businesses, citizens, institutions and professionals automatically and on a permanent basis. With its advisory opinions on regulatory proposals Actal endeavours to bring about careful consideration of the various interests, including the consequences for regulatory pressure, prior to political decision-making. Through its solicited and unsolicited strategic advice Actal aims to place on the agenda themes that bring the culture transformation closer and that result in reduced regulatory pressure.
Actal measures internalization on the basis of three aspects: knowledge, attitude and conduct. The Board has conducted two internet surveys among civil servants at ministries and implementing bodies. The reasoning behind these studies is that knowledge, attitude and conduct give an indication about ‘internalization’. The measuring instrument ‘administrative burden internalization’ further elaborates on these three aspects.2 In 2009 Actal is preparing a third internalization study. With its end date of 2011 in mind, Actal is planning to conduct this study in 2010. The study is intended to provide insight into whether and to what extent the ministries have succeeded in achieving the envisaged culture transformation. Actal also aims to develop a local internalization tool. Its aim in this is for municipal administrations employing the tool to swiftly become aware of their knowledge, attitude and conduct in regard to regulatory pressure.
Extra scoop for departmental internalization Although Actal supports the internalization process of ministries, they have to achieve the transformation themselves. The culture transformation effectively means that lawmakers are more aware of the fact that their laws and regulations result in administrative burdens and regulatory pressure. The ministries have undeniably made progress, as is revealed by Actal’s first and second internalization study. However, this progress is not sufficient to warrant dispensing with the ex ante review of proposed
8 Reducing regulatory pressure | vision 2009 legislation and regulations for their impact on the administrative burden for citizens and businesses.
Actal therefore wants to reach agreements with the ministries on the manner in which they intend to achieve internalization, as Actal is a temporary organization. The ministries must themselves at some point devote sufficient attention to reducing regulatory pressure. This structural anchoring requires a number of measures. On the basis of specific priority areas per ministry Actal will check which measures are necessary to bring about this structural anchoring. Actal will make agreements with the individual members of government on a step-by-step plan containing the measures a ministry needs to take and a time path. The objective of this plan is to achieve a structural anchoring of the automatic and permanent lightening of the administrative burden such that Actal’s task of furnishing ex ante advice can be terminated in early 2011. In short, we will be making a transition from a dossier review to a system review.
On 17 December 2008 Actal reached agreement with the Minister of Agriculture, Nature and Food Quality that from 1 January 2009 to 1 June 2011 his department would no longer refer regulatory proposals with impacts on the administrative burden to Actal for an advisory opinion. The ministry has guaranteed in departmental agreements that it will permanently reduce the administrative burden without the need of an external watchdog. This ministry is the first, because it focuses relatively well on reducing the regulatory pressure of planned legislation. It is a start, intended to draw the attention of ministries increasingly to their own responsibility for the administrative burden and to render an external review by Actal superfluous. Actal has agreed with the Ministry of Agriculture, Nature and Food Quality that it will conduct interim evaluations on 1 November 2009 and 1 November 2010. However, each organization will continue to involve the other in dossiers involving great regulatory pressure.
Training in reducing regulatory pressure Together with the Steering Group Regulatory Pressure and the Ministry of the Interior and Kingdom Relations Actal has initiated a training course. The course provides basic knowledge for all new policy advisors and legal officers in government departments. It further advances more substantive knowledge by having the participants consider, with the aid of a practical example, administrative burdens, compliance costs and potentially less burdensome alternatives. In 2008 the course was trialled twice: for civil servants from the Ministry of Education, Culture and Science and for employees of the Lower House’s Legislation Bureau.
Internalization by Parliament In March 2008 two members of the Lower House, Blanksma-Van den Heuvel and Smeets, tabled a motion concerning the review of amendments for impacts on the administrative burden.3 The Lower House subsequently agreed to a trial period up to the start of the 2009 summer recess.4
The fact that the Lower House is increasing its awareness of the consequences of regulatory proposals on the administrative burden and of regulatory pressure is a good development. A member of the House can request a department to calculate the impact of an amendment on regulatory pressure and then decide to submit the amendment to Actal for an advisory opinion. This method is not restricted to the party tabling the amendment only. Members other than this party can do so.5 Actal has as yet not received a single amendment for an advisory opinion. 9 vision 2009 | Reducing regulatory pressure
In Actal’s view it is important that members of the government also bring the consequences for the administrative burden and regulatory pressure into parliamentary debates, especially in the case of motions and amendments tabled by members of the Lower House, as motions and amendments could conflict with the Cabinet’s objective of reducing the regulatory pressure. In order to gain an insight into whether compensatory measures are required if the motion or amendment is adopted, ministers can then opt to calculate the consequences of the proposal and to submit it to Actal for an advisory opinion.6
Two perspectives Actal is working towards lawmakers not focusing only on laws and regulations but also paying attention to their practical impacts on citizens, businesses, local authorities, institutions and professionals. This is a major objective in strengthening our strategic advisory role. In the next few years Actal will be working from two perspectives in its advisory duty: 1 The policy, implementation and supervision chain This means that Actal aims to get lawmakers to consider the chain of ‘policy – implementation - supervision’ as a single entity. This is relevant not only to legislative and regulatory proposals, but also to the amendment of regulations when being debated in Parliament and the expanding of regulations in the implementation and supervision phases. 2 From tunnel vision to funnel vision With this line of approach Actal aims to get lawmakers to examine closely the entire body of laws and regulations with which a business, citizen, professional or institution is confronted. This makes them take into account the way in which the relevant laws and regulations are linked to those of other lawmakers and how this cluster of rules impacts on a business, citizen, professional or institution.
In this way Actal is linking up to the Cabinet’s objective of appreciably reducing regulatory pressure. It is Actal’s aim to use the knowledge and experience it has gained through furnishing advisory opinions on the many and various elements of reducing regulatory pressure to give an impulse to those parts that have lagged behind.
Perspectives From tunnel vision to funnel vision nc
Reduction of regulatory pressure widthwise
Chain Departmental Departmental Departmental regulations 1 regulations 2 regulations 3 Reduction of regulatory pressure Amendments, Amendments, Amendments, lengthwise policy rules policy rules policy rules and inspection rules and inspection rules and inspection rules
Regulations of local Regulations of local Regulations of local authorities authorities authorities n n c c
Cumulative regulatory pressure
Cluster of regulations n c
Target groups Businesses Citizens Professionals Institutions Local Authorities
10 Annual Report 2008 12 1 Introduction
changing of the guard
2008 was the final year with Actal for On 19 December 2008 we bade farewell Robin Linschoten and Hans Kamps. For to these pioneers with the seminar over 8 years they shaped and imparted ‘The dialectics of progress?’. During this substance to the Dutch Advisory Board animated get-together stakeholders on Administrative Burdens. They gave a from the world of politics, the business decisive impulse to the reduction of the community and representatives of administrative burden and regulatory organized pressure groups discussed pressure both inside and outside the whether the advances the Netherlands Netherlands. has made in reining in the Robin Linschoten is continuing this administrative burden are under work in a different body. He will remain pressure as a result of developments attached to the High Level Group of in other countries. All attendants were Independent Stakeholders on highly appreciative of the work done Administrative Burdens, which is chaired and results achieved by Robin by Mr Edmund Stoiber, in a personal Linschoten and Hans Kamps. capacity. Actal will be providing support to Robin Linschoten in this work for the High Level Group.
Actal’s activities are detailed in its programmes of work, which are normally published by 1 September. The 2008 Programme of Work was published on 1 April 2008 – and not on 1 September 2007. In late 2007 the full Cabinet position on the reduction of the administrative burden and regulatory pressure was not yet available. Neither had a final decision yet been taken on the Board’s mandate and composition. The 2009 Programme of Work was published in August 2008. The State Secretaries for Finance and for the Interior and Kingdom Relations, and the Minister for Foreign Trade approved these programmes of work, which they subsequently presented to the Upper and Lower House. Consequently, two programmes of work were drawn up in 2008.
This part sheds light on the work performed by Actal in 2008 and on the developments in Cabinet and local government policy for reducing the administrative burden and regulatory pressure.
13 2 Status of reduction in regulatory pressure
Introduction In 2008 the Cabinet displayed a wide variety of initiatives and activities aimed at reining in the administrative burden and regulatory pressure. In order to be able to see properly the interconnection between them all, the following overview shows all the components in the reduction of regulatory pressure combined with the way the Cabinet has fleshed out the three tenets of coordination, measurement and advice. Actal’s judgment on the various components is also stated.
The orange areas show the elements of Cabinet policy which in Actal’s view are in broad outline well regulated.
