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CONFERENCE on R egulatory I mpact A ssessment Ankara - 19, 20 and 21 April, 2006 Mr. TOM FERRIS. “Five Easy P hase s” 1. General Overview of RIA 2. Origins of RIA in Ireland 3. How Ireland does its RIA 4. Consultation 5. Benefits of RIA. 1. General Overview of RIA. Why Have RIA ?.
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CONFERENCE on Regulatory Impact Assessment Ankara - 19, 20 and 21 April, 2006 Mr. TOM FERRIS
“Five Easy Phases” 1. General Overview of RIA2. Origins of RIA in Ireland3. How Ireland does its RIA4. Consultation5. Benefits of RIA
Why Have RIA ? • To clarify justification for Regulation • To assess alternatives (taxes, grants or fines) • To identify all costs and benefits • To enhance law-making quality • To improve governance systems • To improve public service outputs • To enhance consultation • To inform EU negoiations • To try and ensure “no surprises”
What is Regulatory Impact Assessment? • A framework for assessing the likely effects of a proposed regulation, or of regulatory change • A detailed assessment of the impacts, side effects and costs of regulation • Includes structured consultation with stakeholders and citizens • A discipline to be applied at early stage in the regulatory cycle – before Government decides to regulate • Not a substitute for decision-making but can help to inform policy decisions
RIA Can Help Identify… • All relevant costs and benefits • Considers scope for ‘no policy change’ • Alternative forms of regulation • Alternatives to regulation • Alternative implementation and design options • Relevant proposals that merit examination, while recognising that proportionality must be taken into account
RIA allows us to….. • Encourage a more structured and explicit examination of expected costs and benefits • Highlight importance of consultation with stakeholders • Encourage earlier focus on enforcementand compliance issues • Who will enforce the regulations, what are the compliance targets? • Introduce performance indicators for regulations, so that we can know if regulations are working well (or not working well) • Respond to EU legislative proposals....hard work contınues wıth EU membershıp – wıth new EU regulatory proposals
RIA for All ? • RIA can help to improve thequality of governance through increasing the use of evidence-based decision-making • RIA can help by enhancing the transparency and legitimacy of the regulatory process • But any introduction of RIA must first take into account local existing procedures and practices • There may be need for adaptation and adjustment to current structures and processes
Critical Questions for RIA:To Enforce and Comply ? • Are proposals enforceable? • e.g. resources • Who will enforce them? • How will consistency and accountability be ensured? • What are compliance targets? • Do benefits justify compliance costs?
Genesis of Regulatory Impact Assessment in Ireland • Influence of OECD and EU on RIA in Ireland • “Delivering Better Government” (Irish Government 1996) • Public Service Modernisation Act 1997 • OECD, Regulatory Reform in Ireland, 2001 • “Regulating Better” (Irish Government 2004) • Government committed to RIA having started with Five Pilot Projects – Cabinet 2005 Decision
National Implementation Milestones in Ireland 2001 • OECD Regulatory Review of Ireland 2002 • Draft Regulatory Impact Analysis (RIA) model developed 2004 • Publication of Government White Paper, Regulating Better • RIA Pilot Project 2005 • Publication of RIA Report & Consultation Guidelines
White Paper Regulating Better January 2004 Six Principles of Better Regulation Adopted Action Programme for Better Regulation
Irish Consultation Guidelines • Key Element of Regulatory Impact Assessment (RIA) • Government White Paper ‘Regulating Better’: Action Plan 5.1 Procedures and Guidelines will be developed to promote better quality public consultation and to outline a full range of consultation options. Consideration will be given to the mechanisms for ensuring balanced coordination procedures, taking care to consider the particular requirements for ‘not-for-profit’ groups
Government Secretariat All Mınıstrıes Mınıstry of Finance Offıce of Prime Minister and Finance Mınıstry RIA check on Memos to Government RIAs undertaken Training and technical advice Reality checks on robustness of RIAs Ireland’s RIA Structure
Mandatory RIA in Ireland • Before recommending regulations, policy review groups should consider the potential for alternative approaches. This may include preparing a RIA • When Memo brought to Govt seeking approval for General Scheme of a Bill, RIA to be attached to Memorandum • RIA to be applied to draft EU Directives once they have been published by the Commission • RIAs to be published subject to FOI exemptions
How to do Screening RIA ? Screening RIA to be applied to: • All primary legislation involving • Changes to regulatory framework, • Significant Statutory Instruments • Draft EU Directives or Regulations
How RIA is done in Ireland Two phased approach: • Screening RIA • Applied to all primary legislation involving changes to regulatory framework, significant Statutory Instruments and draft EU Directives and EU Regulations • Full RIA • Only conducted where Screening RIA suggests significant impacts (six criteria identified above) or significant costs (initial cost of €10 million or cumulative costs of €50 million over 10 years)
And Screening RIA involves ? • Description of policy context, objectives & policy options/choices • Identification of cost, benefits and other impacts of options • Informal consultation including Government Departments, consumer and other interests • Description of how enforcement and compliance will be achieved • Review – how will performance of regulations be measured?
