“Overview of Ireland’s Experiences with RIA”

“Overview of Ireland’s Experiences with RIA”

OECD’s Good Governance for Development in Arab Countries Initiative : Working Group IV

Tunis, Tunisia, 16 February 2007

Tom Ferris Ireland

Contents of Presentation

1. Putting RIA in context2. Origins of RIA in Ireland3. Two Types of RIA 4. Structures for RIA 5. First RIA Results6. RIA Consulatation7. EU Groundwater Directive8. Challenges for RIA9. “Doing RIAs”10. “RIAs & Cons”

(1) RIA used to….

Clarify the justification for Regulation Assess the alternatives (taxes, grants or

fines) identify all costs and benefits enhance law-making quality improve governance systems improve public service outputs enhance consultation inform EU negotiations try and ensure “no surprises”

Regulatory Impact Assessment is……

A framework for assessing the likely effects of a proposed regulation, or of regulatory change

A means of assessing the impacts, side effects and costs of regulation

Includes structured consultation with stakeholders and citizens

A discipline to be applied at early stage in the regulatory cycle – before Government decides to regulate

Not a substitute for decision-making but can help to inform policy decisions

RIA is a vetting process…

Before recommending regulations, policy review groups should consider the potential for alternative approaches. This may include preparing a RIA, but it may not be required

When Memoranda brought to Government seeking approval for General Scheme of a Bill, RIA to be attached to such Memoranda

RIA to be applied to draft EU Directives once they have been published by the Commission

RIAs to be published subject to FOI exemptions

RIA allows policy-maker to...

Encourage a more structured and explicit examination of expected costs and benefits

Highlight importance of consultation with stakeholders Encourage earlier focus on enforcement and

compliance issues Who will enforce the regulations, what are the

compliance targets? Introduce performance indicators for regulations, so

that we can know if regulations are working well (or not working well)

Respond to EU legislative proposals

Are There Wider Benefits ?

Can help address cross-cutting issues

Can identify unintended effects as

well as alternative solutions

Demonstrates that RIA can help

inform Ireland’s negotiating position

and transposition of EU Directives

(2) Origins of Ireland’s RIA

Influence of OECD and EU on RIA in Ireland

“Delivering Better Government” (Irish Government

1996)

Public Service Modernisation Act 1997

OECD, Regulatory Reform in Ireland, 2001

“Regulating Better” (Irish Government 2004)

Cabinet 2005 Decision – RIA on all new regulations

“Towards 2016”, 10-Year Partnership Agreement

National Implementation Milestones in Ireland

2001 OECD Regulatory Review of Ireland

2002 Draft Regulatory Impact Analysis (RIA) model developed

2004 Publication of Government White Paper, Regulating

Better RIA Pilot Projects

2005 Publication of RIA Report & Consultation Guidelines

2006 First set of RIAs were published

RIA Publications from Department of the Taoiseach

RIA Guidelines : How to conduct a

Regulatory Impact Analysis (2005)

A Report on the Introduction of

Regulatory Impact Analysis (2005)

Reaching out : Guidelines on Consultation

for Public Sector Bodies (2005)

www.betteregulation.ie

Benefits of Guidelines

Best Practices shared

Provoke ideas on alternative methods of consulting

Increase awareness among groups and individuals who wish to participate in the RIA process

Alerts interested parties on what to expect

www.betterregulation.ie

(3) Two Types of RIA

Two phased approach: Screening RIA

Applied to all primary legislation involving changes to regulatory framework, significant Statutory Instruments and draft EU Directives and EU Regulations

Full RIA Only conducted where Screening RIA suggests significant

impacts (six criteria identified above) or significant costs (initial cost of €10 million or cumulative costs of €50 million over 10 years)

Regulatory Proposal

Screening RIA

Info

rmal

Con

sultat

ion

Significant impacts?

No Yes

Full RIA

Form

al Con

sultation

Screening RIA to Government with Memorandum

Full RIA to Government with Memorandum

The RIA Process

How to do Screening RIA ?

Screening RIA to be applied to:

All primary legislation involving Changes to regulatory framework, Significant Statutory Instruments Draft EU Directives or Regulations

And Screening RIA involves ?

Description of policy context, objectives & policy options/choices

Identification of cost, benefits and other impacts of options

Informal consultation including Government Departments, consumer and other interests

Description of how enforcement and compliance will be achieved

Review – how will performance of regulations be measured?

How to do Full RIA ?

Full RIA only conducted where Screening RIA suggests: Significant impacts (six criteria

identified) Significant costs (initial cost of €10

million or cumulative costs of €50 million over 10 years)

International experience suggests Full RIA in 10-15% of cases

Full RIA where one of Six Criteria applies…

1. National competitiveness2. Socially excluded/vulnerable groups3. Impacts on the environment 4. Whether proposals involve a significant

policy change in an economic market including impacts on consumers and competition

5. Impacts on the rights of citizens 6. Whether the proposal involves a significant

compliance burden

And Full RIA involves ?