Actal sees the yellow areas as positive developments, but advises the Cabinet to strengthen its method of work.
The beige areas show the elements Actal feels pose a risk to the Cabinet achieving its objectives if additional steps are not taken.
14 Status of reduction in regulatory pressure | annual report 2008
Insight and Actal verdict on the policy components of the fourth Balkenende Cabinet for reducing regulatory pressure
Coordination Measurement Advice Baseline Net reduction target Burden ceiling Actal’s advisory task measurement in euro National
Administrative State Secretary of - New measurement - New tranche of New ceiling per Ex ante burden on Finance and Minister with reference date 25% net reduction depart ment based Ex post businesses for Foreign Trade 1 March 2007 - By end of 2008 on the measurement Strategic sufficient proposals with reference date - Amendment of gathered to enable 2007 definition admini- goal to be achieved strative burden - Technical correction in scale of admini- strative burden
Administrative State Secretary of No new - No new target, 2006 ceiling per Ex ante burden on citizens the Interior and measurement or 25% net reduction depart ment updated Ex post Kingdom Relations updating of the compared with (e.g. due to creation Strategic partial 2002 2002 of Ministry for Youth measurement which - By end of 2008 and Families) was made in euros sufficient proposals and in hours gathered to enable goal to be achieved
Other compliance State Secretary of Partial measurement Not yet None Strategic costs for businesses Finance and Minister not ready until for Foreign Trade early 2009
Interagency burden State Secretary of Partial measurement Minimum 25% None Strategic the Interior and not ready until early reduction for Kingdom Relations 2009 municipalities and provinces Own target 25% reduction set by Ministry of Education, Culture and Science for burden on its agencies
Burden on State Secretary of Quantitative study No percentage None Strategic professionals the Interior and of time spent and target, top 5 of a Kingdom Relations perception of the number of profiles profiles will be tackled (not yet completed)
Local
Administrative Agreement between New partial Minimum reduction Requires a local Strategic burden on Minister and State measurement with of 25% decision businesses Secretary of the 1 March 2007 as Interior and Kingdom reference date Relations, the Minister of Finance and the chair of the Association of Administrative Netherlands burden on citizens Municipalities (VNG)
Regulatory pressure None None Requires a local Strategic decision annual report 2008 | Status of reduction in regulatory pressure
This section relates to the developments in the Cabinet’s national policy and the initiatives set in motion by the Cabinet for municipal and provincial administrations. The progress achieved by local authorities in reducing the regulatory pressure is discussed in section 5.
Cabinet progress reports At the parliamentary committee meeting with members of government held on 17 December 2008 the spokespersons on the reduction of regulatory pressure for businesses looked back on the year with satisfaction. 2008 was a year in which they spoke several times to the State Secretary for Finance and the Minister for Foreign Trade about the results of their policy and they tabled a large number of motions. There was also satisfaction at the meeting regarding service improvement and the reduction of regulatory pressure held with the State Secretary of the Interior and Kingdom Relations on 5 February 2009.
motions adopted in 2008 on the cabinet’s regulatory pressure policy
1 Motion tabled by Blanksma-Van 4 Motion tabled by Smeets and den Heuvel and Smeets requesting Blanksma-Van den Heuvel for the proposal for accelerated procedure amendment of the Alcohol Licensing for Actal concerning review of and Catering Act to be brought amendment of administrative before the Lower House by autumn burdens (29 515, nr. 228) 2008 at the latest (29 515, nr. 250) 2 Motion tabled by Blanksma-Van 5 Motion tabled by Blanksma-Van den den Heuvel requesting switch to Heuvel and Smeets for action to be quarterly reporting on the achieved taken as soon as possible on the reduction in the administrative opinions on the delivery windows of burden (29 515, nr. 229) the Urban Distribution committee, 3 Motion tabled by Smeets and the Noordzij committee and the Blanksma-Van den Heuvel for linking experiences of SenterNovem in order a target to the Perception Monitor, to encourage economic efficiency and and after the macro measurement social business management for the to report on this to the House in retail trade (29 515, nr. 255) a six-monthly regulatory pressure progress report (29 515, nr. 249)
Actal does not totally share the satisfaction of Parliament with the two separate progress reports from the State Secretary for the Interior and Kingdom Relations on the one hand and the State Secretary for Finance and the Minister for Foreign Trade on the other.7 The Cabinet’s reports on the results of and plans for reducing regulatory pressure were cause for Actal to issue a strategic advisory opinion. In its opinion on the progress reports on the reduction of regulatory pressure of 8 December 2008 Actal expresses its appreciation for the fact that the Cabinet has broadened its focus to include restricting other compliance costs for businesses, the interagency burden, the burden on professionals and local regulatory pressure.
16 Status of reduction in regulatory pressure | annual report 2008
In 2008 the Cabinet gathered sufficient proposals to be able to realize the target of a 25% reduction in the administrative burden on citizens and businesses in 2011.
The way in which the Cabinet is implementing this broadening of focus and the difference in speed, progress and soundness of the various programmes give cause for concern. Not all the building blocks that made the reduction of the administrative burden on businesses a success are present in the broad area of regulatory pressure. Furthermore, the coherence among the various initiatives the Cabinet has undertaken to reduce regulatory pressure is not clear. Actal is of the opinion that the Ministerial Steering Committee on Regulatory Pressure should coordinate Cabinet policy better. Actal perceives the three tenets of coordination, measurement and advice as exposed below. The current section also focuses on the Renewal of Supervision Programme and the various committees set up by the Cabinet.
Coordination Coordination and structure in the case of a further 25% reduction in the administrative burden on businesses is firmly anchored with the State Secretary for Finance and the Minister for Foreign Trade.8 The responsibility for reducing the administrative burden on citizens, of the interagency burden and the administrative burden on professionals lies with the State Secretary for the Interior and Kingdom Relations. Within the Cabinet there are no imperative rules in these areas in the form of a baseline measurement, net reduction target or burden ceiling. This is a risk. It is not clear what instruments are available to the coordinating minister or state secretary to realize sufficient progress in this area.
The lack of coordination and direction from central government is noticed above all by the local authorities. The State Secretaries of the Interior and Kingdom Relations and of Finance, and the Minister for Foreign Trade all have various programmes and projects for reducing the regulatory pressure at local level. It is confusing for municipal authorities to be approached with various central government products which show no coherence.9 Actal recommends merging the various central-government initiatives targeting municipalities and presenting these administrations with a single product per subject.
Measurement The administrative burden on businesses has again been measured. The Cabinet states that on the reference date of 1 March 2007 the administrative burden on businesses amounted to 8.8 billion euros. The administrative burden on businesses ensuing from subsidy schemes is 223 million euros. The method used to make the new baseline measurement constitutes progress, because the study was outsourced on a government-wide basis and the data are stored at a central point. During the study, however, Actal felt itself compelled to issue a warning about unwelcome effects of the new approach. In its opinion on the method and baseline measurement of administrative burdens of 27 March 2008 Actal draws attention to the effects of: 1 narrowing the definition of administrative burdens, 2 the representativity of the new baseline measurement, 3 the effects of the long-term lack of administrative burden ceilings in the departments.
17 annual report 2008 | Status of reduction in regulatory pressure
For the new measurement the Cabinet opted for a number of new starting points and implemented a number of technical corrections. For example, the Cabinet no longer denotes the costs of the obligation to furnish information to third parties as an administrative burden, but considers these costs to be other compliance costs. This means that tackling this category of costs falls under a less solid regime. There is also a risk of the definition not tying up with the one used at the European level. In order for a noticeable reduction in regulatory pressure to be achieved Actal advised the Cabinet on 8 December 2008 to report to the Lower House on the scale and composition of the obligation to furnish information to third parties, and on the developments in this area. Actal also recommended reducing these obligations by in any event 25% net.
Another potential factor that might put the validity of the 1 March 2007 measurement at risk is that on a large number of points a full measurement was not carried out; the figures were only updated. The quality and reliability of the data can further be jeopardized because the number of observations is below the 5 recommended by Actal. Some departments have had an additional study conducted on their own initiative.
