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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
SIRA Consulting
Peter Bex
RED TAPE CONFERENCE
We can cut Red Tape better together!
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
CONTENT
• Red Tape
• Dutch history of regulatory reform
• The Standard Cost Model
• The Mark of Good Public Services
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
WHAT IS RED TAPE?
Non-essential procedures, forms, licences, and regulations
that add to the cost of dealing with government, or
Anything obsolete, redundant, wasteful or confusing that
diminishes the competitiveness of the Province, which
stands in the way of economic growth and job creation or
wastes taxpayers’ time and money.
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
Administrative Burden
LAWS & REGULATIONS
- Taxes
- Contributions
- Fines
- Administrative burden
- Compliance Costs
- Inspection Costs
REGULATORY BURDENS…
• Laws and regulations are necessary…
• So regulating a society and an economy, imposes costs on the businesses.
Financial Cost
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
WHO IS CAUSING AB AND FOR WHOM?
Issuing laws & regulations
by Government National
Government
Western Cape
Government
1 Metropolitan
Municipality
Local municipalities
5 Districtmunicipalities
INSTITUTIONAL BURDEN FOR THE
GOVERNMENT RED TAPE FOR BUSINESS RED TAPE FOR CITIZENS
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
DUTCH HISTORY OF REGULATORY REFORM
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
DUTCH HISTORY OF REGULATORY REFORM
• FIRST AB MEASUREMENT
• Applying for an environmental permit.
• Result: € 1.6 billion per year.
• Caused: political stir to reduce this burden and investigate other existing burden
1998 2006 2003 2010 2007 2012 2014
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
DUTCH HISTORY OF REGULATORY REFORM
• START OF AB REDUCTION PROGRAMME
• AB-Methodology established.
• Baseline measurement for all national legislation: € 16 billion per year.
• Aim new cabinet:
1998 2006 2003 2010 2007 2012 2014
AB reduction of 25% for businesses in 4 years
=
Increase Gross domestic product: 1,7%
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
DUTCH HISTORY OF REGULATORY REFORM
• NEW CABINET SAME GOAL
• Provinces and municipalities measure the burden cause by local legislation.
• First AB-reduction program ends: resulted in cutting much dead wood.
• Aim new cabinet:
1998 2006 2003 2010 2007 2012 2014
AB reduction of 25% for businesses in 4 years
AB reduction of 25% for citizens in 4 years
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
DUTCH HISTORY OF REGULATORY REFORM
• BEYOND AB REDUCTION...
• Nett reduction of AB and Compliance costs (RIA: Regulatory Impact Assessment).
• Improve Government Services to Businesses (Mark of Good Public Services)
• Aim new cabinet:
1998 2006 2003 2010 2007 2012 2014
Nett reduction target of € 2.5 Billion in 4 years
Noticeable burden reductions (Top Sectors)
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
THE STANDARD COST MODEL (SCM)
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
Determining the administrative burdens for the government
and businesses imposed by regulation
Measuring a single law, selected areas of legislation or all legislation in a country, province or municipality.
Measuring simplification proposals as well as the administrative consequences of a new legislative proposal.
Draw up reliable reports on the development of AB.
THE SCM IS A METHOD FOR:
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
Regulatory Burden (AB) = P x Q
Q
Number Activities per year
Number of
companies
Yearly
frequency
of the license
Number of
new license
applications
per year
or
P
Costs per (administrative) activities / investments
Internal
Costs
Man-hours
Internal Tariff
External
Costs
Out of
Costs
Man-hours
External Tariff
Law or Regulation
(Administrative) activities / investments
(Information) Obligations
THE SCM MODEL:
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
REDUCE WITH REDUCTION TREE
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
MARK OF GOOD PUBLIC SERVICES
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
MARK OF GOOD PUBLIC SERVICES
Uniform framework for (a) measuring and (b) improving
the quality of government services for businesses
An improvement plan with the targets of the municipality
to improve their public services
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
With the overall aim to:
• Be an attractive municipality for businesses
• Stimulate the (local) economy
• Provide excellent public services
• To realise efficient procedures and processes
A DIFFERENT ANGLE
Question to business:
What does good public service look like?
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
RESULTS IN A SPIDER DIAGRAM
1. Waiting times within legal limits (F)
2. Quick response if legal limits are exceeded (F)
3. Requests are formally correct (F)
4. Officials have sufficient expertise (C)
5. Inspections are well coordinated & integrated (C)
6. Response to questions within 3 days (F)
7. Available information is up to date (I)
8. Businesses are satisfied with public services (C)
9. Few objections and appeals (I)
10. Reduction of -25% Administrative Burden (I)
RED TAPE TO RED CARPET Department of Design | Cape Town | 09.07.2014
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
IMPROVEMENT PLAN
• Shows the strengthnesses and weaknesses in public services
• Improvements for:
• Government organization overall
• 10 most important products
• Not just “another” plan: it structures and incorporates all existing initiatives to improve
public services (catalyst)
• Action planning: results within 2 years.
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
QUESTIONS?
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
THANK YOU !
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RED TAPE CONFERENCE Western Cape Government | Cape Town | September 29 - 2014
SIRA Consulting
Edisonbaan 14G-1
3439MN Nieuwegein
+31(0)30 602 49 00
The Netherlands
Peter Bex
Michel Bloemheuvel
Western Cape Government
10th Floor Waldorf Arcade
80 St Georges Mall
021 483 9436
Cape Town
Michelle Ellis
Red Tape Reduction Unit of the
Department of Economic
Development and Tourism