Report: Panel on Business Compliance Costs
1 July 2003 Media Statement
Report-back on implementation of recommendations by the Ministerial Panel on Business Compliance Costs
The Government has made excellent progress in implementing recommendations of the Ministerial Panel on Business Compliance Costs, Minister for Small Business John Tamihere says.
Mr Tamihere today released a progress report on implementation of the recommendations of the Ministerial Panel on Business Compliance Costs.
The ministerial panel was appointed by Commerce Minister Paul Swain in 2000 as a key plank in the government’s compliance cost reduction programme. Having sought the views of businesses throughout the country, the panel submitted 162 recommendations to the government on ways to reduce compliance costs for business.
In December 2001, the government issued its response to the panel’s recommendations, Striking the Balance, in which it agreed (at least partially or in principle) to 131 of the Panel’s proposals.
More than 80% of these proposals are now implemented or their implementation is underway. The Government is confident that all the most significant recommendations have been implemented, capturing at least 95% of potential benefits in terms of compliance cost reduction.
The initiatives and projects undertaken in response to the panel’s recommendations range across numerous government agencies and many pieces of legislation, such as employment relations, health and safety, accident insurance, local government and government statistics. Key initiatives include:
ONE-STOP BUSINESS PORTAL
One of the
prominent themes of the panel’s recommendations was to
increase the accessibility of government services and
information on compliance requirements via e-technology.
One of the main initiatives in this area is the government's
sponsorship of the setting up of a one-stop business
portal.
Led by Industry NZ, this web-based portal will
allow access to business services across government (e.g.
IRD, Department of Labour, ACC, Companies Office) as well as
providing private sector information. The first stage of the
portal is due to go ‘live’ this month.
RMA-RELATED INITIATIVES
A number of initiatives have made it easier
for businesses dealing with Resource Management Act
issues:
- Additional funding for the Environment Court,
and collaboration between the Ministry for the Environment
and the Environment Court, mean significant reductions in
Environment Court backlog and delays are being achieved.
Introduction of limited notification will curb frivolous and
vexatious objections.
- With further funding the Ministry
for Environment has also implemented a number of projects
that will improve the resource consent process. For example,
the Ministry is moving to establish a scheme to train and
accredit local councillors and independent commissioners
involved in making decisions on resource consent
applications. It is also developing guidance on case
management and charging practices for iwi and hapu
authorities.
Implementing the panel's recommendations was just part of the government's wider programme of reducing compliance costs and assisting business, Mr Tamihere said. As part of its wider programme, the government is introducing related initiatives, including:
TAX SIMPLIFICATION
The government is progressing a tax
simplification programme addressing the tax issues of small
to medium enterprises. Measures include:
- A discussion
document proposing tax simplification measures will be
issued later this year. The proposals, such as frequency of
tax payment and better aligning tax payment with the income
earning process, address areas of concern raised by the
panel.
- A key proposal in the discussion document is
that the government will encourage employers to use a
commercial payroll intermediary by covering the
intermediary's costs for the first five employees.
MEETING THE NEEDS OF SMALL-MEDIUM BUSINESS
- The appointment
process of a Small Business Advisory Group is in its final
stages. The eight members of the advisory group will be
drawn from the business community and will have experience
running or working with small businesses. The group will
advise Ministers on issues and policies affecting small
business, including compliance costs.
- A new Small
Business Directorate recently established within the
Ministry of Economic Development will work closely with the
advisory group and guide issues on small-medium
businesses.
- In February 2004 the government will host
an SME (small-medium enterprise) Summit, along with a series
of regional summits, to help define the needs of SMEs and
the government’s role in relation to those
needs.
REGULATORY IMPACT ANALYSIS
Every regulatory proposal is now subject to a regulatory impact analysis to ensure a robust and transparent process around business compliance costs.
Mr Tamihere said he was pleased to
see prompt progress being made towards implementing the
panel's recommendations.
"Creating conditions under which New Zealand businesses can be innovative and operate most effectively remains a key priority for this government. The progress being made by the government on implementing the panel's recommendations will ensure that compliance cost barriers to innovation and effectiveness will be removed wherever possible."
A full progress report on implementation of the panel recommendations is available at the Ministry of Economic Development website – www.med.govt.nz.
A media briefing on the report-back will be held in meeting room 6.31, Bowen House, Tuesday, July 1, 1.15pm.
ENDS