Regulation Review - IPART - NSW Government

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3 Identifying reform opportunities Box 3.4 NSW Better Regulation Office – draft elements of good regulatory practice: Risk based regulation – risk assessments inform all regulatory activities – a range of interventions including regulatory and non-regulatory options – concentrate resources in areas that threaten the achievement of outcomes – intelligence-led operational risk targeting and inspections – proportionate and meaningful sanctions promote behaviour change. Accountability – common standards and expectations about the way the regulator works – clear governance of outsourced regulatory functions – monitor performance and the extent to which the regulator meets its objectives. Service efficiency – cost efficient delivery of regulation that is business-friendly and achieves outcomes – streamline transactions with business and community and improve e-capability; require information to be provided to government only once – implement appropriate planning and resource management practices. Outcomes focus – clearly defined and published regulatory outcomes to enhance transparency – compliance action that is directed towards the achievement of results, rather than imposing enforcement outputs. Improvement framework – experiment with what works, evaluate closely – adapt interventions to their effectiveness in achieving intended outcomes – benchmark regulator performance and identify good practice – collaborate with other regulators. Understand business and community – building and monitoring effective stakeholder relationships – understanding the reasons and context for non-compliance – engage stakeholders in identifying risk, risk analysis and evaluation of regulator performance – provide authoritative and accessible advice and information. Culture – support economic progress by being less bureaucratic and less administratively burdensome for business – a program of continuous training and capacity building within regulatory agencies. Source: Better Regulation Office, unpublished, August 2012. 38 IPART Regulation Review
3 Identifying reform opportunities A Primary Authority Scheme (PAS) A Primary Authority Scheme (PAS), based on the UK’s PAS, would be aimed at providing more regulatory consistency and certainty for businesses that operate across a number of local government areas. Under this scheme, the business can form a partnership with a single council who becomes the primary authority with which other councils must defer to in relation to regulatory compliance issues (see Box 3.5 below). 57 The VCEC, as part of its Inquiry on Streamlining Local Government Regulation, has examined the advantages and disadvantages of the PAS. On balance, the VCEC concluded: The primary authority scheme is a promising innovation, which could reduce inconsistencies that impose significant costs on businesses … However … more information is needed before the proposal is considered in Victoria. 58 We note that the benefits of PAS would depend on the extent to which differences or inconsistencies in regulatory approaches across councils impose unnecessary regulatory burdens on businesses and the community. These benefits would then have to be weighed against the costs of establishing and running the PAS. 57 Productivity Commission, Performance Benchmarking of Australian Business Regulation: The Role of Local Government as Regulator, July 2012, Vol 1, p 75. 58 Victorian Competition and Efficiency Commission, Local Government for a Better Victoria: An Inquiry into Streamlining Local Government Regulation – Final Report, August 2010, p 311. Regulation Review IPART 39
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