Ministers To Give Reasons For Policy Process To Parliament?

The Productivity Commission reports today, after investigating the quality of governments’ efforts in assessing the cost of red tape to the community, that ministers often announce policies first with the costs coming later ‘as an afterthought’.

Some ‘Highly Significant’ Policies Not Properly Analysed

Examples of policies made exempt from red tape considerations and or not properly analysed include:

• The Minerals Resource Rent Tax
• The National Broadband Network
• The Fair Work Act

Research Findings

The research report ‘Regulatory Impact Analysis: Benchmarking’ indicates there is considerable scope to improve the way that regulations are developed and scrutinised in Australia. Different processes could improve policy development and ensure that regulations (or other policy initiatives) provide the greatest benefit to the community, relative to the overall cost imposed.

It seems there is a significant gap between agreed and actual practice.

“Regulatory impact analysis processes are failing to deliver on their potential due to inadequate ministerial and agency commitment..

Proposals with the largest impacts on communities are often not rigorously scrutinised.”

Commissioner Robert Fitzgerald says improvements could include:

• publication of all regulation impact statements and compliance assessments by oversight bodies
• the use of a two stage impact analysis process, with stakeholders being able to comment on all draft regulation impact statements
• reducing opportunities to avoid assessment
• more effective targeting of regulatory impact analysis resources
• ensuring that post implementation reviews are undertaken through an independent process

“More widespread and consistent adoption of the leading practices identified by the Commission, particularly in relation to transparency and accountability, would create stronger incentives for governments to demand and officials to deliver policies that are well considered and supported by rigorous analysis of different options and their impacts.”

Let’s not waste effort and resources