Regulation minister to seek Cabinet's approval to introduce planned legislation on 19 May
David Seymour, regulation minister, has announced that a detailed proposal to pass the Regulatory Standards Bill has progressed through Cabinet.
The planned legislation will obligate government agencies to review their regulatory systems, Seymour said. It will require the responsible government minister to justify a deviation from principles if inconsistencies are discovered and will require politicians and officials to answer certain questions before restricting individual freedoms.
According to Seymour, these questions include: “What problem are we trying to solve? What are the costs and benefits? Who pays the costs and gets the benefits? What restrictions are being placed on the use and exchange of private property?”
The proposed legislation offers a mechanism for recourse via the Regulatory Standards Board. Seymour said this tribunal will:
consist of those versed in regulatory economics
handle appeals by people impacted by bad laws
issue non-binding recommendations on whether a law was well-made
ensure the publication of its findings, reasons for any inconsistency, and relevant documents
The ACT-National Coalition Agreement contains a commitment to pass a Regulatory Standards Act. Seymour said he plans to take the proposed bill to Cabinet on 19 May and request approval to introduce it.
“New Zealand's low wages can be blamed on low productivity, and low productivity can be blamed on poor regulation,” Seymour said. “To raise productivity, we must allow people to spend more time on productive activities and less time on compliance.”
The proposed Regulatory Standards Bill aims to:
ensure that the principles of good law-making and economic efficiency form the basis of regulatory decisions
codify the principles of good regulatory practice for existing and future regulations
make the system transparent
holds regulators accountable
introduce the same level of discipline to regulation that the Public Finance Act 1989 imposes on public spending, with the Ministry for Regulation playing a role similar to the Treasury’s role
“In a nutshell: If red tape is holding us back, because politicians find regulating politically rewarding, then we need to make regulating less rewarding for politicians with more sunlight on their activities,” Seymour said. “That is how the Regulatory Standards Bill will help New Zealand get its mojo back.”
Broadly, the planned Regulatory Standards Bill seeks to make lawmaking transparent and principled, improve the quality of rules over time, help improve the country’s productivity, and raise wages, Seymour said in the government’s news release.
“The law doesn’t stop politicians or their officials making bad laws, but it makes it transparent that they’re doing it,” Seymour said. “It makes it easier for voters to identify those responsible for making bad rules.”
