Advice on the reduction of regulatory pressure Annual report 2010 Advice on the reduction of regulatory pressure Annual report 2010 2 Recent publications of Actal are illustrated with photographs. This photography was based on a metaphor for the reduction of regulatory pressure or the work of Actal. This publication contains a selection of those photographs. In this way, the link is established with the investments made in the past for successful regulatory pressure policy in the future. Contents Foreword 5 1 Summary 7 2 Developments in 2010 9 3 Advice on regulatory proposals 18 4 Strategic advice 21 5 Reduction in regulatory pressure at local level 30 6 Reduction in regulatory pressure at international level 35 Annexes 1 Advisory opinions 38 2 Studies 39 Foreword The Hague, March 2011 In 2010, the starting signal was issued for a new phase in Dutch policy for restricting regulatory pressure on entrepreneurs, professionals, citizens and fellow authorities. By placing these target groups in the spotlight in our strategic analyses, a clearer picture has emerged of how regulatory pressure can be noticeably reduced. By combining a chain approach (interaction between: policy, implementation and supervision) and a cluster approach (an integrated and context-based inventory of a single target group, such as school heads), total regulatory pressure has been made visible. This means that an adequate approach leading to a structurally low level of regulatory pressure is within our grasp. The Dutch approach to reducing regulatory pressure has increasingly entered the stage in which any further approach will infringe more often on (political) policy considerations. With the broadening of the mandate of Actal, in its capacity as independent and external advisory body, the organization will have to be even more alert to this possibility. Traditionally, Actal is above all known for assessing the consequences of (central) government proposed regulations, in terms of regulatory pressure. This is an important role that since 2000 has been fulfilled in a manner perceived as clearly meaningful by the Cabinet, Parliament and other stakeholders. On an international level, the methods and approach have received recognition and been broadly followed. It has however now emerged that as well as considering the consequences for administrative burdens, it is also important to include other forms of regulatory pressure, such as substantive compliance costs and the costs of supervision. In addition, increased attention has been focused on other sources of regulatory pressure such as Europe and fellow authorities (provinces, water boards and municipal (sub)districts). Actal is convinced that partly thanks to its extended mandate, new opportunities are emerging for structurally and noticeably reducing regulatory pressure on entrepreneurs, professionals, citizens and fellow authorities. Actal is pleased to be able to contribute to reducing regulatory pressure by combining the knowledge and experience acquired over more than a decade with our renewed ambitions. S.R.A. van Eijck T.R.C. de Lange E. Helder Chairman of the Board Board member Board member 5 6 1 Summary The year 2010 saw the conclusion of a decade of regulatory pressure policy in the Netherlands, and the start of a new phase. The timeline 2010 shows the intensive response from Actal to the developments in the Netherlands. Timeline 2010 Netherlands Actal advisory opinions and initiatives 14 January Progress report on regulatory pressure on businesses 11 February Local ambitions for reducing regulatory pressure Fourth Balkenende Cabinet tenders 20 February resignation Local Council elections 3 March 5 March Progress report on service provision, regulatory pressure and information policy 12 April Towards a system of impact assessments for proposed policy and legislation Final reports reduction of regulatory pressure April 2 June Assuring the zero option in new policy 4 June Reducing regulatory pressure in election programmes Elections for the House of Representatives 9 June 24 June Seminar Effective approach to regulatory pressure beyond 2010 20 July Reducing regulatory pressure in new Cabinet policy 27 August Increased municipal attention for approach to regulatory pressure 27 September School heads unchained Entering into office of Cabinet Rutte-Verhagen 14 October 29 October Rich past, promising future for the reduction of regulatory pressure • Third internalization study • Anchoring of the ex ante review • Evaluation Actal 2007 – 2010 12 November Strengthening Dutch EU policy preparation in order to curb European regulatory pressure 22 November Coalition agreement and limiting regulatory pressure With its advisory opinions and initiatives, Actal has provided useful building blocks to administrators and lawmakers, on the basis of which substantive content can be determined for the next phase of regulatory pressure policy. Actal has also described the pillars on which the implementation of this policy can be based locally, nationally and internationally. These efforts were undertaken based on the knowledge that on 1 June 2011, Actal will have to bring its work to its natural conclusion. 