How to do Full RIA ? • Full RIA only conducted where Screening RIA suggests: • Significant impacts (six criteria identified) • Significant costs (initial cost of €10 million or cumulative costs of €50 million over 10 years) • International experience suggests Full RIA in 10-15% of cases
And Full RIA involves ? • More detailed analysis of options • More in-depth analysis of impacts including in some cases CBA • Formal consultation • Summary of pros and cons of each option and identification of a recommended option where appropriate
What Results in Ireland • Draft RIA model developed in 2001 • White Paper Regulating Better committed to piloting RIA prior to its introduction in all Government Departments/Offices • Five Departments agreed to pilot RIA • A Steering Group formed and economic assistance provided • This piloting has given the first results
Pilot Mınıstrıes/Offices • Health and Children • Medical Practitioners Bill • Enterprise, Trade and Employment • Export Controls Bill • Office of the Revenue Commissioners • Betting Duty Regulations • Justice, Equality and Law Reform • Coroners Bill • Environment, Heritage and Local Government • Draft EU Groundwater Directive
Are Lessons Being Learned ? Yes - many RIA lessons being learned : • More structured and explicit focus on the objectives behind regulations – with identification of problems being addressed • Identification and analysis of alternative options for achieving policy goals • Recognition of difficulties of analysing and quantifying the costs associated with regulations
Are There Wider Benefits ? • Can help address cross-cutting issues • Can identify unintended effects as well as alternative solutions • Demonstrates that RIA can help inform Ireland’s negotiating position and transposition of EU Directives
Gathering Data / Information1. In-house expertise2.Commission research 3.Dedicated RIA Training 4.Networking for RIA 5.Data /“best practice”6. Other (e.g. Focus groups/questionnaires)
RIA Needs to Have Consultation, Consultation and Consultation • To assist the decision-making process • To contribute to evidence-based policy making • To help identify possible alternatives to regulation • To strengthen focus of policy makers on the needs of the public and end-consumer
Phases of the Consultation Process • Planning • Execution • Analysis & Evaluation – the BACK-CHECK
Consultation means.. • Structured public engagement with those whose views are to be sought • Providing informationto the key audience on the purpose and subject of the consultation • e.g. a policy initiative, a regulatory change, a legislative proposal or a service delivery • Seeking, receiving, analysing and responding to feedback from the key audience • It is important to differentiate between • Ongoing consultative mechanisms (involving standing committees, fora or groups) and • Once-off consultation exercises
Plan for Consultation • Decide what is purpose of consultation • What do you want to achieve / questions you want answered • Who to consult and timeframes? • RIA can help to identify all stakeholders • How to make stakeholders aware? • Are outside experts or consultants required? • Compliance with legal obligations • Data Protection, Freedom of Information, Equal Status etc.
Different Methods of Consultation • Written Consultations • Questionnaire-based survey • Internet and use of IT tools • Face-to-Face Interviews • Use of Focus Groups • Public Meetings
But we ın Public Sector areare doıng... • Have a more structured and explicit examination of expected costs and benefitsof regulation • Have important consultation with stakeholders • Have an earlier focus on enforcement and compliance issues - - who will enforce the regulations, what are the compliance targets? • Heraldıng the introduction of performance indicators for regulations, so that they can show if the regulations are working well (or not working well) • Gıvıng an early response to EU legislative proposals
Feedback and Review are Critical • Give feedback to key players and those who participate • Publish and acknowledge submissions made (taking account of data protection etc.) • Review the consultation process
Challenges of RIA • Yes, many elements of RIA already there • But traditional ways will be challenged • Key players will feel some discomfort! • And yet if RIA is well explained there can be real benefits for the main players and in the public interest
Benefits of Guidelines • Best Practice • Provoke ideas on alternative methods of consulting • Increase awareness among groups and individuals who wish to participate in consultation, on what to expect
Critical success factors • High level administrative and political support • Central Support from Prime Minister’s Department • Awareness-raising and training • Development of RIA network for sharing of experience/best practice • Ongoing liaison with EU colleagues especially EU Directors of Better Regulation • Learning from doing – RIA very much an iterative process
RIA adds value… Introduce Regulatory Impact Assessment • Existing Formal • Systems of Evaluating • Proposals and • Plans Existing Systems of Consulting with Stakeholders Existing Processes Training / Resources
Mınıstry Environment, Heritage and Local Government Draft EU Groundwater Directive • Framework to protect surface+groundwater • EU : Nıne Member States doıng theır RIAs • Ireland : Cross-sectoral Team (mInıstry + EPA) • Objectıve : ....to protect and control water pollutıon........
Mınıstry Environment, Heritage and Local Government Draft EU Groundwater Directive • Compulsory Dırectıve...scope to adapt • (- and+) Economıc, envıronmental and socıal • Very technıcal and very complex • Team debated overall fındıngs and conclusıons- not ınto deep detaıl • Benefıt of CREATIVE BRAINSTORMING
Mınıstry Environment, Heritage and Local Government Draft EU Groundwater Directive • BENEFITS • Qualıtyof lıfe – now and ın future • Less Water Treatment Plants (and so less costs) • Better farm practıce (less pollutıon) • Better ındustry practıce
Mınıstry Environment, Heritage and Local Government Draft EU Groundwater Directive • COSTS • More monıtorıng • More reports • More enforcement • More complıance (farms, mınıng and roads constructıon and maıntenance)
Mınıstry Environment, Heritage and Local Government Draft EU Groundwater Directive • Thıs RIA for Ireland has meant.......... • Clarıfıcatıon of ıssues • Narrowed ınterpretatıon • Set agenda for sectoral actıons e.g. Rıver Basın Management Plans). • Identıfıed mechanısms for revıew • General lessons for tacklıng up-comıng EU DIRECTIVES
Websıteof Offıce of Prıme Mınısterwww.irlgov.ie(Department of Taoıseach)and look at ”BETTER REGULATION”