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The Dutch Advisory Board on Administrative Burden (Actal). The Hague March 5, 2008. Topics. Businesses Four criteria for success The proof of the pudding Broadening the scope Citizens Public administrations Compliance costs Europe. Businessess. Good governance
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The Dutch Advisory Board on Administrative Burden (Actal) The Hague March 5, 2008
Topics • Businesses • Four criteria for success • The proof of the pudding • Broadening the scope • Citizens • Public administrations • Compliance costs • Europe
Businessess • Good governance • Reducing administrative burdens for businesses is good for economy • 25 % reduction policy results in: • Labour productivity + 1.7 % • GDP growth + 1.5 %
Businesses: four criteria for success • Review of World Bank (2007) and OECD (2007): • Dutch programme on reducing administrative burdens for businesses is world leading. • Four criteria for success: measurement, reduction targets for each ministry, strong coordinating minister, incorporation in the regulatory process
First criterion: measurement • Zero-base measurement • Standard Cost Model • Ex ante measurement (new regulation)
Second criterion: targets • Reduction targets for each ministry • Nimby • 25 percent target works well as an incentive
Third criterion: strong minister • Ministry of Finance • Budget cycle (carrot and sticks) • Situation since 2007 (new cabinet): two state secretaries, still linked to the budget cycle
Fourth criterion: incorporation • Contain the flow of new regulation • Independent watchdog: Actal • NET target
The Actal Organisation • Independent watchdog, assessor and facilitator • Established in 2000: focus on AB for businesses • From 2005: AB for citizens too • Final date: 1st of June 2011 • Small organisation: 3 Board members, 13 staff
Assignment • Bring about a cultural shift among legislators and policy officers “Policy officers should consider the effects for AB on their own initiative”
Method of working • The two main instruments are: - advise ministries on proposed legislation - advise ministries on existing legislation Also: Parliament (only at request) - assess amendments • Supervisory bodies • Local government • European Union
Proposed legislation: Test criteria • Are the administrative burdens quantified? • Is the quantification correct? • Are alternative options considered that may lead to lower administrative burdens? Is the least burdensome option chosen? • Are arguments provided as to why a certain option was preferred and possible alternatives were rejected? • Is the least burdensome option chosen in implementation (enforcement) of laws and regulations?
Proof of the pudding - II • Delivery of results: • Reduction plans from ministries • Ex ante measurement of new regulation • Effect on AB matters for decisionmaking • Actual reduction of AB businesses
Broadening the scope: citizens • AB Citizens (since 2005) • (Partial) zero-base measurement; SCM • Reduction targets for each ministry • Coordination by Ministry of the Interior • Ex ante measurement and Actal • Cumulative burdens for target groups, e.g.: • Disabled persons; • Elderly
Broadening the scope: public administrations • The example is the education sector: • Zero-base measurement; SCM • Net reduction target • Initiative of Ministry of Education • Ex ante measurement; checked by Actal • Presently our cabinet aims to broaden the scope to public administrations in general (this is still under construction).
Broadening: compliance costs • Why? • Good governance • Economy • Bridging the gap between what government does and what business perceives
Broadening: compliance costs • This is presently under construction • It can be measured: probably a partial zero-base measurement • Probably gross reduction targets for some specific domains • Coordination by state-secretaries Finance plus Economic Affairs • Ex ante measurement; checked by coordinating ministries or Actal
Broadening the scope: Europe • About 50% of Dutch AB originate from Europe • Thirteen priority areas are presently measured • Gross reduction target on priority areas [Fast track proposals] (future ambition for net target?) • Coordination by commissioner Verheugen (DG Enterprise) • Flow: ex ante measurement for all new proposals (Impact Assessment Board)
About Europe • Joint position papers of NKR, BRC, Actal on European efforts • First position paper: 1 March 2007 • Second paper: 19 Oktober 2007
Europe: some of our wishes • Measurement of the full Acquis • Net reduction targets for each DG • Better ex ante measurement of AB for new proposals • Independent watchdog (High Level Group: Stoiber) • Truly independent • Good mandate
Conclusions - I • Four criteria for success of the Dutch approach on administrative burdens for businesses: • Measurement; • Targets; • Strong minister; • Incorporation in regulatory process.
Conclusions - II • Several opportunities to duplicate (broaden) the success: • Citizens; • Public administrations; • Compliance costs; • European union.
Useful websites • www.compliancecosts.com • www.administrative-burdens.com • www.actal.nl
Contact information Actal P.O. Box 16228 2500 BE The Hague The Netherlands tel: +31-(0)70-3108666 e-mail: info@actal.nl Internet: www.actal.nl