In its Progress Report Regulatory Burdens on Businesses of November 2008 the Cabinet published the new ceiling for the administrative burden for each department. The Ministry of Finance is the largest source of administrative burdens for businesses. With approximately 4 billion euros, it accounts for almost half of the administrative burden on this sector.
actal symposium ‘good intentions for sme’
During its symposium on 17 January Tax Administration, thus reducing the 2008, Actal presented the Minister for administrative burden on these Foreign Trade with its report ‘Small businesses. business, big burden’. In the study, the In its opinion on the progress reports 2007 administrative burden on two on the reduction of regulatory pressure small businesses at each stage of their of 8 December 2008 Actal expressed its life was compared with the burden disappointment about the level of in 1998. The businesses taken as an ambition the Cabinet has shown in example were a sandwich bar and a introducing the single payroll tax bill. painting business. The starter facilities The Progress Report Regulatory Burdens and other compliance costs were also on Businesses states that the Cabinet examined. intends to take a number of concrete During the symposium the Minister steps towards a single payroll tax bill, for Foreign Trade promised to introduce but the Cabinet merely promises to a single payroll tax bill for employers present the decisions taken on the next with fewer than ten employees. This steps in the spring of 2009. means an employer will only have to It does not seem likely that the single deduct one single amount per company payroll tax bill will be introduced during or per employee and transfer it to the the term of this Cabinet.
18 Status of reduction in regulatory pressure | annual report 2008
The reduction in the other compliance costs, for which the State Secretary for Finance and the Minister for Foreign Trade are responsible, is having difficulty getting off the ground. In order to speed things up, Actal had a study of the other costs of complying with existing legislation conducted in 2008. This initiative was a sequel to the 2006 and 2007 measurements with which the method devised by Actal was first tested.10 On 30 May 2008 Actal issued its opinion on the draft manual for baseline measurements and other compliance costs for businesses. In this opinion it states that the lack of a baseline measurement, net reduction target and burden ceiling in this field is a risk, as a baseline measurement allows decisions to be taken on the ceiling for the other compliance costs because with new laws and regulations the increases and decreases can be consistently mapped out ex ante. It also provided the opportunity to draw up a reduction programme for the other costs of compliance in existing legislation and regulations. The Cabinet limits the measurement to 30 areas indicated by the business community as areas in which the other compliance costs are disproportionately high. The results of a measurement in 7 areas are expected in the spring of 2009. It will be a feat of strength for the Cabinet to present in its 2009 spring report the results of a good quality measurement and a solid package of measures with which the other compliance costs for businesses can be discernibly reduced.
The Cabinet did not measure the administrative burden on citizens again, nor did it fix a new reduction target.11 The Cabinet did however hold fast to the importance of the administrative burden ceiling in this respect. The State Secretary for the Interior and Kingdom Relations told the Lower House that in 2011 the administrative burden will have been pushed back by about 29% in terms of time and 25% in costs compared with the 2002 measurement.
incomplete reporting of increases and decreases
It is impossible to deduce from the the increases in the administrative progress reports what the present burden. The reduction target of 25% administrative burden is and what is a net target. In Actal’s view the progress has been made in its reduction. Cabinet should provide insight into The Cabinet mainly presents proposals all the increases and decreases in that will cause the administrative administrative burdens, at the same burden to decline. But it is also time stating how far the ministries important to gain an insight into are from their reduction target.
Full measurements are lacking for both the interagency burden and the administrative burden on professionals. On 27 January 2009 the State Secretary for the Interior and Kingdom Relations presented a letter to the Lower House on the reduction in regulatory pressure and a publication on the administrative burden on professionals. The booklet contains a description of the administrative burden on a beat officer, a fire chief, a public prosecutor, a detective, a junior school head teacher, a teacher of electrics at a preparatory secondary vocational school, a junior school teacher, a social work teacher at a secondary vocational school, a care worker, a general physician, a hospital nurse, an income consultant, and a service team employee at the SVB (the independent administrative body that implements social security schemes for various government agencies in the Netherlands). It also contains a short list of improvement initiatives. The measurements of these administrative burdens and their perception are not yet available.
19 annual report 2008 | Status of reduction in regulatory pressure
On 4 February 2009 Actal sent its position on the letter of 27 January 2009 to the standing committee for the Interior and Kingdom Relations. Actal deems the coordination in reducing the administrative burden on professionals insufficient. Within the Cabinet there are no imperative rules for reducing the administrative burden on professionals. The Cabinet has no full baseline measurement, no net reduction targets and no burden ceiling. It is not clear what instruments the State Secretary for the Interior and Kingdom Relations will use to ensure reduction of the regulatory pressure on professionals is a success.
Actal looks forward with interest to the initiatives of other members of the government. For example, the Ministry of Education, Culture and Science (OCW) has its own reduction target of 25% for reducing the administrative burden on OCW agencies. The department refers proposals that have an impact on this administrative burden to Actal for an advisory opinion. Actal also particularly appreciates the fact that the Minister for Youth and Families has referred a number of dossiers that have an impact on professionals. These initiatives deserve to be followed.
The State Secretary for the Interior and Kingdom Relations further informed the Lower House on 27 January 2009 that measurement of the interagency burden was in its final phase. She announced that these data would be presented to the Lower House in March 2009 together with the action plan for reducing the interagency burden. This action plan is published at a time when the Cabinet is halfway through its term.
response to actal opinions
At the request of the standing Actal considers it important that the committee for the Interior and Kingdom Cabinet consistently responds to its Relations, State Secretary Bijleveld, on advisory opinions. This not only keeps behalf of the State Secretary for Finance Actal on its toes, but is also of benefit and the Minister for Foreign Trade as to the goal of internalization and the well, responded to Actal’s December reduction targets. 2008 opinion on 27 January 2009.
Renewal of Supervision Programme The Cabinet aims to achieve a 25% reduction in the supervisory burdens of state inspectorates. This part of the action plan will be coordinated by the Inspectorates Council in the context of the Renewal of Supervision Programme. This is not an integral approach targeting all supervisory burdens, but involves tackling the supervisory burdens in a number of areas. This targeted approach chimes with the vision propagated by Actal that the government should put itself in the shoes of the groups its policy targets. This is especially important for supervision, because this frequently involves direct contact between the government and citizens/businesses. Unfortunately, the target of reducing supervisory burdens by 25% relates only to businesses.
The Inspectorates Council is focusing mainly on increasing collaboration between inspectorates and placing more emphasis on risk-based supervision. This can be achieved in part within the present frameworks of the state inspectorates. In addition, much can be gained by getting municipal, provincial and water authorities to work together. It is also important to think about the organization of supervision in policy and regulations.
20 21 annual report 2008 | Status of reduction in regulatory pressure
In order to get departments to map out the burdens of supervision, Actal introduced the element of supervision into the fourth review criterion in mid-July 2008: ‘Have an implementation and supervision offering a minimum administrative burden been selected?’. In this way Actal aims to encourage consideration of the manner of enforcement and supervision in policymaking and transparency of the administrative burdens of supervision in the explanatory memorandums to legislation. Departments are expected to explicitly map out in legislative and regulatory proposals the impacts of the enforcement of laws and regulations on the administrative burdens of citizens and businesses, to look for less burdensome alternatives and to opt for the least burdensome one. It is still too early to draw conclusions about the results of the amended fourth criterion.
Committees In support of the reduction of regulatory pressure on businesses the Cabinet has created a number of committees. It set up the ‘Dekker Committee’ and the ‘Noordzij Committee’ to carry out a fundamental exploration of impediments in the construction and the transport sectors respectively. These committees issued reports in 2008. Both reports provide useful information on regulations in the sectors studied and the way these are dealt with in practice. With the recommendations of the Dekker Committee in hand the Cabinet intends to conduct further studies and start up pilot programmes. The Cabinet’s response to the recommendations of the Noordzij Committee and the action plan for the first 15 problem areas will be sent to the Lower House by early March 2009 at the latest. The Steering Group Regulatory Pressure and the Ministry of Transport, Public Works and Water Management requested Actal in early 2009 to issue an opinion on this Cabinet response.
The Cabinet has also set up a Regulatory Pressure Committee for Businesses. This committee, chaired by Mr B.E.M. Wientjes, has been given three tasks by the Cabinet: to assess, to initiate and to act as an ambassador. The committee can, for example, speak out about the political goal of regulations.
Conclusion on the status of the reduction of regulatory pressure Actal concludes that the Cabinet is on the right track in reducing regulatory pressure. In 2008 it gathered sufficient proposals to enable the objective of 25% fewer administrative burdens on citizens and businesses to be achieved in 2011. Progress on reducing other compliance costs for businesses, the interagency burden and the burden on professionals is less successful. It is essential that in 2009 the Cabinet should give a strong impulse to these elements in the reduction of regulatory pressure.
