Quantity
over quality - Falcon tackles deregulation
The
Campbell government seems to confuse quality and
quantity. Premier Campbell's election platform
didn't promise better regulations, it promised
fewer. Kevin Falcon has thrown himself into determining
how to measure whether that promise is fulfilled.
So
just how does anyone measure the regulatory burden?
The Minister with the strange title devoted a
lot of his cabinet presentation to just that point.
After rejecting counting pages because bureaucrats
could simply use smaller type faces, he concluded
that all ministries should count the number of
"regulatory requirements". Unfortunately,
Falcon did not define "regulatory requirements".
Is
completing a form and signing it, two requirements
or one? You have seen forms on the Internet where
some fields are mandatory and some are optional.
Look for example, at the suggestion form on the
Waste Busters website. Detailed
instructions say boxes 1-3 are REQUIRED. Does
that make up three requirements, or just one for
the form? Little things like that will pose a
big problem for a policy that replaces serious
analysis with silly politics. Without knowing
what a regulatory requirement might be, Cabinet
adopted a policy that calls for eliminating two
regulatory requirements for every new one that
is introduced.
Cutting
red tape and reducing or streamlining regulations
is not new. The NDP had a website devoted to its
"streamlining
initiative". Ironically, the Internet
address that was devoted to the NDP initiative,
http://www.streamline.gov.bc.ca/,
now has been assigned to Falcon's deregulation
gig.
The
30 countries that make up the Organization for Economic
Co-operation and Development (OECD) produce two
thirds of the world's goods and services. The OECD
explains its concept of regulatory
reform on its website:
"In
OECD's work, regulatory reform refers to changes
that improve the quality of regulations, that
is, enhance the performance or cost-effectiveness
of regulations and related government formalities.
The concept of regulatory quality -- combining
deregulation, re-regulation and institution-building
with efficient social regulation - is the core
principle underlying the OECD's work."
Compare
the OECD approach (or that described in any of
its country specific reviews), with the cabinet
submission made by Kevin Falcon. By way of
background, Falcon's cabinet submission said:
"The
New Era commitment to reduce regulatory burden
in British Columbia by 1/3 is consistent with
global trends in regulatory reform and management.
The regulatory environment plays a key role
in competitiveness and economic prosperity.
Most Western jurisdictions have implemented
regulatory impact analysis requirements and
regularly review existing regulation."
While
the OECD spoke about enhancing performance or
cost-effectiveness of regulations, Falcon spoke
about numbers. For Falcon, it would appear that
reducing regulations is a goal in itself irrespective
of the consequences.
At
first blush the details of the policy the BC cabinet
adopted on new regulations, may look reasonable.
Look at the new policy before we go through each
component and ask the questions that no member
of cabinet raised during their staged meeting.
Actually, one cabinet member did raise a concern.
Judith Reid suggested the effort be monitored
in one or two ministries. Falcon strongly disagreed,
and suggested he knew best.
Cabinet
policy on New Regulations:
New regulation should meet the following criteria:
1) cost-benefit analysis should indicate that
there are net benefits;
2) competitive analysis;
3) replacement principle - cannot impose a new
regulatory requirement without removing two
requirements;
4) shift in approach to results-based regulation
based on scientific evidence where possible,
and the use of market incentives where feasible;
5) plain language;
6) sunset provision;
7) eliminate duplication or overlap with other
jurisdictions; · developed in a transparent
way so that interested parties have an opportunity
to present views;
8) reverse onus - ministries must justify the
need for regulation; · timeliness.
1) It doesn't take a high priced Deputy Minister
to realize that a regulation should have a net
benefit. The OECD emphasis is on cost-effectiveness.
There is a big difference between having a net
benefit and being the most efficient of those
alternatives that realize a net benefit.
2)
Competitive analysis probably means looking at
other jurisdictions. We can only hope that look
involves looking at consequences, e.g. deaths
from hazardous substances such as second hand
smoke, and not just at compliance costs.
3)
The two for one replacement principle is bizarre,
and it reinforces the impression that only quantity
of regulations matters. Why would something like
eliminating the need to sign a form, and get a
license be a tradeoff for a pub posting a no smoking
sign?
4)
The emphasis on results based on scientific evidence
is language from those who lobby for changes to
the Forest Practices Code. It's a good slogan,
but to be a good policy it is necessary to spell
out the consequences of negative results. If a
company is not financially able to pay for full
restoration if a salmon stream is damaged, should
it first post a bond to guarantee positive results?
5)
We all like plain language. The Campbell government
could start by offering a redraft of its New Era
document so the public could see in plain language
what it is going to do. We still don't know how
essential services in education will work. No
one knew that lowering the bottom tax brackets
meant a $750 million per year cut in the top tax
brackets. And we still don't know in plain language
what a regulatory requirement is and how the tradeoffs
between those eliminated and those added are to
be determined.
6)
Some regulations, like a requirement to stop at
red lights, need never expire. Rather than separating
such obvious examples, Minister Falcon said "All
new regulations coming forward in this province
will have a sunset provision, meaning that after
a certain prescribed period of time, those regulations
will expire." All is probably going
far too far.
7)
There is nothing wrong with eliminating duplication,
but which jurisdiction should back off? Under
Falcon's rule, the province might abandon any
field in which the federal government adopts a
regulation.
8)
Finally, Falcon stressed that the ministries must
prove the need for regulations. How does he think
it has worked before he came along? Then again,
maybe he thinks that regulations get rubber stamped
the same way his cabinet submission was treated.