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Talk Openly: Better Regulation Forum with special guest The Hon. Lindsay Tanner MP

SPECIAL EVENT: Monday 13th - Friday 17th October '08

The Hon Lindsay Tanner MP, Federal Minister for Finance and Deregulation, is our guest blogger as part of this interactive, online discussion forum on

BETTER REGULATION

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Lindsay Tanner"As Australia's first Minister for Deregulation, I'm interested in hearing new ideas and innovations, including better use of information technology to enable continuous regulatory reform.

The Australian Government has committed to an ambitious deregulation agenda that will both increase Australia's economic productivity and make life easier for its businesses and citizens.

However, it is clear that better regulation is not always less regulation.

I encourage you to submit your comments, questions and suggestions on Better Regulation via this interactive discussion forum."

The Hon. Lindsay Tanner MP

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Are you an expert or specialist in your field? Do you think you understand the needs of your industry better than the government? Are you tired of dealing with archaic laws that are no longer relevant? Or, are you working with emerging technologies which the law hasn't understood yet?  Are you an "ordinary" citizen with some extraordinary ideas for better regulation?

Then this is your chance to get directly in the Minister for Deregulation's ear! 

We talk a lot about the need for politicians to "stay in touch".  Minister Tanner has expressed a desire not just to talk, but to listen and reply to your ideas. 

We're looking forward to hearing what you have to say. The BETTER REGULATION forum opens on Thursday, 9 October 2008. Participation is simple and free. If you aren't already, sign in to become an Open Forum member. Write your comments, questions and suggestions using the "Post a comment" link below.

The Hon Lindsay Tanner MP will be personally responding to submissions from Monday, 13 to Friday, 17 October 2008.

Open Forum will then continue to follow how some of your ideas can be turned in to BETTER REGULATION.

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Recommended Reading

The Minister for Finance and Deregulation, the Hon. Lindsay Tanner MP, announced today that the Rudd Labor Government has invited the Organisation for Economic Co-operation and Development (OECD) to conduct a review of Australia's current processes and settings for regulation making and review. Building on the Government's ambitious deregulation agenda, the Regulatory Review offers an opportunity to further improve the quality of Australian regulation. Better regulation helps build the nation's productive capacity and create a stronger economy.

www.financeminister.gov.au

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Lindsay Tanner's picture

Starting a conversation...

Below are just a few questions to start discussion:

1. What lessons can we learn from good regulators?

2. How could regulators use technology to regulate better? What are the barriers to its uptake?

3. Do you know of examples where alternative regulatory systems such as self regulation, co‑regulation or standards have delivered better outcomes than a traditional command and control model?

I will be logging in daily next week to participate in the discussion and look forward to talking with you.

Regulation and small business

After 23 years I sold my small business last year, the fact I sold a small business I suppose is evidence that my achievements were modest however since getting started in the mid eighties, weathering the storms from the recession in the early nineties and enjoying the wonderfully inventive period as the internet emerged I do have plenty to reflect on to try and come up with ideas to improve regulation for small business.

Compliance for me, as a small business operator, was always a worry because I didn't spend much time thinking about it or ensuring that what we did was complying to government regulation. My focus was on using the emerging technologies of the Internet creating tools and applications to provide better ways of working, learning and living! That was infinitly more exciting.

Regulations came to my attention when they bit me in the bum. The best example is around unfair dismissal laws. To establish my credibility in this area in 2000 my company Acumentum was recognised by the AFR and AGSM using the Hewitt survey assessment as one of the Best Employers (top 10) employers in Australia employing less than 1000 employees. The only small business to be so acknowledge in the 10 years these awards have been run.

When the dot com crash came and our business opportunities retracted in 2002 whilst I didn't have to retrench anyone I did reduce our team by not replacing those that resigned. I began some discussions with one individual who only recently had gotten through our 3 month trial period about the situation and he suggested he had another opportunity for a 6 month project and could take that but he would really like the opportunity to come back as "we were such a good place to work". 12 months plus 3 days after he joined us I received a letter from him asking for his job back or in lieu of that a retrenchment package which he had in the last 3 days qualified for! I quickly became an expert on retrenchment law. He was right on the regulations but his behaviour was bad.

