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Reducing Red Tape Within Government Rex Deighton-Smith. OECD Meeting of Senior Budget Officials Vienna, 2 June 2008. The red tape problem. Problem analysis Lack of knowledge of actual requirements (“myths”) Limited understanding of costs of internal regulatory requirements

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reducing red tape within government rex deighton smith

Reducing Red Tape Within GovernmentRex Deighton-Smith

OECD Meeting of Senior Budget Officials

Vienna, 2 June 2008

the red tape problem
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
solutions implemented
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
comments on the programme
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
broader application
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
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