Seminar Advancing Smart Regulation Regulatory burden reduction initiatives in the Netherlands

1. Seminar Advancing Smart Regulation Regulatory burden reduction initiatives in the Netherlands Stefan Koreneef andDimitri VerhoevenMinistry of Economic AffairsDirectorate-General for Enterprise and InnovationRegulatory Reform and ICT Policy Department

2. What is the definition of regulatory burden? Negative (side)effects of regulation which leads to • Time, Costs • Irritation • Negative image of the government Approach (for businesses) especially from a economic point of view: • Less costs for businesses • More economic growth and competitiveness Netherlands Bureau for Economic Policy Analysis (CPB)-calculation: 25% less administrative burdens = economic growth of 1,3%.

3. History regulatory burden policy (1) In 2002 we started with a 25% reduction of administrative burdens • Method: Zero-base measurement with the Standard Cost Model (SCM), target, central coördination and external watchdog (Actal) • Approach copied by other EU-memberstates, the OECD and the European Commission

4. Top of the iceberg

5. History regulatory burden policy (2) Approach broadened through the years: • Less administrative burdens • Less compliance costs • Less inspection costs • Improved and digital public services

6. Targets on regulatory costs 2002 – 2012 • On administrative burdens in % • Possible by using zero base measurement • On compliance costs in € • No zero base measurement available(too extensive, too complex, no support) 2012 and coming years: • On administrative burdens and compliance costs (combined) in € • Because of:- No zero base measurement on compliance costs available- No current zero base measurement on administrative burdens available

7. Program regulatory burden for businesses 2012-2017 • Structural netto reduction of regulatory burden € 2,5 billion for businesses, citizens and professionals • Together with stakeholders in at least 15 heavily regulated sectors we will examine perceived problems and find specific solutions to lower company costs and improve competitiveness • More use of ICT solutions (Company file) • Reform on inspections – joint effort with municipalities – reduction of inspection costs

8. Reduction of regulatory burden by€ 2,5 billion • For businesses € 2,1 billion (Ministry of Economic Affairs) - € 1,2 billion on progress report businesses - € 0,5 billion by making use of ICT - € 0,4 billion? Measures of 0.4 billion include the customized approach, the abolition of the timesheets declaration, the review of environmental law and simplifying the building regulations. • For citizens and professionals € 0,4 billion (Ministry of the Interior)- € 0,1 billion on progress report citizens- € 0,3 billion on new measures for citizens and professionals

9. Prevent new regulatory burden • The reduction of regulatory costs by € 2,5 billion is a netto target. • The Ministry of Economic Affairs checks the regulatory effects before discussion in the council of ministers. • Risk-files will be put on the agenda of the council of ministers. • Inevitable increase of regulatory burden have to be compensated by the ministry concerned. • The implementation of new measures in practice can be a risk for achieving the targets of the coalition agreement (for example financial sector)

10. 2. Customized approach on domains wich are important for the economy (1) • Government, businesses and stakeholders will cooperate to find solutions concerning the reduction of regulatory burden. • The customized approach implies the use of all available instruments to reduce regulatory burden, to simplify inspections and public services and to remove impediments to growth and innovation. • Start 1st fase in spring 2013 with domains mentioned in the coalition agreement (CA: banks, chemistry sector, logistics, agriculture & food, life sciences, construction and health sector). 1st result in pilot chemistry sector: 15% of all production costs are regulatory costs

11. Customized approach on domains wich are important for the economy (2) • Selection 2nd fase (start spring 2014) in cooperation with the Confederation of Netherlands Industry and Employers, the Dutch SME-Association and Actal. • The responsable ministry has to take the initiative to draw up and excute the action plan. • The Ministry of Economic Affairs coordinates domains for businesses. • The Ministry of the Interior coordinates domains for citizens and professionals.

12. 3. Improving (digital) public services • Poor public services cause irritation and costs for businesses. • Examples: long waiting lists, deliver data and information several times. • Approach necessary for noticeable reduction of regulatory burden. • Digitising is a powerful instrument. • Legislation for the right of doing business with the government electronically for citizens and businesses • The municipal public services will be stimulated by a customized programme for municipalities (‘Beter & Concreter’), the covenant smarter cities, the Mark of Good Public Services and by participation in the local regulatory burden-test. • In case of the digital company file, businesses can deliver their information only once. • A one-stop-shop for doing business with the government. http://www.youtube.nl/watch?v=NIVjuS8fqM4&feature=plcp

13. 4. Smarter inspections: close cooperation of inspectorates • Inspectorates (national and local government) will cooperate intensively and closely to reduce inspection costs. • Improving the information-exchange between inspectorates and between inspectorates and businesses (company file). • Customized approach to reduce inspection costs.

14. State of play: regulatory burden Local and regional governments • Covenant Smarter Cities- Smarter use of ICT • Customized programme for municipalities (‘Beter & Concreter’):- Improving implementation of legislation- Reducing inspection costs- Improving Public Services- Regulatory burden-ambassadors Europe • Regulatory Fitness and Performance Programme (REFIT) - Start: 2014. • The High level Group of Independent Stakeholders on Administrative Burdens (‘Stoiber-group’) representing the businesses- Reducing regulatory burden by independent “watchdogs” (Actal)

15. Burning questions