CONFERENCE on Regulatory Impact Assessment Ankara - 20 April, 2006

1. CONFERENCE onRegulatory Impact AssessmentAnkara - 20 April, 2006 Mr Piotr Serafin &Ms. Malgorzata Kaluzynska

2. Outline • Background to RIA in Poland • When to undertake a RIA? • What are the main steps to be taken when undertaking a RIA? • Who should be consulted and at what stages of the process? • What data is needed? What are the best sources for compiling relevant data?

3. Background and context

4. Background to RIA in Poland 2000 • Polish government decided to submit Poland to an OECD regulatory review • Interministerial Regulatory Quality Team was established: • to serve as an advisory body to the PrimeMinister and the Council of Ministers • to co-operate with the OECD team during the review • to prepare draft documents on regulatory reform • to promote the establishment of RIA 2001 Legal framework for RIA was established 2003 Methodological foundations for RIA were adopted

5. Legal framework for RIA in Poland Resolution of the Council of Ministers amendingthe operating rules of the Council of Ministers (September 2001) Amendment to the Law on the Council of Ministers (December 2001) Methodological Foundations for RIA adopted by Council of Ministers in April 2003 Government Legislative Center is responsible for coordinating preparation of assessments of the social and economic impact of government draft legal acts Regulationof the Prime Minister of June 2002on the Rules of the Legislative Technique Members of the Council of Ministers are required to conduct RIA prior to the preparation of government drafts of regulatory acts

6. When to undertake RIA?What are the main steps?

7. When to undertake a RIA? • RIA should be prepared at the earliest possible stage • Applies to both primary and secondary laws • RIA is fully integrated into the legislative procedure

8. Before decision to develop a bill is taken… Pre-RIA phase Section 1, Subsection 1, of the Regulationof the Prime Minister of June 20, 2002on the Rules of the Legislative Technique

9. Once a decision to develop a bill is taken… Pre-RIA phase • Section 1, Subsection 2, of the Regulation of the Prime Minister of June 20, 2002on the Rules of the Legislative Technique • Section 9, Subsection 1 of the Resolution of the Council of Ministers amendingthe operating rules of the Council of Ministers

10. Step 1 Draft regulatory act Justification including RIA List of entities consulted attached

11. Step 2

12. Step 3

13. Step 4 Organises inter-ministerial consultations Draft regulatory act, justification including RIA + GLC opinion on RIA

14. Scope of RIA Depending on: - the subject - the coverage of a regulation - the feasibility and the costs of obtaining reliable results the body proposing the regulation determines the method and the thoroughness of the assessment so as to avoid unnecessary or incommensurable costs.

15. Minimumscope of RIA • Indicates entities affected • Presents outcome of consultations • Indicates impact of draft regulation on: • General Government Budget, including Cental Government Budget and Local government budgets • Labour market • Internal and external competitiveness • Regional development • The scope of the assessment should be extended if the subject or the coverage of the regulation so requires Section 10, Subsection 6 of the Resolution of the Council of Ministers amendingthe operating rules of the Council of Ministers

16. Form of RIA RIA shall be presented synthetically in a separate part of the justification of the draft regulation Section 10, Subsection 6 of the operating rules of the Council of Ministers To ensure the transparency and the editorial cohesion of the entire justification: - Avoid repetitions (e.g. the presentation of the financial impact in both the justification and the RIA) -RIA as a separate document only if it is complex and attached to very complex regulatory acts; -Do not present the course and the results of inter-ministerial consultations. Methodological Foundations for RIA adopted by Council of Ministers In April 2003

17. Who should be consulted and at what stages of the process?

18. Who should be consulted and at what stages? • A rich variety of private and public actors should be usually consulted: • potential target groups of the regulatory option considered • public bodies • trade unions • employers’ organisations • business organisations • professional organisations • local governments • consumers • ecologist organisations etc.

