Ministry of Economic Affairs | 11 April 2013

Stefan Koreneef andDimitri Verhoeven

Ministry of Economic AffairsDirectorate-General for Enterprise and Innovation

Regulatory Reform and ICT Policy Department

Seminar Advancing Smart Regulation

Regulatory burden reduction initiatives in the Netherlands

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What is the definition of regulatory burden?

Negative (side)effects of regulation which leads to • Time, Costs• Irritation• Negative image of the government

Approach (for businesses) especially from a economic point of view:• Less costs for businesses• More economic growth and competitiveness

Netherlands Bureau for Economic Policy Analysis (CPB)-calculation: 25% less administrative burdens = economic growth of 1,3%.

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History regulatory burden policy (1)

In 2002 we started with a 25% reduction of administrative burdens

• Method: Zero-base measurement with the Standard Cost Model (SCM), target, central coördination and external watchdog (Actal)

• Approach copied by other EU-memberstates, the OECD and the European Commission

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Top of the iceberg

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History regulatory burden policy (2)

Approach broadened through the years:

Less administrative burdens

Less compliance costs

Less inspection costs

Improved and digital public services

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Targets on regulatory costs

2002 – 2012

• On administrative burdens in %• Possible by using zero base measurement• On compliance costs in €• No zero base measurement available (too extensive, too complex, no

support)

2012 and coming years:

• On administrative burdens and compliance costs (combined) in € • Because of:

- No zero base measurement on compliance costs available- No current zero base measurement on administrative burdens available

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Program regulatory burden for businesses 2012-2017

• Structural netto reduction of regulatory burden € 2,5 billion for businesses, citizens and professionals

• Together with stakeholders in at least 15 heavily regulated sectors we will examine perceived problems and find specific solutions to lower company costs and improve competitiveness

• More use of ICT solutions (Company file)

• Reform on inspections – joint effort with municipalities – reduction of inspection costs

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1. Reduction of regulatory burden by€ 2,5 billion

• For businesses € 2,1 billion (Ministry of Economic Affairs)- € 1,2 billion on progress report businesses

- € 0,5 billion by making use of ICT- € 0,4 billion?Measures of 0.4 billion include the customized approach, the abolition of the timesheets declaration, the review of environmental law and simplifying the building regulations.

• For citizens and professionals € 0,4 billion (Ministry of the Interior)- € 0,1 billion on progress report citizens- € 0,3 billion on new measures for citizens and professionals

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Prevent new regulatory burden

• The reduction of regulatory costs by € 2,5 billion is a netto target.

• The Ministry of Economic Affairs checks the regulatory effects before discussion in the council of ministers.

• Risk-files will be put on the agenda of the council of ministers.

• Inevitable increase of regulatory burden have to be compensated by the ministry concerned.

• The implementation of new measures in practice can be a risk for achieving the targets of the coalition agreement (for example financial sector)

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2. Customized approach on domains wich are important for the economy (1)

• Government, businesses and stakeholders will cooperate to find solutions concerning the reduction of regulatory burden.

• The customized approach implies the use of all available instruments to reduce regulatory burden, to simplify inspections and public services and to remove impediments to growth and innovation.

• Start 1st fase in spring 2013 with domains mentioned in the coalition agreement (CA: banks, chemistry sector, logistics, agriculture & food, life sciences, construction and health sector).

1st result in pilot chemistry sector: 15% of all production costs are regulatory costs

Customized approach on domains wich are important for the economy (2)

• Selection 2nd fase (start spring 2014) in cooperation with the Confederation of Netherlands Industry and Employers, the Dutch SME-Association and Actal.

• The responsable ministry has to take the initiative to draw up and excute the action plan.

• The Ministry of Economic Affairs coordinates domains for businesses.

• The Ministry of the Interior coordinates domains for citizens and professionals.

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3. Improving (digital) public services • Poor public services cause irritation and costs for businesses.• Examples: long waiting lists, deliver data and information several

times.• Approach necessary for noticeable reduction of regulatory burden.• Digitising is a powerful instrument. • Legislation for the right of doing business with the government

electronically for citizens and businesses • The municipal public services will be stimulated by a customized

programme for municipalities (‘Beter & Concreter’), the covenant smarter cities, the Mark of Good Public Services and by participation in the local regulatory burden-test.

• In case of the digital company file, businesses can deliver their information only once.

• A one-stop-shop for doing business with the government. http://www.youtube.nl/watch?v=NIVjuS8fqM4&feature=plcp

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4. Smarter inspections: close cooperation of inspectorates

• Inspectorates (national and local government) will cooperate intensively and closely to reduce inspection costs.

• Improving the information-exchange between inspectorates and between inspectorates and businesses (company file).

• Customized approach to reduce inspection costs.

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State of play: regulatory burden

Local and regional governments• Covenant Smarter Cities

- Smarter use of ICT• Customized programme for municipalities (‘Beter & Concreter’):

- Improving implementation of legislation- Reducing inspection costs- Improving Public Services- Regulatory burden-ambassadors

Europe• Regulatory Fitness and Performance Programme (REFIT)

- Start: 2014. • The High level Group of Independent Stakeholders on Administrative

Burdens (‘Stoiber-group’) representing the businesses- Reducing regulatory burden by independent “watchdogs” (Actal)

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Burning questions