peter bex

RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014

SIRA Consulting

Peter Bex

RED TAPE CONFERENCE

We can cut Red Tape better together!


CONTENT

• Red Tape

• Dutch history of regulatory reform

• The Standard Cost Model

• The Mark of Good Public Services


WHAT IS RED TAPE?

Non-essential procedures, forms, licences, and regulations

that add to the cost of dealing with government, or

Anything obsolete, redundant, wasteful or confusing that

diminishes the competitiveness of the Province, which

stands in the way of economic growth and job creation or

wastes taxpayers’ time and money.


Administrative Burden

LAWS & REGULATIONS

- Taxes

- Contributions

- Fines

- Administrative burden

- Compliance Costs

- Inspection Costs

REGULATORY BURDENS…

• Laws and regulations are necessary…

• So regulating a society and an economy, imposes costs on the businesses.

Financial Cost


WHO IS CAUSING AB AND FOR WHOM?

Issuing laws & regulations

by Government National

Government

Western Cape

Government

1 Metropolitan

Municipality

Local municipalities

5 Districtmunicipalities

INSTITUTIONAL BURDEN FOR THE

GOVERNMENT RED TAPE FOR BUSINESS RED TAPE FOR CITIZENS


DUTCH HISTORY OF REGULATORY REFORM



• FIRST AB MEASUREMENT

• Applying for an environmental permit.

• Result: € 1.6 billion per year.

• Caused: political stir to reduce this burden and investigate other existing burden

1998 2006 2003 2010 2007 2012 2014



• START OF AB REDUCTION PROGRAMME

• AB-Methodology established.

• Baseline measurement for all national legislation: € 16 billion per year.

• Aim new cabinet:

1998 2006 2003 2010 2007 2012 2014

AB reduction of 25% for businesses in 4 years

=

Increase Gross domestic product: 1,7%



• NEW CABINET SAME GOAL

• Provinces and municipalities measure the burden cause by local legislation.

• First AB-reduction program ends: resulted in cutting much dead wood.


1998 2006 2003 2010 2007 2012 2014

AB reduction of 25% for businesses in 4 years

AB reduction of 25% for citizens in 4 years



• BEYOND AB REDUCTION...

• Nett reduction of AB and Compliance costs (RIA: Regulatory Impact Assessment).

• Improve Government Services to Businesses (Mark of Good Public Services)


1998 2006 2003 2010 2007 2012 2014

Nett reduction target of € 2.5 Billion in 4 years

Noticeable burden reductions (Top Sectors)


THE STANDARD COST MODEL (SCM)


Determining the administrative burdens for the government

and businesses imposed by regulation

Measuring a single law, selected areas of legislation or all legislation in a country, province or municipality.

Measuring simplification proposals as well as the administrative consequences of a new legislative proposal.

Draw up reliable reports on the development of AB.

THE SCM IS A METHOD FOR:


Regulatory Burden (AB) = P x Q

Q

Number Activities per year

Number of

companies

Yearly

frequency

of the license

Number of

new license

applications

per year

or

P

Costs per (administrative) activities / investments

Internal

Costs

Man-hours

Internal Tariff

External

Costs

Out of

Pocket

Costs

Man-hours

External Tariff

Law or Regulation

(Administrative) activities / investments

(Information) Obligations

THE SCM MODEL:


REDUCE WITH REDUCTION TREE


MARK OF GOOD PUBLIC SERVICES


MARK OF GOOD PUBLIC SERVICES

Uniform framework for (a) measuring and (b) improving

the quality of government services for businesses

An improvement plan with the targets of the municipality

to improve their public services


With the overall aim to:

• Be an attractive municipality for businesses

• Stimulate the (local) economy

• Provide excellent public services

• To realise efficient procedures and processes

A DIFFERENT ANGLE

Question to business:

What does good public service look like?


RESULTS IN A SPIDER DIAGRAM

1. Waiting times within legal limits (F)

2. Quick response if legal limits are exceeded (F)

3. Requests are formally correct (F)

4. Officials have sufficient expertise (C)

5. Inspections are well coordinated & integrated (C)

6. Response to questions within 3 days (F)

7. Available information is up to date (I)

8. Businesses are satisfied with public services (C)

9. Few objections and appeals (I)

10. Reduction of -25% Administrative Burden (I)

RED TAPE TO RED CARPET Department of Design | Cape Town | 09.07.2014


IMPROVEMENT PLAN

• Shows the strengthnesses and weaknesses in public services

• Improvements for:

• Government organization overall

• 10 most important products

• Not just “another” plan: it structures and incorporates all existing initiatives to improve

public services (catalyst)

• Action planning: results within 2 years.


QUESTIONS?


THANK YOU !


SIRA Consulting

Edisonbaan 14G-1

3439MN Nieuwegein

+31(0)30 602 49 00

The Netherlands

Peter Bex

[email protected]

Michel Bloemheuvel

[email protected]

Western Cape Government

10th Floor Waldorf Arcade

80 St Georges Mall

021 483 9436

Cape Town

Michelle Ellis

[email protected]

Red Tape Reduction Unit of the

Department of Economic

Development and Tourism

peter bex

Government & Nonprofit

government red tape

business red tape

government services

years ab reduction

nett reduction of ab

abreduction program

ab measurement

burden cause