Sydney, Thursday 23 February: Chief Executive Officer of the Australian Institute of Company Directors (AICD) Mr Ralph Evans today applauded the holistic program of regulation reform being considered by the Federal Government, but warned results could be hampered without the co-operation of all layers of government.
“Directors are encouraged by the Federal government’s message signalling a sustained effort to reform the complex and systemic issues underlying the recent explosion of red tape,” said Mr Evans in response to the comments made yesterday by the secretary of the Department of the Prime Minister and Cabinet, Mr Peter Shergold, about the nature of the current red tape review.
“Better quality regulation across all levels of government, rather than sheer quantity, should be the prime directive of any red tape reform agenda.”
AICD believes greater assessment of the scope of regulation, its cost to business and the community, and the harmonisation and rationalisation of regulatory and reporting requirements where they are overlapping and inconsistent, can only lead to a more vibrant, competitive and robust economy.
“Too many human and financial resources are currently devoted to the compliance with and enforcement of ill-fitting or outdated regulation.”
More consideration and explanation of ‘how and why’ before additional layers of regulation are applied, in addition to mechanisms for continuous review of regulatory effectiveness, can only lead to better informed policy decisions and better quality outcomes for business, government and the community.
While AICD congratulated the Federal government on completion of the review and looks forward to the release of the Regulatory Taskforce’s report, Mr Evans warned that any reform agenda will only be truly effective if all layers of government seize the opportunity to work co-operatively.
“The ACID is not calling for no regulation. Many of the ‘red tape’ issues business face result not from one source of red tape but from the multiplicity of sources of regulation, with slight variations between states and the commonwealth.”
Mr Evans called on state governments to show the same commitment to harmonisation and simplification of regulation and reporting for a more efficient system, and to collaborate with the Federal government review for more effective outcomes.
“Boards and directors are delighted at this opportunity to refocus the national business culture on performance, and the creation of enterprises, wealth and jobs rather than the current excessive focus on ‘tick a box’ compliance that over-regulation promotes” Evans said.
For media inquiries please contact: Jenny Donnithorne, AICD, on 02 8248 6683/0400 363 916 or Rachael McCavanagh, AICD, on 02 8248 6645/0422 864686