The purpose of regulation is to ensure appropriate behaviour. Clearly with examples such as the one I've described regulation often permits and protects inappropriate, unethical or bad behaviour.

When all the people in the village know each other well the behaviour of the villagers is regulated by their desire for support and respect of their community. In large annonymous communities bad behaviour is often protected and subsequently rewarded. The emerging internet technologies can help manage reputations, as in the village, and punish bad behaviour by informing parties to a proposed transaction of the established behaviour patterns of the other party. Effective reputation management allows us to reduce the amount of regulation to focus on the need for good behaviour.

In such robust environments where all participants have a clear understanding of how things operate and what consequences are attached to their actions a light touch regulatory environment can work. Where there is complexity and derivative financial products containing sub-prime mortgages are an excellent example, the consequences are not understood and in these situations light regulation will produce a calamity.

I would like to see the government take the excellent work done in Victoria with the Office of Small Business and develop a national small business advisory service that provides excellent, productive tools to get things done (employ new people, open up export markets etc) and because the tools are well designed compliance with regulation is a by product of the way the task was done not the focus.

Russell Yardley

de-regulation, re-regulation and strategic regulation

My interest in the debate surrounding regulation is perhaps a little philosophical. I understand the Minister's committment to streamline regulation across the different states, to make it easier for businesses to grow and prosper, however I question a committment to de-regulation as such.

As we're seeing from the current global financial malaise, it's short sighted and quite frankly irresponsible for governments not to regulate the private sector. Especially those sectors of the economy on which we all depend. It is important for governments to set standards for the amount of credit banks can provide and the solvency of the individuals to which that credit is provided, just as it's the use of chemicals in agriculture, a base level of wages accross the community, a base level of education to which we all should reach regardless of economic circumstance and so on ...

My concern is that regulation has become a negative concept within the economy because we focus on poor regulation whilst not recognising the successes of our regulatory system. For all its faults Australia is a progressive, strong economy, where most people have access to the basic necessities of life, and most good business ideas have a chance to suceed. This is all due to good regulation, and good managment.

A CEO implements rules, projects and practices within a company in order to be successful and productive, and the goverment, especially the Federal Government should do the same at a macro-economic and macro-social level.

While it sounds cheeky I'd encourage the minister to change his title from minister for de-regulation to minister for strategic regulation, because while I agree there are many areas where regulation needs to be changed, updated and streamlined, regulation itself is not the enemy here.

Poor regulation is the enemy.

Thank you for participating in this forum, and I'm looking forward to reading the minister's response.

Innovation in Regulation

I note that the focus is on blogging which, especially for the younger generation, is very much old hat. The Minister may consider the use of Web2 technologies to develop regulatory responses from "the bottom up". For example:

- groups of people could be asked to participate inside a closed virtual space in the form of audio, textual and video based conversations

- teams of people could address specific industry regulatory proposals within (say) a 24 hour period using instant messaging

- the government could set up a "second regulatory life" site in which impact scenarios are developed and animated.

I would suggest that the days of White Papers, press based 'balloon' flying and blogging perhaps need to be considered in terms of a multi-channel approach to regulatory development and citizen participation.

All the best!

Second Track Processes Part of the Answer

Just quickly, I have a few immediate thoughts about the three questions Minister Tanner has raised.

The lesson that governments need to learn from good regulators is to be adaptive. Regulators need to be ready to change when necessary to stay connected with society.

The vision, or intention, of any regulation will only translate into an actual outcome when the vision, settings and incentives are aligned.

Regulators should use technology because it provides marvellous opportunities for stakeholder engagement, particularly online collaborative processes. The main barriers to uptake are transparency issues, rules of engagement between public servants and the regulated entities. To be effective, people need to feel confident there will be a genuine, two-way dialogue that can occur within a reasonable timeframe.

