Media Release

04/2010
15 February 2010

OECD Review of Regulatory Reform in Australia Released

The OECD today released a report which confirms the Rudd Government’s economic and regulatory reforms have protected Australia from the global financial crisis.

In its first ever report reviewing regulatory reform in Australia, Towards a Seamless National Economy, 2009 Review of Regulatory Reform, the OECD states that Australia is a role model for OECD countries in its approach in this area.

The report confirms the Rudd Government’s ambitious reform agenda to build a seamless national economy will be a key driver of longer term growth and productivity for the future.

The Rudd Government welcomed the review and its recommendations and today released its formal response to the report.

Lindsay Tanner, Minister for Finance and Deregulation commissioned the review in 2008 and said today that ongoing regulatory reform is crucial to improving Australia’s productivity to meet longer term fiscal pressures identified in the Intergenerational Report released by the Treasurer earlier this month.

Lindsay Tanner said: “Relieving businesses and consumers of the burden of inappropriate, ineffective or unnecessary regulation will build Australia’s productive capacity and create a stronger economy.

“This review is highly encouraging as the OECD has assessed regulatory management processes of 26 other countries and Australia is rated amongst the best. But our work is by no means done.

The review stresses that Australia’s lacklustre productivity growth in the past decade makes it crucial that we continue to move forward with our regulatory reform agenda.

The report states: “Australia is one of the front-running countries in the OECD in terms of its regulatory reform practices” and “The Government has provided a renewed reform impetus, establishing a solid institutional framework.”

The OECD points in particular to the high profile of regulatory reform within the Australian government, the national reform programme developed in partnership with the States and Territories to harmonise key regulations across jurisdictions, and innovative structures at COAG level to facilitate national reforms.

The review identified four broad areas that would strengthen Australia’s regulatory framework and improve productivity. The Rudd Government today announced a range of initiatives to address these areas and implement the OECD’s recommendations.

The initiatives include:

Better business engagement

The Government will use Web 2.0 technologies to allow business to engage directly with government to help identify regulatory reform opportunities.
The Government will commence a regular Business Forum with relevant business stakeholders to further enhance consultation in relation to the Commonwealth’s Better Regulation agenda and COAG’s Business Regulation and Competition Working Group’s program of reforms.

Better analysis of regulatory impacts

The Government is developing a number of measures to further strengthen Regulatory Impact Assessment processes. These changes are designed to improve the quality, timelines and ambit of Regulatory Impact Statements. The changes will be announced in the near future.

Improved transparency

The Government will require that Australian Government agencies outline how they will regulate to minimise unnecessary costs and burdens on business and the not-for-profit sector in their Statement of Intent to the relevant Minister. Agencies will be required to report on these outcomes in their Annual Report.

Better inter-jurisdictional regulatory governance

The Government will consult with States and Territories to encourage them to use their regulatory impact analysis to identify proposals that could affect national markets.

A full copy of the Australian Government’s response to the OECD report is available online at: www.finance.gov.au

Media Contact:	Website:
Minister Tanner's Office - Nardia Dazkiw - 0418 144 690	www.financeminister.gov.au