Roinn an Taoisigh Department of the Taoiseach
	Effectiveness
Table of Contents Taoiseach's Foreword Executive Summary Glossary Overview Chart of Principles Necessity Effectiveness Proportionality Transparency Accountability Consistency Action Programme for Better Regulation Appendices Appendix I - Regulatory Impact Analysis (RIA) Appendix II - RIA and the Legislative Process	We will target our new regulations more effectively. We will make sure that regulations can be adequately enforced and complied with. We will ensure that existing regulations in key areas are still valid. Effective regulation requires clear, achievable objectives and ensuring that these policy goals remain to the fore throughout the regulatory process. An objective-led approach to regulation places greater emphasis on performance and outcomes. However, the assumptions underlying the stated objective must also be clear. These are the important events, conditions or decisions outside the regulation that must nevertheless prevail for the objective to be attained. An associated element of regulatory effectiveness is the need to minimise unintended outcomes. That means avoiding the creation of unnecessary barriers which can frustrate and inhibit innovation and stifle economic activity by reducing entry and exit to particular sectors and markets. Effectiveness, therefore, is also about ensuring that regulations are precise, not only in identifying the right targets, but also in confining the extent of their impact. This raises the question of downstream enforcement and compliance with regulations. This is often inadequately considered in terms of identifying acceptable and unacceptable levels of compliance, the range of enforcement options available and the likely costs involved. These aspects are important because they will ultimately determine whether or not regulations are observed. Is the regulation correctly targeted? We will target our new regulations more effectively We need a results-orientated approach to regulation. This means focusing on the outcomes of regulations rather than just the process of making regulations. Such an evaluation is in keeping with the Government's approach to public policy in other areas. For example, in financial matters, we are increasingly concerned with the outcomes of expenditure: the idea of value-for-money rather than simply focussing on the expenditure process. When we talk about targeting regulations more effectively, we mean a number of different things. Firstly, we mean being clearer about the key objectives of proposed new regulations. Often, it is difficult to determine precisely what we want to achieve from a particular Act or Statutory Instrument. At present, an Explanatory and Financial Memorandum is published at the same time as the Bill to which it refers. It is not normally updated to take account of changes made during the legislative process. In future, an Explanatory Guide, which will explain the main purpose and principal provisions of the legislation, will be published alongside Acts or secondary legislation with significant impacts, in particular those with major implications for the consumer/citizen or Small to Medium Enterprises (SMEs) e.g. consumer protection, health and safety of workers, etc. These Explanatory Guides will be in a user-friendly, accessible form. By informing citizens of their rights and entitlements, such guides will help promote greater compliance and reduce the burden of enforcement on the Exchequer. This will also complement the drive for consumer-centred customer delivery across the public service. Secondly, having clearly stated the key objectives of a proposed regulation, it may be possible to set down the overall goal to be achieved while leaving maximum flexibility as to how it can be achieved. For example, the objective of a regulation might be to reduce emissions of a particular pollutant. It may be possible to set the goal to be achieved in terms of the amount of emissions but leave flexibility for individual firms to decide how best to achieve this goal. Some firms may do it by cleaning up their production processes. Some may achieve it by using better raw materials. Others may do it by installing filtering equipment and so on. Thus, the regulation is clearly targeting the "end" to be achieved but avoids imposing too much of a burden by being over-prescriptive in terms of the "means". We propose to promote greater use of this type of outcome-orientated regulation. The third way that we can achieve better-targeted regulations is through Regulatory Impact Analysis (RIA) which will require a clear statement of the objective of a regulation. It is also important that we make the best attempt that we can to identify all likely impacts of a particular regulation through RIA. If RIA is used early enough in the formulation process, it can help to generate more and better ways of framing regulations so as to minimise unintended impacts and maximise effectiveness. To sum up: In terms of ensuring that new regulations are better targeted, the Government will: Publish Explanatory Guides alongside major primary legislation with significant impacts, particularly that which has major implications for consumers/citizens and/or SMEs; [Action 1.4.1(c)]; Improve the quality of the explanatory material that accompanies secondary legislation, including the production of Explanatory Guides, where appropriate [Action 1.2.3]; Promote wider use of regulation that leaves maximum flexibility as to how goals can be achieved [Action 5.2.1]; Use Regulatory Impact Analysis [Action 2.1.1]. Is it going to be properly complied with and enforced? We will make sure that regulations can be adequately enforced and complied with A key consideration in evaluating the effectiveness of a regulation is the extent to which it is complied with. A related issue is the cost of enforcement. If we had unlimited resources, we could probably achieve close to 100% compliance with all regulations, by putting in place large teams of inspectors, enforcement agents, monitoring mechanisms, etc. In reality, we do not have such resources and we must regulate more effectively to ensure the greatest level of compliance without excessive enforcement procedures. A simple example of this might be the regulations restricting the use of bituminous coal to achieve cleaner air. The regulations that were introduced for urban areas did not make the burning of bituminous coal illegal - not least because this would require significant numbers of inspectors to enforce. The regulations