- Hon David Seymour
Regulation Minister David Seymour welcomes the passing of the Regulatory Standards Bill into law.
"This is a historic moment for Kiwis' rights. Politicians will no longer be able to hide lazy thinking that piles regulatory costs on Kiwis. The high cost of regulation will be there for all to see, for each and every law. Over time, political pressure will reduce those costs," Mr Seymour says.
"The Regulatory Standards Bill is a companion to three other transparency laws that protect New Zealanders' rights. Voters can see if politicians are running up debt, thanks to the Public Finance Act (1989). They can see if politicians are inflating away the value of a dollar, thanks to the Reserve Bank Act (1989). They can see if politicians are attacking their personal freedoms, thanks to the Bill of Rights Act (1990). So far, though, the high costs of regulating their use and exchange of property have been hidden.
"The Regulatory Standards Bill makes the cost of regulation clear to voters. It will require restrictions on peoples' liberties, severe impairments of their property rights, and the goals, logic, and alternatives considered to be laid bare. Unlike Regulatory Impact Statements these requirements will be in law, and a new entity will be watching it.
"A strong watchdog - the Regulatory Standards Board - will see to it that the costs are made clear. They will review the quality of Consistency Accountability Statements, similar to current Regulatory Impact Statements, to make sure the public have the information.
"The Board can also review existing laws. This can be to respond to complaints, or on its own initiative. Its assessments of the costs will be published, and the public can pass their own judgement.
"Ultimately, this Bill will improve New Zealand's productivity. It ensures that regulated parties are regulated by a system which is transparent, has a mechanism for recourse, and holds regulators accountable to the people. The high cost of regulation has been ignored for too long, but it can be devastating, right down to individual level.
"I'd like to share one story of personal devastation from regulatory overreach. I heard from a constituent who worked 45 years, mostly in public service, raised a family, and paid off an apartment. She saved enough for a good retirement and to spoil her grandchildren. Now a huge chunk of those savings has evaporated, through no fault of her own.
"It all started when her apartment block's body corporate decided to knock off some routine maintenance tasks that triggered obligations under the Earthquake Prone Buildings law. The extensive, unexpected earthquake strengthening works decimated her savings. Adding insult to injury, the Government now deems the earthquake strengthening rules were never necessary.
"What's tragic about the earthquake laws is that people knew they didn't stack up even as they were passed in 2016. I voted against them on the evidence, but most people ignored it. The Regulatory Standards Act will put evidence-based policy front and centre so it cannot be ignored so easily ever again.
"Bad regulations have real consequences for real people. People work hard to earn their livelihood. Now there is scrutiny for people who ruin it with bad regulations. The public will be brought around the Cabinet table. They will be able to see how politicians make decisions, based on whose advice. If people don't like what they see, they can have their say at the voting booth."
The Regulatory Standards Bill:
- provides a benchmark for good legislation through a set of principles of responsible regulation
- enables transparent assessment of the consistency of proposed and existing legislation with the principles
- establishes a Regulatory Standards Board to independently consider the consistency of proposed and existing legislation, and
- strengthens regulatory quality by supporting the Ministry for Regulation in its regulatory oversight role.
