AIEA 2011 Group 6 Members: #2 Wei Duen Ho, #4 Penny Chu, #8 Sam Su, #10 Bryant Tseng, #12 Lori Chuang, #13 Chin-Mo Chen Regulation Reform- New Zealand

Better Regulation, Less Regulation Commitments:  introduce new regulation only when NZ is satisfied that it is required, reasonable, and robust.  review existing regulation in order to identify and remove requirements that are unnecessary, ineffective or excessively costly.

2 Principles of regulation  be the minimum necessary to achieve the objectives, and must take into account the costs, benefits and risks  be as generic and as simple as possible  use self-regulatory approaches where appropriate  be appropriately durable, predictable and adaptable  complement international best practice, where appropriate, being mindful of NZ ’ s commitment to a single economic market with Australia  minimise the compliance costs imposed  contribute to minimising the adverse impacts on:  innovation and investments  competition  individual responsibility (with appropriate risk balance)  property rights.

3 Efforts to reduce regulation NZ looks at the legislative changes made by the government and the way they impact on businesses and the public. It concentrates on the following types of changes:  removing requirements  streamlining processes  increasing flexibility  taking a risk-based approach  market expansion  strengthening regulatory requirements

4 Removing Requirements Savings &Indicative per annum savings regulationSavings to business/citizens Indicative per annum savings First year of savings Finanical reporting framework for small and medium sized business Removal of general purpose financial reporting requirements for small and medium sized business $90 million 2014 Abolition of gift duty Removal of the need to file annual gift statement $70 million 2011 Land transport rule Reduced paperwork$335,

5 Streamlining processes Example:  Streamlined border clearance process for exporters and importers: saving $40 m.  Speeding up the processing of passengers at Customs Objective: allows businesses to spend as little time as possible dealing with paperwork and more time on wealth creation.

6 Increased flexibility Example:  Introduction of ability for employees to cash up to one week's leave; but business can opt out  Trial period provisions extended to larger firms  Flexibility for trucks to carry heavier loads to increase productivity and reduce road congestion, productivity gains of 10 to 20 %.  Easier ways to complete business and the public surveys by web  Expanded use of could save over a million dollars per year(1.5m/ year) Objective: ensure regulation is sufficiently flexible to meet the changing needs of NZ's social and business environments

7 Taking a risk-based approach Feature:  Adapted to the different features of a firm and /or industry  Taking into account of the circumstances of a regulated firmed, eg. Track record, size.  One-size-fits-all rule  Find a balance between justifiable constrains & allowing flexibility for flowish innovative and investment  Suitable for food and beverage sector: because the huge differences in scale and products in the industry – flexible regulation is practical! Objective: reduce the burden and costs of regulation

8 MARKET EXPANSION  Enable economic growth  Encourage market activity  Highlight Development of a derivatives market  Provide credibility develop  Attract international participant National Animal Identification and Tracing  Strong contingency planning for biosecurity  Maintain confidence of international market

9 Strengthening regulatory requirement  Confidence  Certainty  Highlight Financial advisers  Provide advice on financial or investment planning Auditor regulation  Ability to audit public issuer early enough

10 Case 8.Changes to children’s nightwear  A transition time of a year was allowed for manufacturers and retailers to sew in new labels (to April 2009)  Cost between $1.2~$2.7 per garment put new label  Use temporary stickers so retailers and wholesalers reducing cost

11 Case 9.Patents Bill 2008  Bringing the process in line with international standards  Protect owners from competing claims and easier seek patents in overseas jurisdicions  Costs are increase as stricter criteria will lengthen examination process  A single examination model for both Australia and New Zealand