NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Budget 2025
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Economy

Why cutting red tape is so difficult – Richard Prebble

By Richard Prebble
NZ Herald·
29 Apr, 2025 10:00 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Act leader David Seymour had a win last week after Cabinet approved the Ministry for Regulation's proposal to rewrite pre-school regulations. Photo / Mark Mitchell

Act leader David Seymour had a win last week after Cabinet approved the Ministry for Regulation's proposal to rewrite pre-school regulations. Photo / Mark Mitchell

Opinion by Richard Prebble
Richard Prebble is a former Labour Party minister and Act Party leader. He holds a number of directorships.
Learn more

THREE KEY FACTS

  • David Seymour‘s Ministry for Regulation’s proposal to rewrite pre-school regulations was approved by Cabinet.
  • The review found current regulations outdated and burdensome.
  • The new regulations aim to reduce costs and increase quality.

David Seymour had a win last week.

Cabinet approved his Ministry for Regulation’s proposal to rewrite the regulations covering pre-school centres.

In December, the ministry published the Regulatory Review of Early Childhood Education, which found that the regulations are “outdated”, “confusing” and “are imposing undue compliance burdens”.

Advertisement
Advertise with NZME.

To get a licence, children must be unable to exit centres unsupervised. The fire regulations require an exit to be unlocked so children can leave unsupervised.

Regulations capable of being followed are important. About 62% of preschool-aged children attend preschool, about 191,000 kids.

A shortage of places means 47% of the 1941 providers have a waiting list. Many children are unable to attend preschool because there is no place.

Making it cheaper and easier to set up and run an early childhood centre will result in more places.

Advertisement
Advertise with NZME.

The new regulations are a practical test of Act policy – that all regulations should pass a cost/benefit test.

The report found the sector needs to be regulated because parents cannot judge a centre’s safety, the care standards or the learning.

Many regulations are not needed, such as requiring the centres to hold children’s immunisation records already held by the health sector.

The cost of unnecessary paperwork is significant. The penalty for failure to complete paperwork is closure.

The review concluded that new regulations based on cost/benefit analysis would mean fewer regulations, lower costs and higher quality care.

The review is a template for reviewing all regulations, but it is too little and takes too long.

The current regulations have been in place since 2008. Reviewing the regulations is relatively inexpensive, and the benefits significant, so why wait 17 years?

There is no incentive. New regulations are always criticised and can be career-ending.

Advertisement
Advertise with NZME.

One day, there will be a fire in a preschool. A child will wander out through an unlocked door and be hurt. If the civil servants and ministers have not changed the regulations then they will not be held at fault.

This is why I never changed safety recommendations.

While the sector has widely praised the proposed reforms, those who benefit will take it for granted and those who lose will never forgive.

The union is opposed. The recommendation to make it easier to get qualified will be resented by those who qualified the hard way.

Politicians want to be able to respond to any issue by passing a law, even if the costs outweigh any benefit. This coalition is no exception.

Would the ban on gang patches pass a cost/benefit test? There must be a significant benefit in organised crime self-identifying.

Bad laws are easy to pass. Cost/benefit analyses takes time.

The new preschool regulations require empowering legislation. It will be after the next election before the new regulations come into effect. By then, another generation of preschoolers will have graduated.

The ministry has a programme of regulatory reviews ranging from hairdressing to telecommunications.

It is unlikely any review will result in better regulations before the election.

The coalition passed 19 bills under urgency in one day. The Department for Regulations in three years will have reformed just one set of regulations.

To cut red tape, more is needed.

If department heads’ bonuses were linked to the reduction in red tape, the civil service would discover that many regulations are not needed.

When pay was linked to departmental numbers, the general manager of the railways was the second-highest-paid civil servant.

There were 24,000 railway workers and the railways lost $1 million a day. When the general manager’s pay was linked to efficiency, railways needed just 6000 people to haul four times more freight, at half the freight rate, and make a profit.

US President Donald Trump in his first term did successfully reduce red tape. Trump made reducing red tape every minister’s priority. He signed an executive order that for every new regulation, two had to be repealed.

If Prime Minister Christopher Luxon’s action plans made reducing red tape the priority and adopted two regulations repealed for every new regulation, then red tape would be reduced.

The coalition Government’s Q2 Action Plan has over twice the number of proposed new laws as repeals.

The action plan does include the introduction of Act’s Regulatory Standards Bill. The bill will require that all laws, not just regulations, meet a set of principles for “responsible regulation”.

The principles included the rule of law, protecting liberties, the taking of property, setting taxes, fees and levies, the role of courts, and having greater benefits than costs.

A Regulatory Standards Bill would make a difference. The bill would limit the unbridled power to make bad laws and create red tape.

Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Latest from Economy

Premium
Technology

Callaghan shows start-up team the door, Auckland Mayor makes tech grab

20 May 03:01 AM
Premium
Business|markets

Two private equity firms reportedly circling Spark

19 May 09:13 PM
Premium
Tax

PM positive on providing tax support for firms that invest in tech and machinery

19 May 07:00 PM

The Hire A Hubby hero turning handyman stereotypes on their head

sponsored
Advertisement
Advertise with NZME.

Latest from Economy

Premium
Callaghan shows start-up team the door, Auckland Mayor makes tech grab

Callaghan shows start-up team the door, Auckland Mayor makes tech grab

20 May 03:01 AM

Budget day is desk clear-out day for Callaghan's commercialisation team.

Premium
Two private equity firms reportedly circling Spark

Two private equity firms reportedly circling Spark

19 May 09:13 PM
Premium
PM positive on providing tax support for firms that invest in tech and machinery

PM positive on providing tax support for firms that invest in tech and machinery

19 May 07:00 PM
Premium
New study out on Kirkpatrick plan for K Rd, Colliers moves Westgate properties: Property Insider

New study out on Kirkpatrick plan for K Rd, Colliers moves Westgate properties: Property Insider

19 May 05:00 PM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP