A little knowledge of regulatory systems is a dangerous thing

15/05/2023

Some people out and about demonstrating a little knowledge of regulatory systems is a dangerous thing.

I am not a regulator, but I have prepared policy advice that had to be turned into regulatory policy and, eventually, rules. I also help design regulatory funding models; clients ask me to review them for fairness and equity. And I am pretty well-read on regulatory institutions.

So, with that in mind, here are some links for those of you who want to discuss the issue. I have kept them high-level for first-time readers:

First, a context piece. From Derek Gill. The questions he raises are still relevant. He reminds us that regulation is contentious, its effect uncertain (no matter what the economists tell us – oh, to have the confidence of an economist without any baseline data), and advice and analysis are very difficult. https://www.regulatorytoolkit.ac.nz/resources/papers/book-2/chapter-15-applying-the-logic-of-regulatory-management-to-regulatory-management-in-new-zealand

Second, a link to the research by the Chair in Regulatory Practice at VUW. It’s a series that informs practitioners on developments in the regulatory literature. It covers theory to practice and offers critical insights. https://www.wgtn.ac.nz/chair-in-regulatory-practice/research-papers

Third, a link to the Productivity Commission’s inquiry into regulatory institutions and practice. Still pertinent. Many of the submissions are outstanding. It is the best diagnosis of the current problem. Ps: They did not recommend machinery of government change. https://www.productivity.govt.nz/inquiries/regulatory-institutions-and-practices/

Here’s some more applied research into regulatory practice across several sectors. This page alone addresses many of the online reckons and vibes: https://anzsog.edu.au/partner-with-anzsog/regulators/regulatory-resources/

For those who don’t care for regulation, here’s some reading for you: https://pikeriver.royalcommission.govt.nz/

https://canterbury.royalcommission.govt.nz/

https://www.abuseincare.org.nz/

You’re welcome.

Finally, if you don’t think our regulators take this seriously enough, contend with this: https://www.mbie.govt.nz/cross-government-functions/government-regulatory-practice-initiative/

There is always room for improvement. But you cannot say our regulators are not working hard within the limitations of their roles and investments.

But my worry about the proposal floated yesterday is how it further undermines the public management system.

Our 80s reforms decentralised the way the state organised service delivery. There were upsides and downsides. The upsides for me were the entry of Iwi and Māori service provision. The downsides were we hollowed out the state and left many rural, remote and some provincial towns without public services.  

The proposal to establish a regulatory ministry enables ministers to reach deeper into the affairs of our decentralised regulatory bodies.

It confuses accountability and responsibility, and it allows the politicisation of rules.

If you want to improve this space, invest in it. Start by lifting the quality of parliamentary oversight. Urgently lift the quality of ministerial demand for good analysis and advice that can be turned into good regulatory advice and rules. Make the regulatory profession as important as the policy or managerial profession. Ensure regular reviews and evaluation of impact using all the tools.