The Dutch Advisory Board on Administrative Burden Actal

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The Dutch Advisory Board on Administrative Burden
(Actal)

• The Hague
• March 5, 2008

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Topics

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

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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

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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

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First criterion measurement

• Zero-base measurement
• Standard Cost Model
• Ex ante measurement (new regulation)

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Second criterion targets

• Reduction targets for each ministry
• Nimby
• 25 percent target works well as an incentive

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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

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Fourth criterion incorporation

• Contain the flow of new regulation
• Independent watchdog Actal
• NET target

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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

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Assignment

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

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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

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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?

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Proof of the pudding - I
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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

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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

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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).

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Broadening compliance costs

• Why?
• Good governance
• Economy
• Bridging the gap between what government does and
  what business perceives

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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

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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)

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About Europe

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

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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

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Conclusions - I

• Four criteria for success of the Dutch approach
  on administrative burdens for businesses
• Measurement
• Targets
• Strong minister
• Incorporation in regulatory process.

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Conclusions - II

• Several opportunities to duplicate (broaden) the
  success
• Citizens
• Public administrations
• Compliance costs
• European union.

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Useful websites

• www.compliancecosts.com
• www.administrative-burdens.com
• www.actal.nl

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Contact information

• Actal
• P.O. Box 16228
• 2500 BE The Hague
• The Netherlands
• tel [phone]
• e-mail info_at_actal.nl
• Internet www.actal.nl