22 3 Advice on regulatory proposals
Introduction When regulations are developed Actal makes every effort to ensure they are designed to produce a minimum administrative burden on citizens and businesses. When it issues an opinion on a dossier, it employs the following review framework: 1 Has the expected administrative burden been quantified and has the calculation been sufficiently substantiated? 2 Has sufficient consideration been given to alternatives that may produce a lesser administrative burden on businesses and on citizens? 3 Within the object of the legislation has the least burdensome alternative been selected? 4 Have an implementation and supervision offering a minimum administrative burden been selected?12 In this section we explain the trends in the furnishing of advice on regulatory proposals.
Experience with advisory opinions in 2008 The number of dossiers Actal processed in 2008 was roughly equal to the number it dealt with in 2007 and there were no appreciable changes in the distribution of the target groups in the dossiers on which Actal issued an opinion.
Overview of dossiers 2008
Dossiers with formal advice 47 Dossiers without formal advice 151 Total number of dossiers processed 198
Overview of target groups of dossiers with advice 2008
Administrative burden on businesses and citizens 14 Administrative burden on businesses 20 Administrative burden on citizens 6 Administrative burden on institutions 4 Administrative burden on businesses, citizens and institutions 2 Administrative burden on businesses and institutions 1
23 annual report 2008 | Advice on regulatory proposals
Actal did however find changes in the conclusions of the opinions. In the period 2003 to 2006 Actal saw a continuing improvement in the consideration of the administrative burden. In 2007 the number of negative opinions delivered increased. Actal mentioned this worrying trend breach in its 2007 Annual Report. The breach was repaired in 2008, in which year Actal did not deliver a single opinion that was categorically negative.
Overview of opinions 2008
Yes 23 Yes, but only after 15 No, unless 8 No 0 Other 1 Total number of opinions 47
Figure: trend in opinions 2003-2008 13
100%
80%
60%
40%
20% Do not introduce Do not introduce unless Introduce, but only after
0% Introduce 2003 2004 2005 2006 2007 2008
24 Advice on regulatory proposals | annual report 2008
In 2008 Actal delivered the largest number of opinions to the Ministry of Economic Affairs, the Ministry of Social Affairs and Employment and the Ministry of Transport, Public Works and Water Management. Actal issued nine opinions to the Minister and State Secretary of the Ministry of Social Affairs and Employment, for example. Six opinions were positive. At the request of the Lower House the Minister of Social Affairs and Employment asked Actal for an opinion on the transparent payroll tax return as proposed in the bill ‘Other tax measures’. There were still a number of points in the bill that were not clear, so Actal recommended clarifying these first before introducing the bill. The Lower House also made a number of critical comments on the bill, whereupon the Cabinet modified it. As a result the transparent payroll tax return bill has to be enacted by a separate Royal Decree. With the Royal Decree the Cabinet is employing a legislative procedure by which the draft decree must be put before parliament for a period of 4 weeks, during which parliament may debate or oppose it. In addition Actal will be asked for an opinion. The Cabinet has taken the critical comments to heart. A pilot study will be launched to test whether the transparent payroll tax return bill will work properly and whether the envisaged reduction in the administrative burden will indeed be realized.
In 2008 Actal also sent nine opinions to the Minister and State Secretary of Transport, Public Works and Water Management. Seven of these were positive. A number of these dossiers have a positive impact on the reduction of the administrative burden on citizens and businesses. These dossiers related inter alia to relaxation of the inspection obligation when renewing a disabled person’s parking badge, introduction of the possibility to suspend a vehicle registration certificate electronically and the so-called decoupling of the registration certificate and the number plate.
A number of dossiers on which an opinion was delivered to the Ministry of Transport, Public Works and Water Management result in a sharp increase in the one-off administrative burdens on citizens and/or businesses. These legislative and regulatory proposals include the introduction of the onboard computer for taxis and road pricing. Another dossier that stands out is the ‘Policy proposals on mileage fraud’. On 22 September 2008 the Ministry of Transport, Public Works and Water Management requested on opinion on these policy proposals, which aim to combat fraud through the rolling back of the odometer.
The Ministry of Housing, Spatial Planning and the Environment and the Project Ministry Housing, Communities and Integration are examples of departments that in 2008 referred few legislative and regulatory proposals to Actal. As a result of the entry into force of new regulations, such as the Activities Decree, the new Spatial Planning Act and the Building Use Decree plus the new method of recording reductions in the administrative burden, the department has already almost achieved its target of a 25% reduction. No big, new reduction proposals were made in 2008. At present the Ministry of Housing, Spatial Planning and the Environment has launched a new programme focusing on reducing burdens in the broad area of regulatory pressure. Basic studies of inspections, registration and reporting obligations, for example, may in the next few years result in new reduction proposals both for administrative burdens and for substantive compliance obligations.
25 annual report 2008 | Advice on regulatory proposals
Since 2006 Actal has also reviewed the proposed supervisory rules of De Nederlandsche Bank (DNB – the central bank of the Netherlands) and the Netherlands Authority for the Financial Markets (AFM). Officially, the dossiers of these two supervisory authorities are presented to Actal by the Ministry of Finance. So in first instance Actal advises the Minister of Finance on the supervisory rules of both DNB and AFM. Last year Actal reviewed only one dossier from the AFM, the ‘Further regulations on short selling’. The Ministry of Finance lays down rules on supervision and its implementation in departmental legislation as far as possible. Supervisory authorities consequently have far less need to draw up rules themselves. Consequently, the number of dossiers referred by AFM and DNB has remained very limited. This approach also ensures that AFM and DNB are involved in the legislative process right from the start. The Ministry of Finance thus secures that the administrative burden of supervision and implementation is dealt with at a very early stage of the legislative process. Actal sees many advantages to this approach because in order to achieve minimum supervisory burdens it is necessary when developing new policy and new regulations to consider what this means in terms of supervision, implementation and enforcement.
communication
Actal’s activities require continuous - abolishing the Administrative consultation with interested parties Organisation/Internal Control scheme within central and local government, of the Dutch Healthcare Authority Parliament, employer organizations and (NZa); other target groups. - road pricing Act; In 2008 Actal organized three expert - retain or discard duty for small and panels on the following subjects: medium-sized enterprises. The number of citizen and business visits was kept to three in 2008.
26
4 Advice on strategy
Introduction This section looks at the strategic opinions delivered or prepared by Actal in 2008. These include the requests for strategic opinions and strategic theme-based opinions.
Requests for strategic opinions In 2008 Actal received two requests for strategic opinions. On 19 February 2008 the Minister of Justice requested an advisory opinion on the integral assessment framework for policy and legislation. On 13 October 2008 the State Secretary for Finance and the Minister for Foreign Trade requested an advisory opinion on the sources of regulatory pressure.
Integral assessment framework for policy and legislation Over the years a jumble of instruments and tools for improving the quality of legislation have come into being. This situation is ineffective and confusing. The Minister of Justice has therefore taken the initiative to develop an integral assessment framework that provides insight into the various impacts of regulations. In this way he is endeavouring to meet the desire to create more coherence among the existing instruments and procedures in order to increase their effect and reduce the associated bureaucracy. In the policy document ‘Confidence in Legislation’ of 6 October 2008 he looks at the introduction of an integral assessment framework for policy and legislation.14 ‘Through broad application of the tool, questions concerning the applicability of alternatives, effectiveness, feasibility and the cost of compliance and enforcement will play a central role in the process of decision-making on new policy and legislation. Focusing on the impacts (benefits and burdens of regulations) will thus become part of the normal policymaking process and so remove the need for external advisory bodies, such as the Advisory Body on Administrative Burdens (Actal), to oversee this. The aim is for Actal to be disbanded at the end of term of this Cabinet.’
In anticipation of the publication of the policy document ‘Confidence in Legislation’ the Justice Minister submitted a request to Actal for an advisory opinion in February 2008. In it he refers to the express role the Cabinet assigned to Actal in the development and introduction of the assessment framework. The Cabinet wishes to see this role fleshed out through the direct involvement of Actal in the further detailing of the tool (through participation in the interdepartmental working group) and through periodic requests for an opinion on interim products.
On 12 June 2008 Actal published its opinion on the design of the integral assessment framework for policy and legislation. Since the development of the framework did not so much involve the development of a new review, as the integration and coordination of existing reviews, Actal conducted the Practical study of regulatory pressure reviews as a preparation to the opinion. The existing regulatory pressure reviews were studied on the
28 Advice on strategy | annual report 2008 basis of six legislative proposals. This contributed to Actal’s advice to design the integral assessment framework as a system of so-called Regulatory Impact Assessments. These plot all the substantial impacts and calculate relevant alternatives, including the so-called zero alternative, in which no steps are taken.
