Seminar on Regional Capacity-building :A Presentation on Regulatory Impact Analysis in Ireland

Tunis, Tunisia, 15 Feb. 2007

Tom Ferris Economist

Ireland

Content of Presentation

1. What is RIA ?

2. Where does RIA come from?

3. Why have RIA ?

4. How is RIA carried out ?

5. Are there RIA results available ?

6. Who should be consulted on RIA ?

7. Whither RIA ?

(1) What is Regulatory Impact Analysis?

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

It involves assessment of the impacts, side effects and costs of regulation

It includes structured consultation with stakeholders and citizens

It should be applied at early stage in the regulatory cycle – preferably before Government decides to regulate

It is not a substitute for decision-making but can help to inform policy decisions

RIA Can Help Identify…

All the relevant costs and benefits

Considers scope for ‘no policy change’

Alternative forms of regulation

Alternatives to regulation

Alternative implementation and design

options

Relevant proposals that merit examination,

while recognising that proportionality must be

taken into account

(2) Whence RIA in Ireland ?

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

White Paper, ‘Regulating Better’, Dublin, January 2004

Six Principles of Better Regulation Adopted

Action Programme for Better Regulation

www.betterregulation.ie

(3) Why Have RIA ?

To clarify justification for Regulation To assess alternatives (taxes, grants or

fines) To identify costs and benefits To facilitate consultation To ensure there is a full awareness of what

enforcement will be required To alert those who will be affected of the

compliance costs To ensure “no surprises”

RIA : Need to address Enforcement and Compliance

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?

(4) How to do RIA ?

Two phased approach used in Ireland:

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 and 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 the Screening RIA suggests:

Significant impacts on Economy (listed by the Irish Government in www.betterregulation.ie

Significant costs (initial cost of €10 million or cumulative costs of €50 million over 10 years)

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

And Full RIA involves ?

More detailed analysis of options More in-depth analysis of

impacts including in some cases Cost Benefit Analysis

Formal consultation, not informal Summary of pros and cons of

each option and identification of a recommended option where appropriate

(5): What Results ?

Draft RIA model developed in 2001

White Paper Regulating Better committed to

piloting RIA prior to its introduction in all

Government Departments/Offices

Five Departments agreed to pilot RIA

A Steering Group formed and economic assistance

provided

This piloting gave the first RIA results in 2005

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

A Simple RIA

On

“FITNESS”

Of Delegates

Tunis Conference15 february 2007

Tunis Conference Results of Simple RIA

Objective : To become fitter Alternatives: A lot; A little; No

exercise Costs: Energy used Benefits: Better blood circulation Consultation: Yes we consulted Compliance: You all complied Feedback: Good feedback

(6) Consultation a Priority

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

Government Commitment to Consult under RIA

Government’s 2004 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

Plan for Consultation

Decide what is purpose of consultation

What do you want to achieve / questions you want

answered

Who to consult and timeframes?

RIA can help to identify all stakeholders

How to make stakeholders aware?

Are outside experts or consultants required?

Compliance with legal obligations

Data Protection, Freedom of Information, Equal Status etc.

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) Whither RIA ?

RIA can further help to improve the quality of governance through increasing the use of evidence-based decision-making

RIA can help by enhancing the transparency and legitimacy of the regulatory process

But the introduction of RIA must first take into account local existing procedures and practices

There may be need for adaptation and adjustment to current structures and processes

For RIA to succeed…

High level administrative and political support

Development of RIA network for sharing of experience

and best practice

Ongoing liaison with EU colleagues especially Directors

of Better Regulation

‘Learning by doing’ – RIA very much an iterative process

Awareness-raising and training very important

Ensure sufficient resources

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

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