19. Consultations – legal provisions If feasible, take place at the earliest possible stage in the process of deciding on how to achieve the set objective Timing As wide as possible. Consultations with social partners (required by the relevant laws)constitutes a minimum Special allowance for groups of entities to be affected by theproposed regulatory act. Scope An essential way of seeking an opinion is to post thedraftregulatory act on Ministry website The results of the social consultations should be presented in the RIA after their completion Results The absence of social consultations always requires justification (by providing suitable information in the RIA). • Methodological foundations of RIA, May 2003

20. Consultations – practice Absence of time rules governing external consultation allows the minister to determine how much time is allocated to the responses Timing Practice shows that usually public cn takes place parallel to inter-ministerial consultation If no statutory obligation the decision which non-state actors should be consulted is discretionally taken by the minister Scope Results of consultations has to be described as part of RIA but minister decides on information it supplies Results Results of consultations has to be described as part of RIA but minister decides on information it supplies • Methodological foundations of RIA, May 2003

21. Consultations – critics on the part of NGOs Not enough time allocated for partners Lack of clear objective or inapproriate objective Lack of information on the results of consultations Limited scope of partners invited to consultations Lack of interest on alternative points of views Obywatele współdecydują - Przewodnik po partycypacji http://www.npr.ngo.pl/strona/103632.html?context=1

22. What data is needed? What are the best sources for data collection?Transport sector case studies

23. Studies carried out in the road transport sector • 2001 RIA on social legislation and financial standing at the stage of accession negotiations • 2004/2005 Identification of the administrative burdens on laws regulating establishment of busniess activites • 2005 Qualitative social survey on the preception of the regulatory barriers, other sources of the burdens and impact of all barriers on the competitivness of the sector

24. Data collection – methodological foundation of RIA recommendations • Information resources in the databases of bodies proposing new regulations • Statistical information of the Central Statistical Office (GUS) • surveys of household budgets • information compiled by enterprises on the basis of their internal documentation The scope of surveys and the dates and forms of their release are set forth on an annual basis • data from enterprises and other business units. • Questionnaire surveys covering a wide spectrum of enterprises or selected units that can be called “typical enterprises” or “typical units”

25. Data collection - RIA study • Questionnaires • Verification of the draft questionnaries by the representatives of the sector • central and regional organisations • Ministry of Transport in-house expertise • Verification of the initial findings by the representatives of the sector • Case studies on 16 specific companies (selected on the bases of the structure of the sector): • To analyse the knowlegde of the incoming legislative changes • To identify the best possible compliance paths

26. Data collection – administrative burdens • Individual in-depth interviews on the chosen sample • Sample of 14 typical companies (median not average) in: • freight and passanger transport companies • SME and big companies • Time frame: 6 months • Cost: 6000 Euro

27. Data collection – social survey • Individual in-depth interviews on the chosen sample • Sample: • Owners of the small and medium size freight transport companies • 4 voievodships and 20 interviews • 1 interview in the Assossiation of the International Road Transport Hauliers • 1 interview in the Office for the Support of International Transport • Time framework: August – September 2005 • Cost – 6000 Euro

28. Data collection problems • The correct design of the questionnaries • Clear and understandable questions for respondent • Too detailed information required in case of burden project • Lack of statistical data • Ministry of Transport doesn’t know the number of the companies performing domestic operations • Statistical Office analyses companies employing more than 9 people and consider them as big firms • Interpretation of legislation vary at regional level and imposes different obligations

29. Costs structures • Costs of adaption of equipment • Costs of obtaining the qualifications • Cost of obtaining licences 2. Reporting costs 3.Costs of inspections

30. Simplification and RIA • Identification of regulatory and administrative costs in the existing legislation • Administrative costs are heavy burdens • Addressing administrative cost at the stage of carrying out RIA • Being aware that information obligation create costs for companies • Trying to eliminate unncessary information obligations

31. Results of the identification of administrative burdens • The total of 65 IOs identified

32. Quantitative results • Aggregate cost for carriage of persons 825 Mio PLN • Aggregate cost for carriage of goods 255,2 Mio PLN

33. IOs structure in the Road Transport Act 10.52 28.45 11.67 9.86 5.41 2.58 4.26 18.76 48.83 6.51 54.83 Drawing up of waybills Road toll Documentation concerning driver’s work Legal title of full power of disposal of a vehicle Maintenance of a register of drivers’ certificates Cost of regular examinations of drivers Certificate of professional competence Introduction of pressure devices Permit in carriage of dangerous goods Enabling access to tachograph record