Actal further considers it important to sharpen the focus of the integral assessment framework. To achieve this a distinction must be drawn between two categories of review. The first concerns compliance with higher law and technical legal requirements from the Aanwijzingen voor de Regelgeving (Dutch guidelines for the drafting of regulations). The second category concerns substantive considerations relating to policy. This could take the form of a cost/benefit analysis, for example, which would include the administrative burden, other impacts on businesses, environmental impacts. First-category reviews must always be carried out. Reviews from the second category derive their usefulness from the political importance attached to them. So with the second category the focus can, in Actal’s view, be sharpened by incorporating in the integral assessment framework subjects and legislative programmes that have been given priority in the coalition agreement. The analysis made using the framework will then reveal the key objectives the Cabinet aims to realize with its Coalition Agreement.
Finally, Actal advised the Minister of Justice to take into account the success factors from the approach to tackling the administrative burden and the parameters derived from evaluations of foreign impact systems.
Actal is concerned about the lack of ambition and progress in the realization of the framework. In 2009 the Ministry of Justice will conduct a pilot study based on a draft version of the integral assessment framework. We do not yet know whether the Minister of Justice has incorporated Actal’s advice in it, and Actal has not received any request for a follow-up opinion.
Opinion on integral assessment framework for policy and legislation Follow-up
Design the integral assessment framework as a system of None Regulatory Impact Assessments Sharpen the focus of the integral assessment framework by None choosing which impacts need to be assessed Make a thorough analysis of the design and operation of the None existing reviews and, where necessary, improve these Include in the integral assessment framework the zero option None as first alternative to be analyzed Build up the infrastructure for the administrative burden for None the integral assessment framework as well
Sources of regulatory pressure On 13 October 2008 the Cabinet sought Actal’s advice on the sources of regulatory pressure. The Cabinet wants insight into the various sources of this pressure, including self-regulation by the business community. The Cabinet requested Actal, in the context of the design and implementation of a method for discernibly tackling the regulatory pressure on businesses, to look at a response to the regulatory pressure the business community imposes on itself as an alternative to state regulation. Of importance in this is to identify the various sources of regulatory pressure that fall outside the present
29 annual report 2008 | Advice on strategy
regulatory pressure programmes before considering how they can be reduced. Actal is currently conferring with the Cabinet for the purpose of operationalizing this request.
Theme-based strategic advice Actal also delivers strategic opinions on a given theme. If necessary, prior to issuing this type of opinion, it first formulates a research question, which it then refers to an external agency. The following gives an overview of the developments in 2008.
Subsidies In 2008 Actal delivered two opinions on subsidy frameworks which can considerably lighten the administrative burden of subsidy schemes. In April 2008 the Actal opinion on the Framework Decision on Subsidies from the Ministry of Economic Affairs was decidedly positive. In October 2008 Actal advised on an interim report relating to the content of the government-wide framework for the financial control of subsidies. Here too, Actal was positive about the impacts on the administrative burden, but it drew attention to a number of necessary preconditions. For example, the transition from a generic duty of accountability to a system of random checks needs to be accompanied by high and consistently imposed sanctions. It also requires government organizations to exchange information on companies committing fraud to allow targeted checks. Actal is also in favour of anchoring the government-wide subsidy framework in a law, and advocates implementing the lex silencio when applications are made for state subsidies.
Fixed effective dates of change Actal noted with interest the letter of 3 November 2008 on fixed effective dates of change15, which the Cabinet is introducing as a result of complaints from businesses and institutions about the frequent amendment of regulations or the introduction of new regulations in the course of a year. Businesses and institutions also complain about the often limited preparation time. With the fixed effective dates of change plus the minimum implementation period the Cabinet is launching a promising method for reducing regulatory pressure. On 20 November 2008 Actal delivered an opinion on the fixed effective dates of change in order to increase and accelerate the impact of the method. Actal deems it important that the Cabinet should provide insight into the actual significance of the method. How often was there a departure from the fixed effective date of change and the minimum implementation period and on what grounds did this happen? What is in quantitative terms the significance of a fixed effective date of change and minimum implementation period for the reduction in regulatory pressure? Actal further recommended broadening the scope of the introduction of fixed effective dates of change by applying the method to all regulations (including ministerial decrees), to all target groups and to policy rules. Finally, Actal advised the members of the Lower House to apply fixed effective dates of change and a minimum implementation period when tabling legislative initiatives and amendments.
Lex silencio On 3 December 2008 the Minister for Foreign Trade sent a letter, on behalf of the Minister of Justice as well, to the Lower House about the lex silencio, a system of administrative decision-making by default.16 In the letter, the Cabinet proposes applying the lex silencio to 24 permit systems. At the request of Parliament Actal on 16 February 2009 recommended a broader application of the lex silencio simply by employing the criterion of ‘good chance’ to large irreversible losses.
30 annual report 2008 | Advice on strategy
Duty to retain information In 2008 Actal conducted a study of the impacts of the various obligations to retain or discard information on small and medium-sized enterprises (SME) in particular. Actal commissioned e-Law@Leiden to draw up a detailed report listing all relevant retain or discard obligations for SME. This inventory revealed that there are very many and varied obligations and that the reason for the obligation is by no means always clear. It is also frequently not clear what the grounds for the retain period are. Pursuant to this study by Leiden University, Actal commissioned EIM to examine the quantitative impacts for an individual business. This study, which was based on a painting business and a sandwich bar, revealed that complying with all the retain obligations involved considerable costs. Actal will further act upon the results of these studies in 2009.
ICT The Cabinet has for years had big ambitions for reducing the administrative burden through the clever use of ICT. Actal supports the idea that ICT applications can assist in improving state service and reducing administrative burdens. Although the impacts of ICT projects on the administrative burden on businesses and citizens had been reported as reductions in the past, they had not, or only partially, been quantitatively substantiated. In practice, the results of big ICT reduction proposals, such as the standardized exchange of aggregated corporate data using XBRL, were often disappointing and the expected reduction in the burden was not achieved at all or only much later than planned. This noncommittal way of handling things does not lie well with the quantitative, but above all the discernible objective the Cabinet is aiming for. In the past it has been too easily assumed that through the use of ICT the regulatory pressure would automatically drop. For this reason Actal welcomes the development of the ICT assessment framework which offers a guideline for mapping out the quantitative impacts of ICT projects on the administrative burden. In its opinion on the progress reports on the reduction of regulatory pressure of 8 December 2008 Actal advised the Cabinet to map out the impacts on the administrative burden on citizens and businesses of the ICT reductions listed in these progress reports using the ICT assessment framework and to submit these reduction plans to Actal for an opinion. In its response the Cabinet ignored this recommendation. Actal would further like to see stronger management, such as the Cabinet is aiming for with the National Implementation Programme for service and e-government (NUP), resulting in greater focus and coordination in the development of ICT applications that lighten the administrative load.
Actal conducted a case study in which it examined whether the method used to reduce administrative burdens with planned laws and regulations could be applied one-to-one to reduction proposals in the form of ICT projects. To this end Actal selected the Amsterdam municipal administration’s Horeca1 project, in which a single application is made for various hotel and catering licences within the city of Amsterdam. It emerges from the case study that the impacts of ICT projects on administrative burdens can be easily mapped out ex ante and ex post. Actal shared the results of this study with the official working party that prepared the ICT assessment framework. In Actal’s view the application of the tested measuring methodology and the ICT assessment framework ultimately result in government becoming more transparent about the impacts of their planned ICT projects. This means that government ICT projects themselves can also be held to account for the realization of a discernible lightening of the administrative load for citizens and businesses.