Second Track processes have demonstrated a capacity to produce better outcomes in many instances than the traditional command and control models. Global Access Partners (GAP) has initiated a number of second track pilots in fields such as urban water, philanthropy, health and many more, which have produced some remarkable results.

To read more about how second track processes work, click here.

To read more about why I think they are so important please see my blog The 'Second Track' Process: a Civil Solution.

Peter Fritz

How could regulators use technology to regulate better?

I would have thought the simple tools of e-democracy would have been a good start. This exercise by you on openforum is part of the solution.

Most regulators produce long and complex regulatory impact statements and consultation documents. Even if simple questions are asked, the interested party needs to wade through chapters to get to the simple questions. Generally, people are asked to make a submission. Hence, even the most controversial and/or interesting regulatory issues receive a few dozen submissions from representative organisations. If large numbers of submissions are made, it is is generally in the form of a "form letter."

If you want continuous improvement, you should stimulate the interest of people who are not particularly interested in public policy processes but have expertise in a field or could be stimulated to turn their minds to an issue for a short period. Ask short questions and be happy to receive short answers. The answer may be short but it may reflect a lifetime of experience and wisdom.

The web, email and sms are ideal tools to get that input. Get guidance from the more advanced field of e-education where some smart lecturers ask simple questions but require their students to pass through information rich pages before giving the answer.

Lasty on this point, you need to create greater performance hurdles for those receiving the consultation responses and processing them. A few years ago, I asked two public servants why they had failedd to accept the advice of the Real Estate Institute of Victoria on removing excessive prescription in a Bill. They replied that it was a "self-interested" submission and that they had ignored it. Of course it was self-interested but based on experience and wisdom and refusing to accept their advice probably imposed tens of millions of dollars of compliance cost on the people of Victoria.

Lindsay Tanner's picture

Defining the Rudd Government's deregulation agenda

Thanks for your early comments

Douglascomms, while I won't be asking the Prime Minister for a change in title, I agree with you that deregulation is more sophisticated than simply trying to cut down the number of regulations on the books. We want better regulation. In some cases this will mean getting rid of outdated, unnecessary regulation, but in others the focus will be on improving the existing regulation.

The recent global financial turmoil has highlighted the importance of having good regulation. Australia's strong prudential regulatory framework means that we have very well-capitalised financial institutions. The four pillars policy, which promotes competition between the banks, is more important than ever.

Another part of improving regulation is to make sure we have regulation which is fit for purpose. As Russell points out, in markets with high levels of transparency or repeated interaction models of self or co-regulation can operate effectively. For example, the UK ‘Scores on the Doors' program makes the results of food hygiene inspections publicly available, encouraging consumers to vote with their feet rather than relying only on administrated penalties or sanctions.

In other markets where the consequences of non‑compliance are very serious (for example, aviation safety) prescriptive regulations with serious penalties for breach may be more suitable.

Russell, I was also interested in your comments about how small businesses become aware of regulation. The Victorian model you mention sounds interesting and I will look at this in more detail. It sounds quite similar to the new Business Enterprise Centres we announced in the 2008-09 Budget. These centres are designed to operate as one-stop advice shops for small business.

One thing I am investigating is how we can reduce the compliance burden for business, especially for small business, by making it easier to find out which regulations apply to your business and when new regulations are coming into force. Are there other small business people out there who think this would be useful?

Michael, thanks for your comments about ways we could fully utilise Web 2.0 tools. As part of the online consultation trials I am hoping we can do some experiments with crowd-sourcing along the lines you suggest. I'd be interested in what others think about these options.

Thanks again for your detailed comments. I will be logging back in tomorrow and look forward to further discussion throughout the week.

Regards

Lindsay Tanner

national small business advisory service that provides excellent

Russell Yardley makes an excellent point on setting up a "national small business advisory service that provides excellent, productive tools to get things done. "

His point goes well beyond regulation and complaince. There are very few services providing objective quality advice on appropriate hardware/software tools for small business.

On regulation, every regulator imposing a new burden should be required to check the market for compliance tools, ensure that prooducers of such tools have notice of the change and where necessary ensuring that new forms and templates are tested by the potential users.

