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Seminar on Regional Capacity-building : A Presentation on Regulatory Impact Analysis in Ireland. Tunis, Tunisia, 15 Feb. 2007 Tom Ferris Economist Ireland. Content of Presentation.
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Seminar on Regional Capacity-building :A Presentation on Regulatory Impact Analysis in Ireland Tunis, Tunisia, 15 Feb. 2007 Tom Ferris Economist Ireland
Content of Presentation • What is RIA ? • Where does RIA come from? • Why have RIA ? • How is RIA carried out ? • Are there RIA results available ? • Who should be consulted on RIA ? • Whither RIA ?
(1) What is Regulatory Impact Analysis? • It is a framework for assessing the likely effects of a proposed regulation, or of regulatory change • It involves assessment of the impacts, side effects and costs of regulation • It includes structured consultation with stakeholders and citizens • It should be applied at early stage in the regulatory cycle – preferably before Government decides to regulate • It is not a substitute for decision-making but can help to inform policy decisions
RIA Can Help Identify… • All the 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
(2) Whence RIA 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) • Cabinet 2005 Decision – RIA on all new regulations • “Towards 2016”, 10-Year Partnership Agreement
White Paper, ‘Regulating Better’, Dublin, January 2004 Six Principles of Better Regulation Adopted Action Programme for Better Regulation www.betterregulation.ie
(3) Why Have RIA ? • To clarify justification for Regulation • To assess alternatives (taxes, grants or fines) • To identify costs and benefits • To facilitate consultation • To ensure there is a full awareness of what enforcement will be required • To alert those who will be affected of the compliance costs • To ensure “no surprises”
RIA : Need to address Enforcement and Compliance • 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?
(4) How to do RIA ? Two phased approach used in Ireland: • 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)
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
And Screening RIA involves ? • Description of policy context, objectives and 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 the Screening RIA suggests: • Significant impacts on Economy (listed by the Irish Government in www.betterregulation.ie • Significant costs (initial cost of €10 million or cumulative costs of €50 million over 10 years) • International experience suggests Full RIA in only 10-15% of cases
And Full RIA involves ? • More detailed analysis of options • More in-depth analysis of impacts including in some cases Cost Benefit Analysis • Formal consultation, not informal • Summary of pros and cons of each option and identification of a recommended option where appropriate
(5): What Results ? • 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 gave the first RIA results in 2005
Pilot Departments/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
Tunis Conference15 february 2007 • A Simple RIA • On • “FITNESS” • Of Delegates
Tunis Conference Results of Simple RIA • Objective : To become fitter • Alternatives: A lot; A little; No exercise • Costs: Energy used • Benefits: Better blood circulation • Consultation: Yes we consulted • Compliance: You all complied • Feedback: Good feedback
(6) Consultation a Priority • 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
Government Commitment to Consult under RIA • Government’s 2004 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 www.betterregulation.ie
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.
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
(7) Whither RIA ? • RIA can further 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 the 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
For RIA to succeed… • High level administrative and political support • Development of RIA network for sharing of experience and best practice • Ongoing liaison with EU colleagues especially Directors of Better Regulation • ‘Learning by doing’ – RIA very much an iterative process • Awareness-raising and training very important • Ensure sufficient resources
Challenges for 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
RIA Publications from Department of the Taoiseach • RIA Guidelines : How to conduct a Regulatory Impact Analysis (2005) • A Reporton the Introduction of Regulatory Impact Analysis (2005) • Reaching out: Guidelines on Consultation for Public Sector Bodies (2005) • www.betteregulation.ie