simply banned the sale of bituminous coal in specified urban areas. It is important, therefore, that when considering the regulations, we are aware of factors such as the levels of compliance that are likely to be achieved under the proposed enforcement regime and the costs involved. The introduction of a regulation must be seen as the first step only in achieving a policy goal. If it is not adequately formulated, implemented, enforced and complied with, the desired policy outcomes will not be achieved. We have not tended to use compliance and enforcement indicators to formally assess the success of regulatory decisions. Regulatory Impact Analysis will help to redress this for new regulations. With regard to existing regulations, assessments of compliance levels and enforcement will form an important part of the reviews of regulation affecting particular areas of economic and social life. The type of questions that we will ask include: Has the issue of compliance with the regulation been fully considered? What are the compliance costs and who is most affected by them? How can these costs be minimised? Has consideration been given to how enforcement can be improved? What criteria for success will be put in place? What methods of enforcement will be or are being applied? Is it obvious where full compliance has been achieved? Are there enforcement costs involved and who will bear them? Has attention been given to enforcement issues with respect to technological advances? In addition, wider and deeper consultation in advance of making regulations can assist with compliance. Active participation by stakeholders/citizens in the design and implementation of regulations is an effective way, not only of promoting openness and transparency in policy making, but also of ensuring greater understanding of, and compliance with, the regulation. To sum up: In terms of ensuring better compliance and enforcement, the Government will: Use RIA when framing new regulations so as to ensure maximum compliance without excessive enforcement procedures and costs [Actions 2.1.1-2.1.6]; Use sectoral regulatory reviews to assess compliance levels and enforcement costs [Actions 3.1.1-3.1.3]; Implement better consultation processes to inform and involve stakeholders [Actions 5.1.1-5.1.4]. Is it still effective? We will ensure that existing regulations in key areas are still valid The idea that regulations would be regularly reviewed, to ensure that their original objectives are still valid and/or being achieved, is an integral part of measuring effectiveness. With technological change and greater convergence of economic sectors, we need to ensure that there are regular systematic reviews of the effectiveness of regulation in particular areas and sectors. Under the principle of "necessity", a commitment is made to ongoing reviews of our regulatory "architecture" - the institutions that are in place within our regulatory framework. Here, this is reinforced by committing to ongoing review of the actual body of regulations governing key areas of society and the economy. These reviews will be undertaken in particular sectors or other areas of economic activity on a project basis. The reviews will examine the effectiveness of the regulations and regulators in particular sectors and may result in proposals for greater competition or re-regulation. It would be appropriate to conduct reviews of a sector where there are rapid changes in the global market, costs to consumers, enforcement and compliance burdens or negative economic impacts. While such reviews may be initiated by the Government or relevant Ministers, areas for review may also be suggested by the Better Regulation Group (BRG) based on its analysis of the regulatory burden. Areas for review may also be identified following consultation with, or suggestions by, representatives of consumers or SMEs. To sum up: In terms of ensuring that existing regulations in key economic areas are still valid, the Government will: Undertake sectoral regulatory reviews - systematic reviews of the regulations governing key areas within the economy and society [Actions 3.1.1-3.1.3]; Establish a new Better Regulation Group, inter alia, to advise on areas for review. [Action 3.3.1]. NON-COMPLIANCE WITH REGULATIONS Failure to comply with regulatory measures can arise for a number of reasons: Unwillingness by stakeholders to adhere to the regulation. This may happen when, for instance: the burden of compliance costs fall heavily on SMEs regulated parties have not been adequately consulted there is a complex set of regulations that stakeholders do not understand; Inadequate enforcement of regulation; Inadequate penalties for non-compliance; Lack of an implementation policy that gives stakeholders the necessary information and support mechanisms for compliance. REVIEW MECHANISMS IN OTHER COUNTRIES The Danish Government have established a Division for Better Regulation, based in the Ministry of Finance. The Division works on a number of projects including a comprehensive review of the regulatory system in Denmark, aimed at reducing the administrative burdens for both citizens and businesses. Together with the Prime Minister's Office, the Division also advises a high-level Regulation Committee regarding the legislative programme of the Government. In the Swedish Ministry of Industry, Employment and Communications, the SimpLex Unit aims to promote small business development by reducing the number of regulations, and making them more fair and intelligible. Its work consists of investigation and information, giving advice and support to government agencies and other regulatory bodies, reviewing present regulations and putting forward suggestions for modifications in order to promote simpler and more intelligible regulations. The UK's Better Regulation Task Force was set up in 1997 as an independent body to advise Government on actions to ensure good regulation. The Task Force does this through a series of reviews of particular regulatory issues by sub-groups of the Task Force. The sub-groups set their own working methods and produce detailed reports on the area. They do not carry out formal consultations but discuss their proposals with key stakeholders and with Ministers and Government Departments. When completed, the report is sent to the relevant Government Minister who is required to respond within 60 days of publication. The Task Force also monitors and assesses the Government's progress in response to its recommendations. << back next >>
	www.betterregulation.ie www.bettergov.ie