The Minister may consider the use of Web2 technologies

Michael Gill makes an excellent point "The Minister may consider the use of Web2 technologies to develop regulatory responses from "the bottom up".

Facebook and the like for most Ministers are push rather than pull.

Continuous improvement requires continuous inflow of ideas and we should harvest the ideas as people think of them rather than in the confined time-lines of consultation.

Try to reduce the frictional cost of policy input. The good idea thought of "on the road" and smsed or the like can now be harvested and used with automated response and utilsed when the policy process permits the resources to be allocated to the idea or set of ideas.

The challenge is to to set up active communities of interest.

If Government as a recipient of ideas notes related concepts across Departments, it could invite several correspondents to produce a brief to the Minister with minimum public service resources. The pay-back for participation is a meeting with Minister or head of department to present the idea for follow-up or reaction (negative or otherwise).

The Second Track Process is a good model for implementing/modelling/institutionalising this.

Better Regulation

The prospect of better regulation brings to mind the image of a child wandering among the show bags at the Easter Show: where do we start?; how many can we get?; when can I eat?; can I have (fix) that one? and that one too ... please?

It seems to me that opening the debate beyond those who are consistently consulted already immediately has the potential to stimulate innovation in regulation. Hence, congratulations on the initiative. I suppose I have a history of being someone who tends not to rush to technology as a solution, but seeks to have the solution identified and defined, and then looks to determine the best technology to support the solution. I think that is a plan worth considering here.

While all regulation is worthy of review and I think almost universally must have potential for improvement, the 80/20 rule needs to apply. It is essential that the process be layered to first identify areas of regulation that have the greatest potential to be improved. Then one can open the conversation to seek innovative ideas to effect improvement, and that will bring debate on the benefits and disbenefits, and then one might ask regulators to come up with a proposal that meets the objectives proposed, and takes some of the best of the innovative ideas ... and so on.

I'm inclined to suggest a process that looks a little like one we are using to consult with a very broad cancer care community in health, adopting wiki technology layered by levels of expertise and authority, to get comments on clinical and care guidlelines from a broad range of interested parties, while ensuring that the final outputs will be reviewed by the most expert of stakeholders who will have to make some decisions on an end product that best reflects both science and community needs and views.

The important thing about this broad consultative process is that there needs to be someone there to really listen. Having been a regulator, it seems to me that the guardians of regulation (usually those in the bureaucracy) almost have a reflex response that should anyone challenge the absolute "rightness" of any regulation, walls go up and defensive posturing occurs. If you really want to have someone listen to comments such as this, the filter needs to be someone with a good knowledge of the subject, but without a vested interest in the status quo (e.g. bureaucracy) or in reducing oversight with a constrained sense of responsibility for the effects on safety and community protection (e.g. commercial interest). Then you can filter ideas and give it to those with the job of preparing regulations to work out how to apply the ideas - not just to justify why they shouldn't be applied.

If anyone is looking at a place to start making regulation better, I'm happy to nominate the area of health technology assessment, where various arms of regulation all function independently, creating excessive bureaucracy in bringing new technology into general use, while at the same time allowing for quite large gaps in having a system that ensures Australians can rely on safe, effective, cost-effective technology in the healthcare setting. In the end, citizens pay for inefficient processes but also have a cost in having less than optimal safety and efficacy.

That should be enough for one blog. But feel free to ask me to elaborate on any of the above. Don't want to bore anyone but grateful for the opportunty to express an opinion.

Stan Goldstein

Better Regulation:

First of all, it is good to see a Minister want to participate in a forum as opposed to being pushed into it.

Let me first set the scene - at the moment I am sitting in my office trying to come to grips with a document nearly 400 pages long that talks about a new compliance framework and why it is better for a particular Government Department as opposed to the citizen or its service market. No, it is not an Australian Government Department. But it provides the impetus for the following thoughts:

For those who were able to attend the recent GAP Congress on Regulatory Affairs you would have taken heart in the work of Gail Greenwood and the Government of British Columbia where there has been a commitment to reducing regulation and red tape. In many ways, the Government and Institutions of Canada are very similar to those of Australia where we have various layers of Government from local authorities through to States and Provinces ultimately governed by a form of Federation. For those unable to attend the conference let me sum up the presentation by saying an Opposition, as part of its election campaign, wanted to reduce red tape and regulation, stimulate growth through friendlier and easier business terms tied together with transparency and openness.

