Reducing Red Tape Within Government Rex Deighton-Smith

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Presentation transcript:

Reducing Red Tape Within Government Rex Deighton-Smith OECD Meeting of Senior Budget Officials Vienna, 2 June 2008

The red tape problem Problem analysis Lack of knowledge of actual requirements (“myths”) Limited understanding of costs of internal regulatory requirements Adoption of unduly risk-averse policies Major areas of concern identified: Government wide: Procurement & recruitment Internal to agencies: chief executive’s financial delegations, chief executive’s instructions

Solutions implemented Adoption of specified processes for developing new rules, including: problem analysis, identifying options, BCA, stakeholder consultation, independent advice Regular reviews required Correcting myths Adoption of a “myths vs realities” framework

Comments on the programme New processes closely reflect regulatory reform best practices Underlying issue of risk aversion also a theme re: external regulation Potential to “optimize” internal regulation is high: costs/benefits are more readily determined Potential gains also seem substantial Due to the scale of govt procurement & recruitment operations

Broader application? The Australian reform programme appears to be a new innovation However, the problems identified are likely to be widely experienced Adopting a system based process is sound Potential gains from change are large May be merit in a review of: Scale of problems Other programmes in this area