More detailed analysis of options More in-depth analysis of

impacts including in some cases CBA

Formal consultation Summary of pros and cons of

each option and identification of a recommended option where appropriate

(4) Structures for RIA

Government Secretariat

All Ministries

Ministry of Finance’s Training Centre

Ministries of Prime Minister and Finance

RIA check on Memos to Government

RIAs undertaken

Training and technical advice

Reality checks on robustness of RIAs

1. In-house expertise of economists; lawyers and analysts 2. Commission research and studies 3. Dedicated RIA Training

4. Networking for RIA 5. International Data and “best practice” Gathering Data / Information o In-house expertiseo Commission research o Dedicated RIA Training o Networking for RIA o Data /“best practice”o Other (e.g. Focus groups/questionnaires)

Critical Questions for RIA:To Enforce and Comply ?

Are proposals enforceable? e.g. resources

Who will enforce them?

How will consistency and accountability be

ensured?

What are compliance targets?

Do benefits justify compliance costs?

Critical success factors

High level administrative and political support

Central Support from Prime Minister’s Department

Awareness-raising and training

Development of RIA network for sharing of experience/best practice

Ongoing liaison with EU colleagues especially EU Directors of Better Regulation

Learning from doing – RIA very much an iterative process

(5) First Results --Pilot Departments/Offices

Health and Children Medical Practitioners Bill

Enterprise, Trade and Employment Export Controls Bill

Office of the Revenue Commissioners Betting Duty Regulations

Justice, Equality and Law Reform Coroners Bill

Environment, Heritage and Local Government Draft EU Groundwater Directive

Some Recent RIAs Report for Forfas, by ERM Environmental Resources Management Ireland Ltd.,

April 2005 Impact Assessment of the Proposed EU Chemical Policy (REACH)

Company Law Review Group, December 2005 Regulatory Impact Analysis on Directors’ Compliance Statement

Financial Regulator, December 2005 Regulatory Impact Analysis on Consumer Protection Code

Environment, Heritage and Local Government, May 2006 Waste Management (End-of-Life Vehicles) Regulations 2006, S.I. No. 282 of 2006

Enterprise, Trade and Employment, August 2006 Consumer Protection (National Consumer Agency) Bill 2006: Screening Regulatory

Impact Analysis

Enterprise, Trade and Employment, September 2006 Safety, Health and Welfare at Work (Construction) Regs., 2006

Environment, Heritage and Local Government, Nov. 2006 Part G (Hygiene) of the Building Regulations: Proposed requirement for Dual Flush

Toilets

Are Lessons Being Learned ?

Yes - many RIA lessons being learned :

More structured and explicit focus on the objectives behind

regulations – with identification of problems being addressed

Identification and analysis of alternative options for

achieving policy goals

Recognition of difficulties of analysing and quantifying the

costs associated with regulations

Experiences are now being shared

(6) RIA Needs to Have Consultation

To assist the decision-making process

To contribute to evidence-based policy

making

To help identify possible alternatives to

regulation

To strengthen focus of policy makers on the

needs of the public and end-consumer

Irish Consultation Guidelines Key Element of Regulatory Impact Assessment

(RIA)

Government White Paper ‘Regulating Better’: Action Plan 5.1

Procedures and Guidelines will be developed to promote better quality public consultation and to outline a full range of consultation options.

Consideration will be given to the mechanisms for ensuring balanced coordination procedures, taking care to consider the particular requirements for ‘not-for-profit’ groups

www.betterregulation.ie

Consultation means..

Structured public engagement with those whose views

are to be sought

Providing information to the key audience on the purpose

and subject of the consultation

e.g. a policy initiative, a regulatory change, a legislative

proposal or a service delivery

Seeking, receiving, analysing and responding to feedback

from the key audience

It is important to differentiate between

Ongoing consultative mechanisms (involving standing

committees, fora or groups) and

Once-off consultation exercises

Different Methods of Consultation

Written Consultations Questionnaire-based survey Internet and use of IT tools Face-to-Face Interviews Use of Focus Groups Public Meetings

Feedback and Review are Critical

Give feedback to key players and

those who participate

Publish and acknowledge

submissions made (taking account

of data protection etc.)

Review the consultation process

(7) EU Groundwater Directive

Slide 1 : Overview

Slide 2 : What work was required

Slide 3 : What Benefits

Slide 3 : What Costs

Ministry of Environment, Heritage and Local Government

Draft EU Groundwater Directive …(1)

1. Framework to protect surface and groundwater

2. EU : Nine Member States were doing this RIA

3. Ireland : Cross-sectoral Team (Ministry and Environmental Protection Agency etc.)

4. Objectıve : “....to protect and control water pollutıon...”



1. Compulsory Directive…but with scope to adapt

2. Costs/benefits for economıc, envıronmental and socıal impacts to be included

3. Very technical and very complex matter

4. Team debated overall findings and conclusions- not into deep detail

5. Benefit of “CREATIVE BRAINSTORMING”



BENEFITS

1. Quality of life – now and into the future

2. Less Water Treatment Plants (and so less costs)

3. Better farm practices (less pollution)

4. Better industry practices


Draft EU Groundwater Directive… (4)

COSTS

1. More monitoring

2. More reports

3. More enforcement

4. More compliance (farms, mining and roads construction and maintenance)

(8) Challenges for RIA

Yes, many elements of RIA already there

But traditional ways will be challenged

Key players will feel some discomfort!

And yet if RIA is well explained there can be real benefits for the main players and in the public interest

Make every effort to share experiences

“Overview of Ireland’s Experiences with RIA”

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