32 Advice on strategy | annual report 2008
Service provision by public-sector implementing bodies The aim of the exploratory study of the service provided by public-sector implementing bodies was to check whether and how improving this service would result in a reduction in regulatory pressure on businesses, citizens and professionals. The study commenced in July 2008 and was completed in the spring of 2009. The service improvements studied can ultimately be broken down into four categories, which all display a strong interrelationship: focus on the client, smarter supervision, the way information is gathered and the way information is furnished. The study revealed that improving service has a positive impact on reducing regulatory pressure. The degree to which regulatory pressure can be reduced depends on four factors: legislation and performance contracts, collaboration with the core department, collaboration with the target group(s) and the possibilities the internal organization has for improving these. In 2009 Actal will continue its work on the implementation of legislation and regulations and will continue to demand attention for the administrative burden and regulatory pressure that can arise in this sector.
netherlands healthcare authority (nza)
Since 2006 Actal has been in contact 3 expansion of the risk-bearing part of with the NZa concerning the reduction hospital production (the B segment); of regulatory pressure in the healthcare 4 annual accounts, including the report sector. With its project for removing of the board, as accountability administrative burdens, WALZ, the NZa document with a tolerance norm of aims to reduce the bureaucracy of 1% of the mass invoiced; supervising the market parties. It has 5 provision of clarification on the issue emerged that the Administrative when checks on legitimacy are Organization/Internal Control (AO/IC) justified (for example, employing scheme is the cause of a major share of the existing fraud scheme). the administrative burden. On 17 June In addition, Actal pointed out that the 2008 the NZa sought Actal’s opinion healthcare sector may not even notice on the impacts on the administrative the proposed reduction of 32 million burden, the preconditions and the term euros through abolition of the schemes. if the scheme were to be abolished. Keeping records and auditing them is, In order to arrive at an opinion after all, a part of standard management backed by the stakeholders Actal held practice and will not disappear if the several rounds of discussions with statutory obligation is removed. If the the various umbrella organizations schemes are abolished it is therefore involved. It also organized an expert essential that the reduction in meeting. Its opinion of 17 July 2008 regulatory pressure should be made contains the following preconditions. really noticeable. In the meantime 1 stable and transparent product the Minister for Health, Welfare and structure; Sport has stated in his reduction 2 certification of the validation programme that he sees the abolition module for diagnosis treatment of the AO/IC schemes as one of the combinations or DTCs (via the so- biggest reductions. The Netherlands called ‘grouper’, removing the need Healthcare Authority will take Actal’s for an ex post review of whether recommendations into account when the correct treatment is linked to a abolishing the scheme. given diagnosis);
33
5 Progress at local level
2008 was an important year for the reduction in regulatory pressure at the local level. The baseline measurement of local administrative burdens on citizens and businesses was completed. 40 products that create administrative burdens for citizens and 45 for businesses were measured. Opting for a limited measurement meant that the research data had to be extrapolated. The end result of the study was that the total administrative burden on citizens from local regulations, following extrapolation, amounted to around 10.6 million hours and 23 million euros. Businesses have around 101 million euros in administrative burdens (after extrapolation). The report also contains a decision tree as a framework for the systematic reduction of administrative burdens.
In 2007 and 2008 the Wallage Task Force assisted municipal administrations in order to accelerate the reduction in the administrative burdens on citizens and businesses. In late 2008 this Task Force launched an autumn offensive because it saw many more opportunities for improvement. At the end of the year the Task Force was wound up.
The Cabinet has provided municipal administrations willing to lighten the local regulatory pressure with vouchers. With these vouchers they were able to request external assistance in mapping out and tackling the municipal regulatory pressure. A sum of 4.5 million euros in vouchers was available for use in making plans to reduce the administrative burden on businesses. In addition, 2 million euros was made available for vouchers for citizens. SenterNovem implemented the scheme. It published the final reports on these studies among municipal administrations on its website. 2009 will be the year of implementation and the exchange of best practices.
In recent years Actal has increasingly focused on regulatory pressure and administrative burdens among local authorities. Municipal authorities are certainly a major implementer of national regulations and are often the first point of contact for citizens and businesses. In order to arrive at discernibly less regulatory pressure the commitment of municipal administrations is essential. When the decree establishing Actal was amended in 2008 the Cabinet formalized its advisory task in respect of these administrations. Actal was established to bring about a culture transformation among lawmakers and this is also the goal of its advice at local level: to bring about a culture transformation among local and regional authorities. Actal is concentrating on municipal authorities. The regulatory pressure caused by provincial authorities is less.
From the summer of 2008 Actal, after consulting the Steering Group Regulatory Pressure, the Ministry of the Interior and Kingdom Relations, the Association of Netherlands Municipalities (VNG) and SenterNovem, among others, fleshed out its new advisory task. Actal will be effective if the advisory opinions it delivers can be generally applied. The opinions will therefore be more in the nature of strategic advice than of advisory opinions on regulatory proposals of local authorities. Actal can also play a part in getting matters
35 annual report 2008 | Progress at local level
on the agenda and a driving role in solving problem areas in national regulations that are an obstacle to reducing regulatory pressure at local level. The advisory task speaks about regulatory pressure. This means that in addition to furnishing advice on administrative burdens Actal also advises on substantive compliance burdens, supervisory burdens, interagency burdens and the provision of service.
A start was made immediately in 2008 on a number of activities. In the 2007 administrative agreement central government and VNG agreed on a reduction target of 25% fewer local administrative burdens on citizens and businesses. Actal deems it of great importance that this reduction target be enforceable. With the local council elections of 2010 in mind it has therefore sent a letter to all national political parties in which it requests attention for local regulatory pressure in the support documentation these parties provide for their local branches. Actal therefore deems it important for the following things to be achieved within municipalities. - The municipal executive should draw up an action plan containing a concrete target for reducing regulatory pressure. - The impacts of this new policy on the regulatory pressure should be mapped out and explained in a policy proposal before a proposal for new policy is debated in the municipal executive. - One member of the executive should be responsible for coordinating the reduction of regulatory pressure. This member should have the possibility to intervene in a policy proposal in the executive if the impacts on regulatory pressure have not been mapped out. - Both the municipal executive and the council should actively draw the Cabinet’s attention to excessive interagency burdens and possibilities for reducing them. Actal advocates having these elements included in the municipal election programmes. The VNG, employers’ organization VNO-NCW and the organization for small and medium-sized enterprises MKB-Nederland have welcomed the Actal initiative.
In 2008 Actal had a study conducted of frequently occurring information requirements of municipalities. This study produced a list of information municipal authorities should no longer need to request from citizens and businesses because it is already available within the organization or from another authority. Actal has drawn the attention of the municipalities to this list in collaboration with the VNG. The list also produced a number of points Actal will discuss with the Cabinet. In some cases central government needs to amend the regulations before it is possible to cease asking an applicant for the information.
The table below summarizes the superfluous information requirements. It contains 19 requests for information that municipalities should no longer need to make. The municipal products for which this information is requested is stated alongside, together with a possible alternative. An indication is also given of the target groups - businesses (Bu), citizens (Ci) or organized citizens (Oc) - required to submit the information.
Information requirements can be abolished. There are no impediments.
Information requirements can be abolished, provided the municipality removes certain impediments.
Information requirements can be abolished, but the municipality needs to make arrangements on this with another government body. This may also concern a legal impediment. Progress at local level | annual report 2008
Overview of superfluous information requirements of municipal authorities (ranked by colour and not importance)
Application Often requested for Alternative Obstacle Bu Ci Oc requirements
1 Copy of ID Permit for a pavement café, Do not request, or only ask for x x x market or vending stall ID registration number
2 Central Bureau on Door-to-door fundraising permit Do not request, can be checked x x Fundraising (CBF) seal free of charge on CBF website of approval
3 VAT registration Market or vending stall permit Do not request. x number
4 Proof of third-party Market or vending stall permit Do not request or only ask for registration x x liability insurance number. Having third-party insurance could be included as a precondition
5 Part 1A or IB of vehicle Parking permit, parking Do not request or only ask for vehicle x x x registration certificate dispensation registration number
6 Documents for Subsidies Do not request for minor amounts x x x determining subsidy (approx. €50 to €1,000)
7 Proof of registration Market or vending stall permit Not asking for the card has no status in law, x with Central or check yourself in the CRK register Registration Office (CRK card)
8 Copy of Chamber of Permit for a pavement café, Request from Chamber of Commerce on-line x x Commerce registration market or vending stall database certificate
9 Articles of Association Subsidies Request from Chamber of Commerce on-line x x database
10 Information issued by Building/entrance/ environmental This information is available within the local x x x the municipality itself permit authority
11 Drawings, photos of Building/entrance/environmental This information is available within the local x x x the current situation permit authority through visual software (Cyclorama, Google Earth)
12 Historical information Permit pursuant to Monuments This information is available within the local x x x Act or construction permit authority
13 Copy from the Marriage This information is available within the local x x x municipal personal authority records database
14 Land Registry Building/entrance/environmental Request from Land Registry x x x information permit
15 Copy of title deeds Permit to change dwelling status, Request from Land Registry x x x convert into flats, run as catering establishment
16 Multiple submission Building and demolition permit, Potential conflict with Decree governing x x x of data permit under Monuments Act information to be submitted with building permit application (S. 2)
17 Information on income Discharge from taxes and levies, Potential conflict with Personal Data x special benefit, social support act Protection Act (S. 8 Wbp) (WMO)
18 Social hygiene Alcohol and catering licence Potential conflict with requirements of x x certificate Regulations governing application details and forms under the Alcohol Licensing and Catering Act
19 Declaration of Tenders, alcohol and catering Possible conflict with Personal Data Protection x x x independent licences Act (S. 8 Wpb) and the Alcohol Licensing and contractor status Catering Act (S. 8) Source: Sira Consulting
6 Progress at international level
Insight and Actal verdict on reducing regulatory pressure at international level
Coordination Measurement Advice Baseline Net reduction target Burden ceiling Tenor of HLG advisory measurement in euro task
European DG Enterprise Results will be For now gross target Not applicable Strategic advice on Administrative announced in first 25% in priority areas existing regulations burden on business half of 2009
International interest in the Dutch approach to tackling administrative burdens continues unabated. On 8 December 2008 the State Secretary for Finance and the Minister for Foreign Trade presented the follow-up report of the World Bank on the Dutch regulatory pressure programme for businesses to the Lower House.17 In the report ‘Review of the Dutch Administrative Simplification Programme’ the Dutch approach is once again acclaimed, with particular appreciation for its expansion.
