1. Measuring the “red tape” on citizens
Moving from the SCM towards the examination of the Compliance Costs
– EUPAN Learning Team –
9th Meeting on November 3, 2010 in Utrecht
Federal Chancellery, Better Regulation Unit
Sebastian Walz

2. Where we are coming from: SCM on citizens
Until March 2010 we recorded information obligations for citizens
Ex ante assessment of administrative burden on citizens: obligatory since 2009, reviewed by the National Regulatory Control Council (NRCC)
Ex post: in selected areas, starting with “simple access to…” projects, together with the regional and local level of government
The SCM-approach is modified and takes rather the necessary time than the financial investments into account

3. Lessons Learned from Governance of Better Regulation since 2006
Administrative Burdens, Compliance Costs and all other types of regulatory impacts never result from one source: It is always a combination of regulation, administration and real life conditions
Three necessary conditions to keep the better regulation process running - Power: independent advice, transparency, legal basis, binding methodology; Goals: measurable indicators Partners: stakeholder-involvement, trustful cooperation, facts and figures
Working together in Federalism means to respect competences and to provide facts and figures rather than reasons for decisions or politic talk

4. The Federal Programme for Reduction of Bureaucracy and Better Regulation at „stage 2“
Starting point: Coalition Treaty of Oktober 26, 2009
Cabinet decison of January 27, 2010
„… the Federal Programme for the Reduction of Bureaucracy and Better Regulation of April 25, 2006 is to be further developed and expanded to take into account the total administrative burden federal legislation places on citizens, businesses and public authorities.“

5. Core elements of the Federal Programme, „stage 2“
Attainment of the 25 per cent reduction target until 2011 based on a binding implementation plan
Examination of compliance costs in eight priority areas: reduction measures until 2011, on average by 25 per cent
Expansion of the ex ante process to include compliance costs
Increased involvement of the NRCC in the legislative process: broader mandate
Advancing bureaucracy reduction at the EU level (ex post and ex ante)
Coordinator briefs the Cabinet regularly on the programme’s progress

6. Going beyond the SCM – dealing with Compliance Costs
(preliminary definition:) „Substantive compliance costs are the direct monetary and time costs enterprises, citizens and public authorities incur in order to comply with federal norms. This includes inter alia the administrative costs stemming from information obligations.“
Examination of eight priority areas of life and law to get further practical experience with the evaluation of compliance costs
Preparation of a manual, together with the line ministries, the Federal Statistical Office and the NRCC

7. Priority areas of Life and Law – considering the Compliance Costs from the ex post-perspective
The areas are e.g.
- Application for statutory services of people who require care, are chronically ill or suffer from an acute, serious illness
- Application for statutory services of families and single parents
- Tax declarations, obligations to provide supporting documents for tax and customs affairs
Looking at the execution of the regulations at all levels: Each project is performed as a multi-level- and multi-field-of-law-project
The projects are ongoing, at different stages. It is planned to finish all projects, including reduction proposals, until about mid-2011

8. Where we want to get: Compliance Costs for citizens
The (preliminary) definition of the compliance costs offers a vast field for measuring the administrative burden
A balance between the ambitions of having exact numbers and the efficent use of resources is necessary
?: Should wie focus on cost drivers
(just the „real issues“ will be part of the examinations vs. the difficulty of defining when the direct monetary and time costs have to be classified as „drivers“)
?: Should we accept margins as measuring results
(transparency of statistical insecurities vs. difficulties of further usage of the measuring result(s))

9. - Wel bedankt -
Learn more about the German Federal Programme for Reduction of Bureaucracy and Better Regulation