Regulation Review - IPART - NSW Government

2 Local government compliance and enforcement
functions
Conversely, there is potential for unnecessary regulatory burden if the role of
each level of government in a regulatory area is uncertain or unclear to regulators
and/or business and the community. For example, this could lead to:
less than optimal regulatory resourcing: where one or both levels of
government are not optimally allocating resources to key regulatory areas –
which could add to business cost if there are delays in receiving responses or
approvals to regulatory applications
duplication: where both levels of government are undertaking the same, or
similar, regulatory activities – which could add to business cost if, for instance,
business is required to provide similar information to 2 levels of government
for the same regulatory area or issue
uncertainty: where there is uncertainty as to which level of government is the
responsible regulator – which could add to regulatory costs if regulated
businesses or individuals have to spend time trying to locate assistance or
information on regulatory requirements and how to comply.
2.3.2 Other forms of assistance from State Government
As well as providing clear guidance on regulatory roles, State Government can
play a role in enhancing the regulatory capacity and capability of local
government through providing training, resources and other forms of assistance
to local government.
In particular, adequate resourcing is vital for ensuring local government is
capable of fulfilling its regulatory role efficiently and effectively. Allocating or
hypothecating revenue, allowing councils to cost recover through fees and
charges and other measures can help to ensure adequate funding to achieve
regulatory outcomes.
The PC identified as a leading practice that State governments consider the
resource implications for local government when developing and/or reviewing
regulation. It noted that State governments can reduce the potential for
regulations to be administered inefficiently or inconsistently by ensuring councils
have adequate finances, skills and guidance to undertake new regulatory roles.
It stated this could be achieved by including an assessment of local government
capacities as part of the regulatory impact analysis for any regulation that
envisages a role for local government. 25 It also identified the importance of
adequate training and accreditation of local government officers to assist in
delivering good regulatory outcomes. 26
25 Productivity Commission, Performance Benchmarking of Australian Business Regulation: The Role of
Local Government as Regulator, July 2012, Vol 1, p 135.
26 Ibid, pp 172 & 174.
22 IPART Regulation Review