In 2008 Actal received various delegations from different countries, including Romania, Turkey, Ukraine, Korea, the United Kingdom, Sweden, and a delegation of various origin from the Middle East and North Africa. We often receive these delegations because of the high international recognition of the Dutch approach to administrative burdens. Other countries want to learn from it. During these visits Actal shares its views on how administrative burdens can best be combated and what the critical success factors are in this.
Actal works closely together with its European sister organizations, such as Germany’s Normenkontrollrat. Actal is delighted that Sweden too has created its own ‘Actal’. This Regelrådet is chaired by Mr Stig von Bahr, a former member of the judiciary. The Regelrådet will make its official start on 16 March 2009. Until 31 December 2010 the Board will be reviewing the quality of impact assessments of legislative proposals. It can also advise on a cost-conscious and effective regulatory framework.
Actal also receives invitations to give presentations on the Dutch approach to administrative burdens. For example, in 2008 Actal visited Mexico to speak at an OECD workshop on the occasion of the start of a Mexican programme to combat bureaucracy. At the Australian embassy Actal conferred with Australia’s Minister for Finance and Deregulation Lindsay Tanner. In Slovenia, EU president in early 2008, Actal gave a presentation at the conference ‘Reduction of Administrative Burdens on SMEs’.18 In London Actal explained the Dutch model and Dutch experience in reducing the administrative burden at the seminar `Creative thinking on better regulation’ organized by The Institute of Chartered Accountants in England and Wales’ (ICAEW).
39 annual report 2008 | Progress at international level
In order to meet the interest from the various countries the Dutch approach has been written up as ‘best practice’ in an article entitled Institutions for Better Regulation: The Example of the Netherlands, 2002-2007. The article was prepared in collaboration with the Steering Group Regulatory Pressure and has been published as a chapter in the book by André Nijsen ed. et al, Business Regulation and Public Policy. The Costs and Benefits of Compliance (New York 2009). In the Swiss journal of the Kantonaler Gewerbeverband Zürcher Wirtschaft the Dutch approach is briefly explained in the article written by Actal ‘So machens die Holländer’.19
Almost 50% of the administrative burdens of Dutch businesses originate from European regulations. It is therefore important to reduce these burdens at European level as well. Actal follows European developments closely and in 2008 made an active contribution through the High Level Group of Independent Stakeholders on Administrative Burdens (HLG). The European Commission decided to set up the HLG on 31 August 2007. The High Level Group is chaired by Dr Edmund Stoiber, the former prime minister of Bavaria (Germany), and was set up for a period of three years. The fourteen members of the HLG were appointed on 23 November 2007 in a personal capacity on the basis of their knowledge and experience. The HLG advises the European Commission on: - possibilities for reducing administrative burdens, - methodological aspects of the European Action Programme,20 - additions to the European baseline measurement of administrative burdens. The thirteen priority areas of the European Action Programme are subdivided among the members. The HLG delivers an advisory opinion containing reduction proposals for each area to the European Commission.
Robin Linschoten has been appointed a member of the HLG. He will be continuing these activities in 2009 and 2010. He is the rapporteur for the priority areas financial services and pharmacy and is also co-rapporteur for public procurement and coordinator for the stakeholder consultations. Actal supports Robin Linschoten in his work in the HLG.
In October 2008 Dr Edmund Stoiber visited the Netherlands, a visit organized by Actal. Mr Stoiber visited Ballast Nedam, OPG and the Rabobank Group, companies that fall within the priority areas in which Robin Linschoten is rapporteur/co-rapporteur. Mr Stoiber also spoke to State Secretary De Jager, VNO-NCW chairman Bernard Wientjes and the chairman of MKB-Nederland, Loek Hermans. At these meetings the specific problems with regard to administrative burdens that European regulations cause for Dutch companies, were discussed in detail. The companies’ input on the issue of public procurement was incorporated in the HLG’s opinion on this matter. The opinion in question is the ‘opinion public procurement’. Actal will also take into account the suggestions from the fields of pharmacy and financial markets in the preparations for the HLG advisory opinions on these topics.
40 Progress at international level | annual report 2008
HLG opinions 2008 21
Opinion Fast Track Actions 2008 26 February 2008 Opinion Company Law/Annual Accounts 10 July 2008 Opinion stakeholders suggestions 18 September 2008 Opinion Invoicing in the VAT directives 22 October 2008 Opinion Public Procurement 10 December 2008
In its opinion on company law/annual accounts the HLG recommended inter alia that in the EU regulations on accounting and auditing the Commission should enable member states to exempt small businesses from these obligations. The Commission adopted this recommendation. The Steering Group Regulatory Pressure, the Ministry of Economic Affairs and the Ministry of Justice are currently studying the possibilities for the Dutch situation.
In its opinion on public procurement the HLG brought up the height of the public procurement threshold, among other things. This threshold has been fixed since the 1980s and has only been adjusted to account for fluctuations in exchange rates. In practice the costs associated with the bureaucratic efforts required in the case of lower amounts do not outweigh the benefits. Another recommendation was that the information requested in public procurement procedures should, where possible, only be demanded on award of the contract. This would relieve four of the five competitors of many administrative burdens.
In January 2008 a ‘Learning Team on administrative burden reduction for citizens’ was established within EUPAN (European Public Administration Network). The Dutch Ministry of the Interior and Kingdom Relations was one of the backers of the European manual on the standard cost model for administrative burdens on citizens. This could be the start of getting the administrative burden on citizens onto the agenda at European level.
41 Annex 1 Advisory opinions
The overview shows how many advisory opinions on proposed laws and regulations Actal delivered in 2008 and what the ultimate conclusion was. The last column lists the number of dossiers on legislative and regulatory proposals that did not end with formal advice.
Laws and No. of Yes Yes, but No, No Other No. of dossiers regulations from opinions only after unless without formal advice
Foreign Affairs 0 1 Interior and Kingdom Relations 0 4 Defence 0 0 Economic Affairs 10 2 6 1 1 31 Finance 5 3 1 1 9 Youth and Families 2 2 2 Justice 1 1 11 Agriculture, Nature and Food Quality 0 16 Education, Culture and Science 6 4 2 24 Social Affairs and Employment 9 3 3 3 4 Transport, Public Works and Water 9 4 3 2 24 Management Housing, Spatial Planning and 3 3 11 the Environment Health, Welfare and Sport 2 2 12 Lower House 0 2 Total 47 23 15 8 1 151
In 2008 Actal delivered the following advisory opinions on government policy for reducing the administrative burden on businesses and on citizens.
Method and baseline measurement for administrative burden March 2008
Draft manual and baseline measurement for other compliance costs for businesses May 2008
Design of the integral assessment framework for policy and legislation June 2008
Interim report on government-wide framework for financial control of subsidies October 2008
Fixed effective dates of change November 2008
Progress reports on reduction in regulatory pressure December 2008
42 Annex 2 Studies
Retain or discard duty Faculty of Law eLaw@Leiden
Retain or discard duty for small businesses EIM
Practical study of regulatory pressure reviews IOO
Pilot measurement of other costs of complying with Buildings Decree Ecorys
Administrative burden and other compliance costs resulting from a change in the payroll return system for ‘wages for’ businesses SIRA Consulting B.V.
Inventory of Superfluous Submission Requirements for Municipal Administrations SIRA Consulting B.V.
Study that will be completed in the first quarter of 2009
Provision of service by public implementing agencies Ernst & Young
43 Annex 3 Definitions
Administrative burden: the costs incurred by businesses and citizens for complying with information obligations stemming from government laws and regulations. They cover gathering, processing, recording, retaining and providing information.
