REDUCING ADMINISTRATIVE COSTS Regulatory Reformgroup Istanbul 20/11/07

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REDUCING ADMINISTRATIVE COSTS
Regulatory Reformgroup
Istanbul 20/11/07
Institutional Capacitıes
Dutch Approach
Ambition the Netherlands
Quantitative target: 25% net
How?
 Systematic measurement
 Budgetting AB per ministry
 Involvement of business sector
 Interministerial coordination and
monitoring by Min Fin
Rules of the Game
 Every Minister has maximum of AB
 Sum is 75% of 2003 stock
 Ministers not allowed to exceed the
maximum ( ≈ budget )
 Hence: obligatory compensation &
ex-ante calculations
 Reduction packages
Involvement Stakeholders




Independent Advisory Board (ACTAL)
Interministerial unit (IPAL)
Website for complaints and suggestions
Involvement business sector
Dutch AB Approach in a Nutshell
€
€
€
 SCM makes hidden costs
transparant
 Budgetting creates
scarcity
 Interministerial approach
using satellites
 Involve stakeholders
 External advisory board
Decision making proces
and polıcy actıon
Business Impact Assessment
Proposed legislation Desk
The Proposed Legislation Desk is operated jointly by the Ministry of Economic
Affairs, the Ministry of the Environment (Environmental Assessment) and the Ministry
of Justice (Practicability and Enforceability assessment).
It oversees and checks the quality of the RIAs. There is a weekly meeting with the
representatives of these three Ministries.
Business Impact Assessment
Staffing
-Within the PLD 6 people work on the BIA’s
-2006: 205 BIAs were performed.
-50% of the BIA showed substantial effects for the business community
Business Impact Assessment
Type of regulation we assess
In a first instance, the BIA is for proposals for new laws, orders in council and
amendments to them
If thought necessary a BIA may also be performed on other forms of regulation.
Business Impact Assessment
When should an assessment be performed?
The BIA must be performed as early as possible, preferably as soon as
a basic draft of new legislation has been designed.
The outcomes of the assessment are most valuable precisely in the
phases in which it is still possible to alter modalities: so you can
choose the least burdensome alternative
Business Impact Assessment
Proces
The initiating ministry is responsible for the quality of the proposed legislation as
a whole.
It is also responsible for ensuring that the effects and side-effects of the legislation
are transparent by means of the performance of the BIA (and/or EA and P&E).
The ministry responsible must then submit the IA to the Ministry of Justice for the
legislative test of the proposed legislation, accompanied by the explanatory
memorandum that includes the outcomes of the assessment(s).
Business Impact Assessment
The results of an IA should be included into a separate paragraph in the explanatory
memorandum accompanying proposed legislation. This enhances the so needed
transparancy.
Business Impact Assessment
The Ministry of Justice will forward the BIA and/or EA for review to the
Ministry of Economic Affairs or the Ministry the Environment.
The Ministry of Justice will review the P&E itself.
Business Impact Assessment
The final part of the examination of the proposed legislation - both for the
legislative test and for the performed assessments - is a legislative report produced
by the Ministry of Justice that states approval or disapproval.
This report is sent –together with the proposed legislation – to the Council of
Ministers.
Political support
How did we get there?
Available?
Resources?
Knowledge?
Quality control?
SCM method
Infrastructure
Political
commitment
Incentives
Clear targets?
Ownership?
Stakeholder involvement?
Strong coordination?
Dept. involvement?
Countervailing power?
Dutch AB approach in a nutshell
€
€
€
o
o
o
o
o
o
o
SCM = hidden costs transparent
Budgetting AB creates scarcity
Compensation required
Interministerial framework
Ministerial ‘satellites’
Independent advisory board
Involvement stakeholders
Necessary condition: Quantitative SCM method
PxQ
Results:
o Sense of urgency
o Discipline to reach substantial AB reductions
o Visibility macro problem (€)
o Visibility pay-off (GDP)
o Transparency micro level (X-rays laws)
1…12
 Brian Huijts
 Regulatory Reformgroup
 The Netherlands
 B.B.W. [email protected]
Top 10 Dutch AB Legislation
Legislation
AB (in millions €) in the Netherlands
1. VAT
1,500
2. Financial accounting
1,500
3. Product & safety requirements
(labelling)
1,200
4. Tax on wages/salaries
700
5. National health service act
700
6. Employees' insurances
600
7. Act on conservation of nature
600
8. Income tax
600
9. Pricing of products
500
10. Working conditions
500
Total
8,400
Europe
Dissemination
Full scale application of SCM
Developing common EU-methodology
OECD Red Tape Scoreboard
(road freight sector)
SCM-Benchmarking

VAT

Permits

Transport
In preparation
+ Member States
+ 15 countries
Brussels
 Commission committed to regulatory reform:
 Withdrawal pending proposals
 Simplification
 Impact assessment
 Administrative cost measurement
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