Business costs face review

The Government said yesterday it was taking a four-pronged approach to lowering compliance costs for businesses that included determining the costs imposed by all new legislation.

It would establish a panel of private sector people - mainly from small to medium-sized enterprises - to make recommendations on reducing compliance costs on existing regulations.

The panel, to be appointed by July 1, 2001, would report to Commerce Minister Paul Swain and Finance Minister Michael Cullen.

Mr Swain said in a statement that he had instructed officials to report on implementing recommendations made last November by Parliament's commerce select committee.

They included establishing an officials' committee to oversee a compliance cost reduction programme within Government.

The minister also said test panels of industry representatives would be set up to audit the likely compliance costs and workability of proposed new regulations on their industries.

An implementation plan for the panels was expected by the end of November.

A vital part of the strategy was to publish business compliance cost statements as part of all new legislation, Mr Swain said.

"This way, Government will be clear about the compliance costs it is imposing on business and will give business the opportunity to have a say on those costs as part of the select committee process."

This was designed to put "the real costs of Government legislation out in the open."

The Government's aim was to lower compliance costs over time so business people could spend their time and money doing what they did best - running their businesses.

"Compliance costs are a critical issue for businesses," Mr Swain said.

"It is an issue which is raised with me every time I am in a business audience and the Government is now indicating it is tackling this issue."

- NZPA