Regulatory pressure: the investment and effort citizens, businesses, institutions and professionals are required to make and the restriction on freedom they suffer in order to abide by rules. They include the room allowed by rules for alternative behaviours (freedom of choice), the knowability and transparency of the rules, consistency with other rules, how rules are implemented and observance assured, how rules are enforced and infringements punished, and the administrative burden.
Other or substantive compliance costs: the direct cost to businesses of observing laws and regulations, with the exception of the administrative burden and financial levies. The costs in question are the ones companies have to incur in order to meet the specific requirements laid down by the government or government-appointed agencies in laws and regulations (e.g. standards, rules, procedures) relating to the conduct of people and condition of buildings, means of production or the production process, the provision of services, organization of accounts, products and services.
Interagency administrative burden: the cost to government/semi-government agencies or private agencies with a public task for performing actions, or causing them to be performed, in order to comply with information obligations arising under laws and regulations of other public-sector bodies. This covers assessing, collecting, processing, recording, retaining and providing information. Interagency relates to the relationships between and among organizations in the public sector. The public sector comprises the public administration (state and semi-state) and private organizations with a public task.
44
Annex 4 Actal
Actal has three Board members: Mr S.R.A. (Steven) van Eijck (chairman), Ms F.C. (Francine) Giskes, Mr T.R.C. (Tjark) de Lange. The Board is assisted by a secretary Mr R.W. (Rudy) van Zijp and a staff of 12. The secretariat’s composition and tasks are as follows:
Mr. J.A. (Jeroen) van Bockel Housing, Spatial Planning and the Environment Housing, Communities and Integration Mr J.J.H.W. (Robin) Hamerlinck Finance Ms F.J.G. (Saskia) van Klink Justice Foreign Affairs General Affairs Mr R.G.J. (Roel) Lauwerier Social Affairs and Employment Mr P.B. (Patrick) Lut Transport, Public Works and Water Management Defence Ms C. (Claire) Mesman Public Health, Welfare and Sport Agriculture, Nature and Food Quality Ms P. (Paulien) Officier Youth and Families Mr A.A. (Ahmed) Moaty Policy support officer Ms A.S. (Anushka) Premchand Secretary Mr P.H. (Peter) Sevat Economic Affairs Mr J.A. (Jaap) Sleifer Interior and Kingdom Relations Education, Culture and Science Ms C.R. (Carla) Touw Secretary
Actal is based on the 2006 Decree amending the Decree establishing the Advisory Board on the Administrative Burden in connection with the extension of its mandate, the increase in the number of its Board and the expansion of its duties, Bulletin of Acts and Decrees 2008, no. 259.22
46 Annex 5 Endnotes
1 Coalition Agreement ‘Working Together, Living Together‘ of 10 In the follow-up measurement two sections of the Buildings February 2007. Decree were studied as an example of a complex law. The study 2 The knowledge questions relate in particular to the aspects of demonstrates that the cost of complying with a law of this kind is ‘cause’, ‘measuring’ and ‘measures’ and to a lesser extent to the in principle measurable, but that the time taken and cost of the aspect of ‘scope’. The attitude questions focus on the dimensions of observations are much higher than for a similar measurement of ‘problem perception’, ‘steps taken’ and ‘vision of the future in the administrative burden. It further transpires that a telephone relation to the administrative burden’. Widely varying attitude interview produces comparable results to a face-to-face interview. questions regarding these dimensions reveal the attitude of the 11 It emerges from the 2002 baseline measurement that the respondents in regard to the administrative burden. The behaviour administrative burden for citizens resulting from central questions constitute the third element of ‘internalization’. In the government regulations amounts to around 100 million hours case of behaviour the questions revolve around matters such as: and 1.25 billion euros. The Dutch Civil Code contains most of the ‘Have you made any structural changes in your work in response to administrative burdens for citizens, which include the obligation the effort to minimize the administrative burden?’ to register births, deaths and marriages, for example. The 2008/2 issue of the journal RegelMaat contains an illustrative 12 This review results in a final judgment, of which Actal has four article on ‘Culture transformation in legislation’ published by R.L.O. categories: ‘introduce’, ‘introduce after’, ‘do not introduce unless’, Linschoten, J.A. Kamps and J.A. Sleifer. do not introduce’. In the case of ministerial decrees we say ‘adopt’ 3 Parliamentary Papers II 2007–2008, 29 515, no. 228. instead of ‘introduce’. Actal publishes its advisory opinions on 4 Parliamentary Papers II 2007–2008, 29 515, no. 267. www.actal.nl when they become public, which is when they are 5 Preparations have been made at civil servant level to ensure the put before the Lower House or are published in the Government success of this test case. Actal will deliver an opinion on an Gazette. amendment within a few days of receiving the relevant 13 Since its start in 2000 the assessment of the Actal review has information. Together with the coordinating departments Actal has remained relatively consistent. The trend in opinions is given from also given a course on the administrative burden and regulatory 2003 because in the early years far more often proposals for new pressure to employees of the Legislation Bureau. regulations were wrongly not submitted to Actal. These proposals 6 For example, on 28 January 2008 at the request of the Minister would probably have been given a negative assessment. for Foreign Trade Actal delivered an opinion on the amendments 14 Parliamentary Papers II 2008–2009, 31 731, no. 1. and motions adopted when the Amendment of the 15 Parliamentary Papers II 2008–2009, 29 515, no. 270. Telecommunications Act relating to the establishment of an 16 Parliamentary Papers II 2008–2009, 29 515, no. 274. antenna register was debated. It transpired that the consequences 17 Parliamentary Papers II 2008–2009, 29 515, no. 281. of these proposals had not been adequately mapped out in terms 18 SMEs: Small and medium-sized enterprises. of figures. Actal advised the Minister to inform the Upper and 19 ’So machens die Holländer’ in Zürcher Wirtschaft 17 April 2008, Lower House of the scale of all the consequences for the 4/2008. administrative burden for citizens and businesses. This Actal 20 COM (2007) 23; Action Programme for Reducing Administrative opinion does not contain an ultimate conclusion of ‘Yes’, ‘Yes but Burdens in the European Union only after’, ‘No unless’, or ‘No’. In the overview of dossiers with 21 All advisory opinions can be found on the website of the HLG. formal advice in Annex 1 this Actal opinion is listed in the category http://ec.europa.eu/enterprise/admin-burdens-reduction/ ‘other’. highlevelgroup_en.htm#opin. 7 Parliamentary Papers II 2008–2009, 29 515, no. 269 and 22 The earlier decrees are: Parliamentary Papers 2008-2009, 29 362, no. 145. In November - Decree establishing the Advisory Board on Administrative 2008 the departmental reduction plans of Economic Affairs, Justice, Burden, Bulletin of Acts and Decrees 2000, no. 162. Transport, Public Works and Water Management, Housing, Spatial - Decree renewing the Advisory Board on Administrative Burden, Planning and the Environment and Health, Welfare and Sport were Bulletin of Acts and Decrees 2004, no. 66. presented to the Lower House. - Decree extending the tasks of Actal to the administrative 8 The State Secretary for Finance and the Minister for Foreign Trade burden on citizens, Bulletin of Acts and Decrees 2005, no. 113. are assisted by a single directorate: the Task Group Regulatory - Decree establishing the Advisory Board on Administrative Pressure. The rules of play for reducing the administrative burden Burden 2006, Bulletin of Acts and Decrees 2006, no. 138. for businesses, which are laid down in Annex 7 of the 2008 Budget Memorandum, enable this directorate to function well. 9 MKB Nederland and VNO-NCW write in their letter of 11 December 2008 to the Lower House that there is a certain amount of proliferation in projects focusing on municipal regulatory pressure. An attachment to this letter contains a list of 40 current projects involving municipal regulatory pressure.
47 Colophon
Text Actal, The Hague Translation S. Brouwer Vertalingen, Noordeloos Photographs Gerhard van Roon, The Hague Design Studio Tint, The Hague Print Drukkerij van Deventer, ’s Gravenzande
Actal Lange Voorhout 58 The Hague P.O. Box 16228 2500 BE The Hague t +31 (0)70 310 86 66 f +31 (0)70 310 86 79 e [email protected] i www.actal.nl
© 2009 Actal, The Hague
Actal’s mission Actal is a temporary, independent advisory To promote this culture transformation Actal board whose aim is to bring about a culture advises the government and Parliament on transformation among lawmakers, whose the impact of regulatory pressure from duty it is to reduce the regulatory pressure on planned laws and regulations and on pro- businesses, citizens, institutions, professionals grammes to reduce existing regulatory pres- and local authorities automatically and on a sure. Actal supports lawmakers and local permanent basis. authorities by carrying out projects that con- tribute to the mitigation of regulatory pres- sure, for example.