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REDUCING ADMINISTRATIVE COSTS Regulatory Reformgroup Istanbul 20 / 11 /0 7

REDUCING ADMINISTRATIVE COSTS Regulatory Reformgroup Istanbul 20 / 11 /0 7. Institutional Capacitıes. Dutch Approach. Ambition the Netherlands. Quantitative target: 25% net How? Systematic measurement Budgetting AB per ministry Involvement of business sector

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REDUCING ADMINISTRATIVE COSTS Regulatory Reformgroup Istanbul 20 / 11 /0 7

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  1. REDUCING ADMINISTRATIVE COSTS Regulatory Reformgroup Istanbul 20/11/07

  2. Institutional Capacitıes

  3. Dutch Approach

  4. 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

  5. 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

  6. Involvement Stakeholders • Independent Advisory Board (ACTAL) • Interministerial unit (IPAL) • Website for complaints and suggestions • Involvement business sector

  7. Dutch AB Approach in a Nutshell € € € • SCM makes hidden costs transparant • Budgetting creates scarcity • Interministerial approach using satellites • Involve stakeholders • External advisory board

  8. Decision making proces and polıcy actıon

  9. 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.

  10. 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

  11. 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.

  12. 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

  13. 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).

  14. The results of an IA should be included into a separate paragraph inthe explanatory memorandum accompanying proposed legislation. This enhances the so needed transparancy. Business Impact Assessment

  15. 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.

  16. 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.

  17. Political support

  18. How did we get there? SCM method Infrastructure Available? Resources? Knowledge? Quality control? Strong coordination? Dept. involvement? Countervailing power? Political commitment Incentives Clear targets? Ownership? Stakeholder involvement?

  19. Dutch AB approach in a nutshell € € € • SCM = hidden costs transparent • Budgetting AB creates scarcity • Compensation required • Interministerial framework • Ministerial ‘satellites’ • Independent advisory board • Involvement stakeholders

  20. Necessary condition: Quantitative SCM method P x Q Results: • Sense of urgency • Discipline to reach substantial AB reductions • Visibility macro problem (€) • Visibility pay-off (GDP) • Transparency micro level (X-rays laws) 1…12

  21. Brian Huijts • Regulatory Reformgroup • The Netherlands • B.B.W. Huijts@Minez.nl

  22. Top 10 Dutch AB Legislation

  23. Europe

  24. 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

  25. Brussels • Commission committed to regulatory reform: • Withdrawal pending proposals • Simplification • Impact assessment • Administrative cost measurement

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