Industry-Innovation-and-Competitiveness-Agenda

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In
Industry Innovation and Competitiveness Agenda
TPO00007
International assessments of Australia’s
Binding companies in multiple strands of
regulatory regime also suggest Australia
red tape
needs to do better. In the 2014-15 WEF Global
The problem of multiple regulators and
Competitiveness Index, Australia’s burden of
regulations hampering commerce is not limited
government regulation was ranked 124th of
to small business: Boral Limited, an ASX100 listed
144 countries. The business community surveyed
Australian company, also struggles with red-tape.
has consistently cited bureaucracy and regulations
as significant issues in doing business in Australia
Boral operates in the building and construction
(World Economic Forum, 2010; 2011; 2012; 2013;
materials markets in Australia, Asia and the
2014a). In its 2010 review of regulatory reform,
United States. Its Australian arm produces
the OECD stated that while Australia has been
mineral construction materials, such as asphalt,
proactive in regulatory reform, it will need to
cement, concrete and bricks; timber building
maintain momentum, particularly on harmonising
products; construction-related items such as
and streamlining regulations (OECD, 2010a).
formwork and scaffolding, windows and concrete
Businesses have also raised concerns about how
wall panels; and a range of other building-related
Australia’s regulatory regime is administered,
products.
monitored and enforced. A key concern relates
By virtue of operating in all States and Territories,
to standards and risk assessments of some highly
Boral has been required to comply with more
regarded regulators in other advanced economies
than 450 regulatory and advisory instruments,
not being recognised in Australia. For example, in
with OHS regulation having been a particular
assessing medical devices, Australia’s Therapeutic
source of complexity. The various regulations
Goods Administration accepts certification of
included 8 principal OH&S Acts, 25 principal
medical devices by European Union Notified
Regulations, 45 other Acts, 49 other Regulations,
Bodies for the importation and use by Australian
144 Codes or Practice of Advisory Standards, and
medical facilities. However, Australian producers
more than 200 other guidelines. These covered
of medical devices that have been similarly
an array of areas include general health and
certified by European Union regulators must
safety issues, mining, dangerous goods, electrical
still also seek certification from the Therapeutic
safety, transport workers, compensation, gas and
Goods Administration. This means that, in the
others (Boral Ltd., 2009).
main, our manufacturers face more unpredictable
and lengthier timeframes for regulation domestically than their overseas competitors. Another
example is that the Australian industrial chemical risk assessment system makes insufficient
use of assessments and determinations conducted by highly-regarded overseas regulatory
authorities. This means a slow and expensive process to register many chemicals that are already
safely used internationally.
28 Industry Innovation and Competitiveness Agenda