Appendix One
Checklist for assessing regulatory practice
(Ministry of Economic Development, New Zealand)
Quality regulation necessitates quality processes. Good regulatory process requires governments to apply the following six principles[20]:
- Regulation should be based on a clear case for government action. This should include evaluating and explaining why existing measures are not sufficient to deal with the issue.
- A range of policy options, including self-regulatory and co-regulatory approaches, needs to be assessed within a cost-benefit framework.
- The option that is adopted should be the one that delivers the greatest net benefit to society.
- Effective guidance should be provided to regulators and regulated parties to ensure that the policy intent of the regulation is clear, as well as what is needed to be compliant.
- Mechanisms to monitor and review regulatory frameworks need to be built in to ensure that regulation remains relevant and effective over time.
- There needs to be effective consultation with regulated parties at the policy design and implementation stages.
Notes
- [20]These principles are similar to those noted by the Australian Taskforce on Reducing Regulatory Burdens on Business in their report “Rethinking Regulation” (2006), page vi; and those embodied in the “Generic Policy Development Process”, published by the New Zealand Ministry of Economic Development in 1997.
