Hon Bill English
Minister of Finance
Hon Rodney Hide
Minister for Regulatory Reform
8 September 2011
Red tape moves to cut costs by $200 million
Government measures to cut red tape are on track to cut compliance costs for businesses and consumers by around $200
million a year, Finance Minister Bill English and Regulatory Reform Minister Rodney Hide say.
The estimate is included in a new Ministry of Economic Development report, Regulatory Reform: Changes Affecting
Compliance Costs for Business and Citizens. The report, which will be produced annually, measures progress towards the
Government’s goals of better and less regulation.
"Good quality regulation helps protect the environment, the rights of consumers and the lives of citizens, while
ensuring an efficient economy. But poor quality regulation can slow economic growth by imposing unnecessary compliance
costs," Mr English says.
"Removing unnecessary regulation is an important part of the Government’s economic programme, so businesses have more
time to focus on how to increase their productivity and expand.
"The report shows the Government is on track to cut compliance costs by a net $200 million a year. But there is more to
do to improve regulation, with further changes to the Building, Resource Management and Securities Acts underway, as
well as work to identify barriers to export growth," Mr English says.
Mr Hide says the report shows progress across a wide range of areas.
"We are reducing compliance costs by abolishing gift duty, streamlining resource management processes, easing financial
reporting requirements for small business and reducing air passenger waiting times at Customs by introducing SmartGate
passport control," Mr Hide says.
"Such measures free up time for business and the public, allowing them to get on with their lives without constantly
having to deal with government.
"While the costs and savings of many reforms can't yet be fully calculated, future reports will develop this further.
They will also ensure the Government is under scrutiny to reduce regulation and improve its quality," Mr Hide says.
The report estimates regulatory changes over the past three years will reduce compliance costs to businesses and
consumers by $250 million a year.
This will be partly offset by $50 million a year in new costs related to strengthened regulatory requirements on
financial advisors, anti-money laundering measures and farm animal identification and tracing.
The full report can be viewed at www.med.govt.nz/compliancereport
ENDS