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Measuring and Reducing the Burden of Regulation

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Measuring and Reducing the Burden of Regulation Issues Paper Measuring and Reducing the Burden of Regulation August 2012 Level 19, 12 Creek Street Brisbane Queensland 4000 GPO Box 2257 Brisbane Qld 4001 Telephone (07) 3222 0555 Facsimile (07) 3222 0599 [email protected] www.qca.org.au The Authority wishes to acknowledge the contribution of the following staff to this report Alex Dobes, John Fallon, Dan Kelley, Sean Moroney and Ana Zolotic © Queensland Competition Authority 2012 The Queensland Competition Authority supports and encourages the dissemination and exchange of information. However, copyright protects this document. The Queensland Competition Authority has no objection to this material being reproduced, made available online or electronically but only if it is recognised as the owner of the copyright and this material remains unaltered. Queensland Competition Authority Submissions SUBMISSIONS The Authority has been directed to investigate and report on a framework for measuring and reducing the burden of regulation. This Issues Paper outlines key issues relevant to the investigation. Public involvement is an important element of the decision-making processes of the Queensland Competition Authority (the Authority). Therefore submissions are invited from interested parties on how to measure and reduce the burden of regulation. The Authority will take account of all submissions received. Written submissions should be sent to the address below. While the Authority does not necessarily require submissions in any particular format, it would be appreciated if two printed copies are provided together with an electronic version on disk (Microsoft Word format) or by e-mail. Submissions, comments or inquiries regarding this paper should be directed to: Office of Best Practice Regulation Queensland Competition Authority GPO Box 2257 Brisbane QLD 4001 Telephone: (07) 3222 0555 Fax: (07) 3222 0599 Email: [email protected] The closing date for submissions is 31 August 2012. Confidentiality In the interests of transparency and to promote informed discussion, the Authority would prefer submissions to be made publicly available wherever this is reasonable. However, if a person making a submission does not want that submission to be public, that person should claim confidentiality in respect of the document (or any part of the document). Claims for confidentiality should be clearly noted on the front page of the submission and the relevant sections of the submission should be marked as confidential, so that the remainder of the document can be made publicly available. It would also be appreciated if two copies of each version of these submissions (i.e. the complete version and another excising confidential information) could be provided. Again, it would be appreciated if each version could be provided on disk. Where it is unclear why a submission has been marked “confidential”, the status of the submission will be discussed with the person making the submission. While the Authority will endeavour to identify and protect material claimed as confidential as well as exempt information and information disclosure of which would be contrary to the public interest (within the meaning of the Right to Information Act 2009 (RTI)), it cannot guarantee that submissions will not be made publicly available. There is a possibility that the Authority may be required to reveal confidential information as a result of a right to information request. Public access to submissions Subject to any confidentiality constraints, submissions will be available for public inspection at the Brisbane office of the Authority, or on its website at www.qca.org.au. If you experience any difficulty gaining access to documents please contact the office (07) 3222 0555. Information about the role and current activities of the Authority, including copies of reports, papers and submissions can also be found on the Authority’s website. i Queensland Competition Authority Glossary GLOSSARY Term Definition ACCI Australian Council of Commerce and Industry ARI Annual Recurring Interval Authority Queensland Competition Authority BCC Business Cost Calculator CCIQ Chamber of Commerce & Industry Queensland NCP National Competition Policy OECD Organisation for Economic Co-Operation and Development OBPR Office of Best Practice Regulation QCA Act Queensland Competition Authority Act 1997 RCM Regulatory Change Measurement RIS Regulatory Impact Statement SCM Standard Cost Model ULDA Urban Land Development Authority VCEC Victorian Competition and Efficiency Commission VMA Vegetation Management Act WSUD Water Sensitive Urban Design ii Queensland Competition Authority Task, Timing and Contacts TASK, TIMING AND CONTACTS Task The Treasurer and Minister for Trade and the Attorney General and Minister for Justice (the Ministers) have directed the Authority to investigate and report on a framework for reducing the burden