7 annual report 2010 | Summary Looking back over the past few years we see that the sphere of operations of Actal has undergone tremendous development. At the start, in 2000, Actal was only authorized to consider the consequences of proposed regulations on administrative burdens for businesses. In the first expansion in 2004, this mandate was broadened to include the consequences of existing regulations on the administrative burden for businesses. A second expansion took place in 2005. Since then, Actal has also been authorized to issue advice on the consequences of proposed and existing regulations on the administrative burden for citizens. In 2008, the strategic advisory task of Actal was further expanded. From that moment onwards, Actal was authorized to issue strategy advice on the entire area of regulatory pressure. This for example relates to the development and application of the integral assessment framework, the reduction of regulatory pressure on professionals. Also since 2008, Actal has been tasked with issuing advice to all levels of government on all areas of regulatory pressure. In 2008 and 2009, Actal entered into covenants with ministries on ex ante reviews. As a consequence, the ministries themselves were given greater responsibility. From mid- 2011 onwards, Actal will no longer be assessing all regulations on an ex ante basis, but will exclusively carry out a system review. The ministries themselves will then bear full responsibility for addressing regulatory pressure. In this system review, Actal will however be able to make use of the knowledge and experience accrued through the evaluation of the covenants. In 2010, greater focus was placed on issuing advice from the perspective of citizens and businesses. In this way, Actal aims to contribute to the increased perception of lower regulatory pressure. The Rutte-Verhagen Cabinet has also given Actal a new task. On the basis of specific complaints, Actal will act as external assessor, whereby naming and shaming become clear possibilities. Furthermore, for a restricted number of major dossiers, Actal will issue ex ante advice on proposed regulations. In the spring of 2011, a decision will be taken on the new mission and name for Actal. 8 2 Developments in 2010 Introduction 2010 was hallmarked by the change of Cabinet. This meant the end to a phase in the reduction of regulatory pressure. Preparations were also made for further restricting regulatory pressure. In both respects, Actal made its contribution. This chapter brings together the old and new phases, and the initiatives undertaken by Actal in 2010. Review of regulatory pressure policy, fourth Balkenende Cabinet Cabinet objectives The objectives for the period 2007 – 2011 for the fourth Balkenende Cabinet were as follows. In the period 2007 – 2011, administrative burdens for businesses were to be reduced by one quarter net. Whether or not this objective would be achieved was more than half dependent on the reduction measures due to be introduced in 2010 and 2011. The fourth Balkenende Cabinet eventually succeeded in achieving about half of its reduction objective. No net reduction target was laid down for the restriction of substantive compliance costs. For supervisory burdens, a domain-based approach was chosen, and a reduction target of 25% was set for the period 2007 – 2011. The administrative burdens for citizens were set to be reduced by a net total of 25% in the period 2005 – 2011. This target was fully achieved in terms of time and almost in terms of costs. The interagency burden fell by 25% net in the period 2007 – 2011. In terms of administrative burdens for professionals, the Cabinet wanted to solve the top 5 bottlenecks in 16 profiles. Advisory opinion Progress report on regulatory pressure on businesses At the start of 2010, Actal issued an advisory opinion on the progress of reducing regulatory pressure on businesses. The conclusion of the opinion is that the fourth Balkenende Cabinet had set the right course, but was moving forward too slowly. Actal issued advisory opinions on managing the risks in achieving the targets, and considered increasing the noticeability of the reduction in administrative burden using ICT applications, restricting substantive compliance costs and supervisory burdens. Actal further recommended employing common commencement dates and minimum implementation