Report on the Introduction of Regulatory Impact Analysis
Executive Summary
The introduction of Regulatory Impact Analysis (RIA) was a key commitment in the Government White Paper Regulating Better. Regulatory Impact Analysis is a tool used to assess the likely effects of a proposed new regulation or regulatory change. It involves a detailed analysis to ascertain whether or not the new regulation would have the desired impact. It helps to identify any possible side effects or hidden costs associated with regulation and to quantify the likely costs of compliance on the individual citizen or business. It also helps to clarify the costs of enforcement for the State. RIA can enhance the quality of lawmaking in social and economic areas, enhance systems of governance and improve the capacity and performance of the public service.
The impetus for RIA can be traced back to the inclusion of regulatory reform as a central element of the Strategic Management/Delivering Better Government Initiative. Following Ireland's participation in an OECD regulatory reform peer review programme in 2000-2001, a Working Group developed a draft RIA model for the Irish context. As part of the White Paper Regulating Better, the Government committed to the piloting of this model with a view to its subsequent introduction in all Government Departments and Offices.
In agreeing these actions on RIA, the Government was influenced both by the EU Commission's work on impact assessment and the extensive benefits which have been associated with RIA internationally. RIA methodologies have been introduced in many other Member States and recent statistics suggest that it is compulsory in twelve of the twenty-five Member States. It is also increasingly being applied by Member States to draft EU Directives, both during the negotiation and transposition phases. RIA has clear benefits in terms of identifying the national impacts of EU proposals on a timely basis. In particular, it can highlight impacts that proposals may have on Ireland that are not identified in the EU Commission's impact assessment, which focuses on aggregate impacts across, rather than within, Member States.
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