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
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