The Opposition went on to win Government and the British Columbian experience is now part of the public record. In Australia we have an opportunity, through the commitment of the Minister and the current Government to implement something similar. The questions however need to be how, who, by when, who leads it and who needs to sign up to it to ensure it is a success. In doing so, we need to recognise that there are two fundamental forms of regulation. The first is domestic regulation and un-cluttering the myriad of duplication that exists between the Local, State and Federal layers. Everything from simplifying car and truck licenses to aligning standards for teacher registration. Bio-security and payroll taxes, translation of State awards into National awards and the removal of barriers that hold back business investment.

The second major category of regulation generally governs global markets or those sectors that are impacted by global trends, the international business system etc. Such regulation can be seen in the recent financial crisis that has gripped the global market and how different countries tend to deal with issues independently or as a group. There are regulations for regulations, systems for systems and red tape for blue tape. We also tend to categorise regulation dependant on segment, industry or sector - over the years, as this has developed and individual regulators and agencies have taken on responsibility for each specific area, regulation becomes disconnected from itself. For example, as we saw with the collapse of HIH each of the regulators who had a stake in that segment of the market HIH operated in, weren't always around the same table. As we have seen with the current global financial crisis the regulators across the world came together because they had to - not necessarily because they felt, prior to the crisis, that there was a need to.

As the Minister points out - we want better regulation. We need to keep something pretty important in mind and that is simply this - at the moment there is a discussion on how much we need to do to lessen regulation from a business perspective. Yes, there is the obvious economic argument that with less regulation and compliance costs, the more business is able to spend on employment, or it can be the impetus for increased business investment in the economy or sectors of the economy - benefits of which flow through to the community. The thing we tend to forget, however, is that for the vast majority of Australians they don't necessarily understand the regulatory framework or the implications of less versus more (let alone the benefits).

If you were to ask a taxpayer in the suburbs of Western Sydney or my own suburb of Redfern if more regulation on financial institutions as the result of the current financial crisis was a good thing, they would agree. I dare say the banks and industry may disagree. Herein lies the missing link for all of us - and that is the firm understanding that at the end of the day we need to engage the citizen in the discussion and the solution. That rightly brings me to the attractiveness of the Second Track Process that Peter Fritz advocates. Finding a medium that provides a balance between the needs of business and industry and the needs and demands of the citizen. Of course there is the political reality in all of this and that is the citizen elects the Government, not business and industry.

So, let's explore some of the questions the Minister poses and then proposition a few more:

1. What lessons can we learn from good regulators? First of all, Australia now has some of the best regulators in the world. That said, they have developed more as a result of baptisms of fire than through natural evolution. HIH is a good example. That said, we have still got a way to go when it comes to engaging the citizen into the world of regulation and what it means for them. In 2002 I chaired the Global Knowledge Management Conference at which I asked a good friend of mine to speak on the subject of Energy Regulation and Information Management in the United States. His name was William Bennett and he was the Chief knowledge Officer of the United States Federal Energy Regulation Commission. FERC for short. The challenge was not only managing knowledge internally to ensure best practice and better regulation, it was also providing that knowledge and information to the citizen. Now, six years later, the FERC website is an example of what Australian regulators can learn in terms of interaction with the citizen.

The site, www.ferc.gov, is targeted to both business and the citizen, there are forums for interaction, knowledge repositories and data stores. Access to hotlines, rules and regulations - ASIC has some of the functionality, but not all. In the bottom left hand corner is a section specifically for the citizen, links to guides, projects near you and informing people of their rights. Regulators need to think outside of the square - the ASX for example is not servicing business alone - therefore, be more inclusive. Our regulators could learn a lot from FERC. I should say when I led the Knowledge and Information Management Review of the former Australian Communications Authority in 2003 a lot of great best practice ideas came from FERC!

