Consultation and better regulation, Gary Banks

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Presentation by Gary Banks, Chair, OECD Regulatory Policy Committee, and Dean ANZSOG, Australia and New Zealand School of Government, at the 6th Expert Meeting on Measuring Regulatory Performance: Evaluating Stakeholder Engagement in Regulatory Policy, Opening, The Hague, 16-18 June 2014. Further information is available at http://www.oecd.org/gov/regulatory-policy/

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Consultation and better regulation, Gary Banks

  1. 1. Consultation and better regulation Prof Gary Banks Chair, OECD Regulatory Policy Committee, and Dean ANZSOG Conference on Transparency and Stakeholder Engagement in Regulatory Policy, The Hague, 16 June 2014
  2. 2. “Adhere to principles of open government, including transparency and participation in the regulatory process …” 22 Recommendation 2 of the OECD Council
  3. 3. Why consult/engage? • Technical reasons −To understand the regulatory problem −To devise the best solution • Political reasons −To promote public awareness of the problem −To build support (trust) for the regulatory solution 3
  4. 4. When to consult? • Across the whole ‘regulatory cycle’: −‘problem diagnosis’ −‘options evaluation’ −‘prescription’ −‘ex post review’ 4
  5. 5. Who to consult? • Need interpret ‘stakeholders’ widely − Not just those with most at stake • Target those who will bear the costs of regulation, as well as those benefitting 5
  6. 6. • Goal: to optimise the technical and political benefits − Requires ‘real’ listening and learning − This takes time! • No single best way: need choose mechanisms and forums that are ‘fit for purpose’ How to consult? 6
  7. 7. Three core design features of Australia’s ‘Productivity Commission’ • Independence −Government funded, but arm’s length from the Executive −underpinned by Act of Parliament (role, tenure) • Economy/community-wide perspective −‘to achieve higher living standards for the Australian Community’ • Transparency −public processes (submissions, draft reports) −published outputs 7
  8. 8. Some Commission inquiries • Executive remuneration regulation • Private health insurance • Urban Land Planning and zoning • Water policy and regulation • Airport regulation • Retail sector regulation • Gambling regulation • Education workforce • Aged Care policy framework • Native vegetation regulation 8
  9. 9. Steps in the Commission's Inquiry Process Reference from Cabinet  PC calls for submissions  Initial consultations and Issues Paper  First round of hearings or roundtables  Draft Report publicly released  Second round of submissions and hearings/roundtables  Final Report to Government (subsequently publicly released)  Cabinet submission by relevant Minister  Decision and implementation 9
  10. 10. Evaluating consultation • As a ‘process’ − Did it tick the right boxes (RIS)? • What difference did it make? 10
  11. 11. Consultation and better regulation Prof Gary Banks Chair, OECD Regulatory Policy Committee, and Dean, ANZSOG Conference on Transparency and Stakeholder Engagement in Regulatory Policy, The Hague, 16 June 2014

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