Reducing Red Tape Within Government Rex DeightonSmith

1
Reducing Red Tape Within GovernmentRex
Deighton-Smith

• OECD Meeting of Senior Budget Officials
• Vienna, 2 June 2008

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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 executives
  financial delegations, chief executives
  instructions

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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

4
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

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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