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

2. 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

3. 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

4. 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

5. 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