Reducing Red Tape Within Reducing Red Tape Within GovernmentGovernment

Rex Deighton-SmithRex Deighton-Smith

OECD Meeting of Senior OECD Meeting of Senior Budget OfficialsBudget Officials

Vienna, 2 June 2008Vienna, 2 June 2008

The red tape problem The red tape problem

Problem analysis Lack of knowledge of actual requirements Lack of knowledge of actual requirements

(“myths”)(“myths”) Limited understanding of costs of internal Limited understanding of costs of internal

regulatory requirementsregulatory requirements Adoption of unduly risk-averse policiesAdoption of unduly risk-averse policies

Major areas of concern identified:: Government wide:Government wide: Procurement & recruitmentProcurement & recruitment Internal to agencies: chief executive’s financial Internal to agencies: chief executive’s financial

delegations, chief executive’s delegations, chief executive’s instructionsinstructions

Solutions implementedSolutions implemented

Adoption of specified processes for Adoption of specified processes for developing new rules, including:developing new rules, including: problem analysis, problem analysis, identifying options, identifying options, BCA, BCA, stakeholder consultation, stakeholder consultation, independent adviceindependent advice

Regular reviews requiredRegular reviews required Correcting mythsCorrecting myths

Adoption of a “myths vs realities” Adoption of a “myths vs realities” frameworkframework

Comments on the programmeComments on the programme

New processes closely reflect New processes closely reflect regulatory reform best practicesregulatory reform best practices

Underlying issue of risk aversion also Underlying issue of risk aversion also a theme re: external regulationa theme re: external regulation

Potential to “optimize” internal Potential to “optimize” internal regulation is high:regulation is high: costs/benefits are more readily costs/benefits are more readily

determineddetermined Potential gains also seem substantialPotential gains also seem substantial

Due to the scale of govt procurement & Due to the scale of govt procurement & recruitment operationsrecruitment operations

Broader application?Broader application?

The Australian reform programme The Australian reform programme appears to be a new innovationappears to be a new innovation

However, the problems identified are However, the problems identified are likely to be widely experiencedlikely to be widely experienced

Adopting a system based process is Adopting a system based process is soundsound

Potential gains from change are largePotential gains from change are large May be merit in a review of:May be merit in a review of:

Scale of problemsScale of problems Other programmes in this areaOther programmes in this area