of regulation. The Ministerial Direction Notice is in Appendix A. This Issues Paper outlines key issues relevant to the investigation and seeks submissions from interested parties on how to measure and reduce the burden of regulation. Key Dates Receipt of terms of reference: 3 July 2012 Release of issues paper: 3 August 2012 Due date for submissions: 31 August 2012 Consultation with interested stakeholders: August – September 2012 Interim report for government: 1 November 2012 Final report for government: 31 January 2013 Registration of interest If you are interested in participating in this review, please provide your contact details by email, fax or mail as per the Submissions Page above. Contacts Dan Kelley: 07 3222 0516 [email protected] Website: www.qca.org.au iii Queensland Competition Authority The Role of the Authority THE ROLE OF THE AUTHORITY The Authority is an independent statutory authority established by the Queensland Competition Authority Act 1997 (the QCA Act). The QCA Act was recently amended to allow the Authority to be directed to: (a) investigate, and report on, any matter relating to competition, industry, productivity or best practice regulation; and (b) to review and report on the adequacy of regulatory assessment statements prepared for proposed legislation. These amendments have led to the establishment of an Office of Best Practice Regulation (OBPR) in the Authority, which has responsibility for the current review of the regulatory burden of regulation. Information about the role and current activities of the Authority can be found on the Authority’s website at www.qca.org.au. iv Queensland Competition Authority Table of Contents TABLE OF CONTENTS PAGE SUBMISSIONS I GLOSSARY II TASK, TIMING AND CONTACTS III THE ROLE OF THE AUTHORITY IV EXECUTIVE SUMMARY VIII 1. PROPOSED FRAMEWORK FOR REDUCING THE BURDEN OF REGULATION 1 1.1 Measurement of Regulatory Burden 1 1.2 Prioritisation Criteria for Regulatory Reform 2 1.3 Whole of Government Regulatory Management System 3 1.3.1 Coverage 3 1.3.2 Ministerial Responsibility 3 1.3.3 Departmental Responsibility 4 1.3.4 Local Government Responsibility 4 1.3.5 Incentives for Reform 4 1.3.6 Review process 5 1.3.7 OBPR Responsibility 5 1.4 Review Priorities 6 1.4.1 Priorities for Fast Track Reform 6 1.4.2 Medium Term Priorities for Reform 7 1.5 Summary of Key Management Features and Timing 7 1.6 Consultation Issues 10 2. THE AUTHORITY’S APPROACH TO THE REVIEW 12 2.1 Scope of the Review 12 2.2 Ministerial Reviews 12 2.3 Consultation 12 2.4 Assessment of the Information 13 3. CONTEXT AND RATIONALE FOR REVIEWING REGULATION 14 4. NATURE AND EXTENT OF THE REGULATORY BURDEN 16 4.1 Administrative and Compliance Costs 16 4.2 Delay Costs 17 4.3 Other Regulatory Costs that Affect the Community as a Whole 18 4.3.1 Regulations that Apply to Individuals 18 v Queensland Competition Authority Table of Contents 4.3.2 Regulations that Restrict the Optimum Operation of Business 18 4.4 Consultation Issues 19 5. APPROACHES TO IDENTIFYING AND MEASURING REGULATORY BURDENS 20 5.1 Framework for Measuring Administrative and Compliance Costs 20 5.1.1 Aggregate Measures of Administrative and Compliance Burden 20 5.1.2 Cost Models for Measuring Administrative and Compliance Burden 21 5.2 Delay Costs 25 5.3 Net versus Gross Burden Reduction 26 5.4 Surveys 26 5.5 Case Studies 27 5.6 Invitation to participate in a field study of the overall burden of regulation 28 5.7 Other Costs that affect the Community as a Whole 28 5.8 Regulatory Burden Benchmarks 29 5.9 Consultation Issues 31 6. APPROACHES FOR CONDUCTING REVIEWS OF THE EXISTING STOCK OF LEGISLATION 32 6.1 Management Approaches 32 6.2 Programmed Review Mechanisms 33 6.3 Public Stocktakes and Principles-Based Reviews 33 6.4 Cost Effectiveness of Approaches to Managing and Reviewing the Stock of Legislation 34 6.5 Departmental Considerations 34 6.6 Governance Principles and Arrangements 35 6.6.1 Incentives 35 6.6.2 Independence and Resourcing 36 6.6.3 Consultation and Transparency 36 6.6.4 Government response 36 6.7 Consultation Issues 36 7. IDENTIFYING AND PRIORITISING AREAS FOR REGULATORY REVIEW 38 7.1 Classification of Legislation and Regulations 38 7.2 Criteria for Prioritisation of Regulatory Reviews 39 7.3 National Competition Policy 40 7.4 Market Failure Test 40 7.5 Linkages to Management Approaches and Programmed Reviews 41 7.6 Progress in Reducing Regulatory Burdens in Other Jurisdictions 41 7.6.1 New South Wales 41 7.6.2 Victoria 42 7.7 Consultation Issues 43 vi Queensland Competition Authority Table of Contents 8. A REGULATORY MANAGEMENT SYSTEM FOR REDUCING AND IMPROVING REGULATION 44 8.1 A Coordinated and Comprehensive Regulatory Management System 44 8.2 Clarity of Objectives 44 8.3 Clarity of Roles 45 8.4 Incentives 45 8.5 Capability 46 8.6 Consultation 46 8.7 Organisational Issues 46 8.8 Reducing duplication 47 8.9 A permanent formal mechanism for firms and individuals to seek a reduction in specific regulatory burdens 47 8.10 Consultation Issues 48 9.
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