REDUCING ADMINISTRATIVE COSTS

Regulatory ReformgroupIstanbul 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

Political commitment

SCM method Infrastructure

Incentives

Clear targets?Ownership?

Stakeholder involvement?

How did we get there?

Available?Resources?Knowledge?Quality control?

Strong coordination?Dept. involvement?Countervailing power?

Dutch AB approach in a nutshell

o SCM = hidden costs transparento Budgetting AB creates scarcityo Compensation required o Interministerial frameworko Ministerial ‘satellites’o Independent advisory boardo Involvement stakeholders

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Necessary condition: Quantitative SCM method

Results:o Sense of urgencyo Discipline to reach substantial AB reductions o Visibility macro problem (€)o Visibility pay-off (GDP)o Transparency micro level (X-rays laws)

P x Q

1…12

Brian Huijts

Regulatory Reformgroup

The Netherlands

B.B.W. Huijts@Minez.nl

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