The Dutch Advisory Board on Administrative Burden (Actal)

1. The Dutch Advisory Board on Administrative Burden (Actal) The Hague March 5, 2008

2. Topics • Businesses • Four criteria for success • The proof of the pudding • Broadening the scope • Citizens • Public administrations • Compliance costs • Europe

3. Businessess • Good governance • Reducing administrative burdens for businesses is good for economy • 25 % reduction policy results in: • Labour productivity + 1.7 % • GDP growth + 1.5 %

4. Businesses: four criteria for success • Review of World Bank (2007) and OECD (2007): • Dutch programme on reducing administrative burdens for businesses is world leading. • Four criteria for success: measurement, reduction targets for each ministry, strong coordinating minister, incorporation in the regulatory process

5. First criterion: measurement • Zero-base measurement • Standard Cost Model • Ex ante measurement (new regulation)

7. Second criterion: targets • Reduction targets for each ministry • Nimby • 25 percent target works well as an incentive

8. Third criterion: strong minister • Ministry of Finance • Budget cycle (carrot and sticks) • Situation since 2007 (new cabinet): two state secretaries, still linked to the budget cycle

9. Fourth criterion: incorporation • Contain the flow of new regulation • Independent watchdog: Actal • NET target

10. The Actal Organisation • Independent watchdog, assessor and facilitator • Established in 2000: focus on AB for businesses • From 2005: AB for citizens too • Final date: 1st of June 2011 • Small organisation: 3 Board members, 13 staff

11. Assignment • Bring about a cultural shift among legislators and policy officers “Policy officers should consider the effects for AB on their own initiative”

12. Method of working • The two main instruments are: - advise ministries on proposed legislation - advise ministries on existing legislation Also: Parliament (only at request) - assess amendments • Supervisory bodies • Local government • European Union

13. Proposed legislation: Test criteria • Are the administrative burdens quantified? • Is the quantification correct? • Are alternative options considered that may lead to lower administrative burdens? Is the least burdensome option chosen? • Are arguments provided as to why a certain option was preferred and possible alternatives were rejected? • Is the least burdensome option chosen in implementation (enforcement) of laws and regulations?

14. Proof of the pudding - I

15. Proof of the pudding - II • Delivery of results: • Reduction plans from ministries • Ex ante measurement of new regulation • Effect on AB matters for decisionmaking • Actual reduction of AB businesses

16. Broadening the scope: citizens • AB Citizens (since 2005) • (Partial) zero-base measurement; SCM • Reduction targets for each ministry • Coordination by Ministry of the Interior • Ex ante measurement and Actal • Cumulative burdens for target groups, e.g.: • Disabled persons; • Elderly

17. Broadening the scope: public administrations • The example is the education sector: • Zero-base measurement; SCM • Net reduction target • Initiative of Ministry of Education • Ex ante measurement; checked by Actal • Presently our cabinet aims to broaden the scope to public administrations in general (this is still under construction).

18. Broadening: compliance costs • Why? • Good governance • Economy • Bridging the gap between what government does and what business perceives

19. Broadening: compliance costs • This is presently under construction • It can be measured: probably a partial zero-base measurement • Probably gross reduction targets for some specific domains • Coordination by state-secretaries Finance plus Economic Affairs • Ex ante measurement; checked by coordinating ministries or Actal

20. Broadening the scope: Europe • About 50% of Dutch AB originate from Europe • Thirteen priority areas are presently measured • Gross reduction target on priority areas [Fast track proposals] (future ambition for net target?) • Coordination by commissioner Verheugen (DG Enterprise) • Flow: ex ante measurement for all new proposals (Impact Assessment Board)

22. About Europe • Joint position papers of NKR, BRC, Actal on European efforts • First position paper: 1 March 2007 • Second paper: 19 Oktober 2007

23. Europe: some of our wishes • Measurement of the full Acquis • Net reduction targets for each DG • Better ex ante measurement of AB for new proposals • Independent watchdog (High Level Group: Stoiber) • Truly independent • Good mandate

24. Conclusions - I • Four criteria for success of the Dutch approach on administrative burdens for businesses: • Measurement; • Targets; • Strong minister; • Incorporation in regulatory process.

25. Conclusions - II • Several opportunities to duplicate (broaden) the success: • Citizens; • Public administrations; • Compliance costs; • European union.

26. Useful websites • www.compliancecosts.com • www.administrative-burdens.com • www.actal.nl

27. Contact information Actal P.O. Box 16228 2500 BE The Hague The Netherlands tel: +31-(0)70-3108666 e-mail: info@actal.nl Internet: www.actal.nl