Streamlining Local Government Regulation

BRUCE McCLURE, General Manager of the CMPA, comments on the inquiry by the Victorian Competition and Efficiency Commission and subsequent State Government response into streamlining local government regulation.

IN August 2009 the Victorian State Labor Government directed the Victorian Competition and Efficiency Commission (VCEC) to conduct an inquiry into streamlining local government regulation.

The Treasurer at the time John Lenders MP stated that “It was now timely for a comprehensive inquiry to examine the scope for further streamlining of regulation and processes administered by local government and that impact on business. This inquiry will build upon and examine the scope for further rolling out of – existing reform initiatives, with a view to continuing to improve Victoria’s regulatory system”.

The following scope was set for the inquiry –
The Commission is to inquire into and report on:

1. Impacts of regulations administered by local government on business, including small businesses such as home based businesses;
2. Scope for streamlining and harmonising the practices adopted by local government to administer State Government regulation, and options for both levels of government to support best regulatory practice;
3. Inconsistencies between councils in local government regulations and in practices for their administration, and options for greater streamlining and harmonisation of regulations and their administration;
4. Regulatory impediments to small and medium enterprise (SME) access to procurement associated with major infrastructure projects and options for removing these impediments;
5. The extent of costs incurred by local government in administering regulation, and options for councils to reduce these costs; and
6. An estimate of overall economic impact (including reductions in the regulatory burden on business) of options identified in this inquiry, including any incremental benefits to existing reforms being progressed at Commonwealth or State level.

The emphasis in the inquiry should be on administration of regulations by local government rather than on a direct evaluation of legislative frameworks themselves.

The structure of local government and performance of individual local governments are outside the scope of this inquiry.

A total of 37 recommendations were made by VCEC in their final report which they believed would improve local government regulatory frameworks and processes, with particular emphasis on streamlining local government regulation. The current State Government has considered the report and made the following comments.

The Government is supportive of the general direction of the VCEC report and has also taken the opportunity provided through the response to consider related policy improvements. The Government’s response therefore forms part of a broader package of reforms that will include implementing the recently announced Government response to the Victorian Planning System Ministerial Advisory Committee recommendations.

Actions to be undertaken as part of this response are expected to assist local governments across Victoria to deliver on both state and local objectives. In particular, planning and building regulation and regulatory processes will be streamlined, minimising uncertainty and delays for businesses and the community.

Savings to businesses fr om implementation of this response and related reforms are expected to make an important contribution to delivering the Government’s commitment to reducing red tape by 25 per cent.

The State Government responses to the VCEC recommendations are very detailed. If you are interested in reading the actual reports and government response the following link will take you to the relevant report, http://www.vcec.vic.gov.au/domino/web_notes/vcec/vcecweb.nsf

As we are all aware there have been numerous inquiries and reports on streamlining regulations for many state departments and authorities. The current State Government has a stated policy of reducing red tape by 25%. Only time will tell if this aim is achieved.

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