1Reducing the business costs

Productivity Commission A couple of weeks ago it was reported in the press that an international survey of businessmen had apparently detected considerably more disquiet about the impact of government regulation on their businesses than about the impact of a war with Iraq. Here in Australia, the complexity of government regulations, and the costs of business compliance, were among the ten most important issues nominated by small business in an Australian Chamber of Commerce (ACCI) survey conducted prior to the 2001 Federal election. Respondents to ACCI’s quarterly Survey of Investor Confidence consistently nominate government charges and business taxes as major factors constraining business investment. It seems clear that business, whether big or small, has grievances with government regulations and charges, and those who administer them. Are they justified? What is being done about these issues? What more should be done? These are some of the questions that I will try to answer in this brief address. Business faces extensive regulation A useful place to begin might be to briefly map the regulatory landscape. In Australia today there are some 60 Commonwealth departments and agencies involved in making and administering regulations. There are a further 40 Ministerial Councils and national standard setting bodies directly involved in regulatory issues. Each State and Territory Government has its own similar range of regulatory departments and agencies. And the myriad of local councils have a major role in land planning, development, traffic and certain public health matters