The Dutch Advisory Board on Administrative Burden (Actal) The Hague March 5, 2008.

The Dutch Advisory Board on Administrative Burden (Actal)

The Hague

March 5, 2008

Topics

Businesses Four criteria for success The proof of the pudding

Broadening the scope Citizens Public administrations Compliance costs Europe

Businessess

Good governance

Reducing administrative burdens for businesses is good for economy

25 % reduction policy results in: Labour productivity + 1.7 % GDP growth + 1.5 %

Businesses: four criteria for success Review of World Bank (2007) and OECD

(2007):

Dutch programme on reducing administrative burdens for businesses is world leading.

Four criteria for success: measurement, reduction targets for each ministry, strong coordinating minister, incorporation in the regulatory process

First criterion: measurement

Zero-base measurement

Standard Cost Model

Ex ante measurement (new regulation)

Second criterion: targets

Reduction targets for each ministry

Nimby

25 percent target works well as an incentive

Third criterion: strong minister

Ministry of Finance

Budget cycle (carrot and sticks)

Situation since 2007 (new cabinet): two state secretaries, still linked to the budget cycle

Fourth criterion: incorporation

Contain the flow of new regulation

Independent watchdog: Actal

NET target

The Actal Organisation

Independent watchdog, assessor and facilitator

Established in 2000: focus on AB for businesses

From 2005: AB for citizens too Final date: 1st of June 2011 Small organisation: 3 Board members,

13 staff

Assignment Bring about a cultural shift among

legislators and policy officers

“Policy officers should consider the effects for AB on their own initiative”

Method of working

The two main instruments are: - advise ministries on proposed

legislation - advise ministries on existing legislation

Also:Parliament (only at request)

- assess amendments Supervisory bodies Local government European Union

Are the administrative burdens quantified? Is the quantification correct? Are alternative options considered that may lead

to lower administrative burdens? Is the least burdensome option chosen?

Are arguments provided as to why a certain option was preferred and possible alternatives were rejected?

Is the least burdensome option chosen in implementation (enforcement) of laws and regulations?

Proposed legislation: Test criteria

Proof of the pudding - I

Dutch Programme AB Businesses

Since 2002 Before 2000

Measurement SCM, Zero-base No zero-base

Targets Net target, each ministry

Gross overall target

Coordinating minister

Ministry of Finance

“Economic Affairs”

Incorporation Actal; Ex-ante measurement

No check on new regulations

Proof of the pudding - II

Delivery of results:

Reduction plans from ministries Ex ante measurement of new

regulation Effect on AB matters for

decisionmaking Actual reduction of AB businesses

Broadening the scope: citizens

AB Citizens (since 2005) (Partial) zero-base measurement; SCM Reduction targets for each ministry Coordination by Ministry of the Interior Ex ante measurement and Actal

Cumulative burdens for target groups, e.g.: Disabled persons; Elderly

Broadening the scope: public administrations

The example is the education sector: Zero-base measurement; SCM Net reduction target Initiative of Ministry of Education Ex ante measurement; checked by Actal

Presently our cabinet aims to broaden the scope to public administrations in general (this is still under construction).

Broadening: compliance costs

Why?

Good governance Economy Bridging the gap between what

government does and what business perceives

Broadening: compliance costs

This is presently under construction It can be measured: probably a partial

zero-base measurement Probably gross reduction targets for some

specific domains Coordination by state-secretaries Finance

plus Economic Affairs Ex ante measurement; checked by

coordinating ministries or Actal

Broadening the scope: Europe

About 50% of Dutch AB originate from Europe Thirteen priority areas are presently measured Gross reduction target on priority areas [Fast

track proposals] (future ambition for net target?)

Coordination by commissioner Verheugen (DG Enterprise)

Flow: ex ante measurement for all new proposals (Impact Assessment Board)

About Europe

Joint position papers of NKR, BRC, Actal on European efforts

First position paper: 1 March 2007

Second paper: 19 Oktober 2007

Europe: some of our wishes

Measurement of the full Acquis Net reduction targets for each

DG Better ex ante measurement of

AB for new proposals Independent watchdog (High

Level Group: Stoiber) Truly independent Good mandate

Conclusions - I

Four criteria for success of the Dutch approach on administrative burdens for businesses: Measurement; Targets; Strong minister; Incorporation in regulatory

process.

Conclusions - II

Several opportunities to duplicate (broaden) the success: Citizens; Public administrations; Compliance costs; European union.

Useful websites

www.compliancecosts.com

www.administrative-burdens.com

www.actal.nl

Contact information

ActalP.O. Box 162282500 BE The HagueThe Netherlandstel: +31-(0)70-3108666e-mail: [email protected]: www.actal.nl