Question: isn't about time we thought outside the box we live in? What FERC may do could be relevant to ASIC or the ASX in terms of its aim and intent when it comes to communication - maybe we need to break down the barriers that have built up separating individual regulators and therefore there thinking. Why is that whenever we want to learn something new, we feel the need to go to another regulator in our industry to get the best practice?

2. How could regulators use technology to regulate better? What are the barriers to its uptake? Yes they could - the FERC is the best example. The barriers are, as always, cost and time - but there is a third, understanding. Regulators need to understand how, who and why people interact with them. This is, again, the whole notion of push as opposed to pull - something Victor references in response to web2 technologies. At the moment I am reading through a recently published document from a Government (let's just say a Government in a land far, far away - and no its not here or across the ditch). The document talks about the development of a new online portal where the Government can interact with its citizens - the reality hasn't quite hit this particular Government yet, but the last time they tried this approach there was no time taken to understand who interacted with them back. Instead, I am half way through a review advising them that maybe, just maybe the people who do interact with the Government are mainly recipients of benefits and pensions and therefore cannot afford a computer and internet connection in order to interact back - so, how do we get them engaged? We take technology to the communities where they gather and we develop portals that provide information that is easy to understand and navigate. Technology, however, is not the only solution - content is the real hidden gem.

Question: here's a novel thought, lets establish a Commission for the eCtizen. A forum that brings together a raft of information and knowledge into one single repository. An repository who's construction is guided by the citizen, informed by the citizen and therefore with the citizen in mind. Underpinning this could very well be a range of formal processes and a combination of Second Track.

Question: can the software development companies stop making the pitch for why there software is world changing and the best thing since sliced bread? How about we look at the question in reverse - how can technology companies build better software to help regulators better inform business and the citizen - think collaboration platforms people!

3. Do you know of examples where alternative regulatory systems such as self regulation, co‑regulation or standards have delivered better outcomes than a traditional command and control model? First of all I need to say that I am a product of the New Zealand social and economic experiment of the 1980's and early 1990's. My Gough Whitlam was David Lange. Many people believe that for better regulation there is no closer place to look than New Zealand. What people forget is that New Zealand's environment was established out of a pressing need - to keep the country from going under. It took more than a decade of reform by a raft of ideologically opposed Governments all faced with the same dilemma. Some would argue that the economic and regulatory reforms went too far, David Lange also lamented that maybe the Government should have paused for a cup of tea. Some would also argue that New Zealand has been too far gone for too long and it is now in need of "pull back" reform. The school sector is one example of this where education and its management was devolved in the late 1980's and early 1990's. Called "Tomorrows Schools", management, education policy, curriculum and qualifications were all unravelled and the day to day operations of public schools were handed over to elected parents on Boards of Trustees. Nearly twenty years on there are schools in the far north of the country whose members are unemployed and the school is in debt. Deregulation of the banking system has bought problems as has deregulation of social services and mental health. That said, there are shining lights - the Australia and New Zealand Food Standards organisation is one example where consistent regulations and best practice are in place.

My point is, Australia needs to find a balance between the interests and needs of business and those of the citizen - also, a happy medium between consistency in regulation when it comes to regional standards. I remain an ardent advocate of Standards Australia and have for many years - even though I have never said so publicly let alone behind closed doors. An improvement could be made to the consistency in education and employment standards between Australia and New Zealand - the old Ministerial Council for Education, Training and Youth Affairs could be improved.

So, sadly, it is back to my 400 page document, then turning my thoughts on how to diplomatically inform this particular Government that sometimes just because it's 400 pages doesn't mean it is meaningful....to anyone other than the expensive consultants engaged to write it in the first place. Such is the work of a militant self regulator who is a product of the New Zealand Social and Economic Experiment.

Lindsay, I wonder, where would you place the Lange years in the greater context of the history of the Labour movement?

Matthew Tukaki, Director of Government Policy & Strategy, SansGov (Sanseman Government); PO BOX 3295 Redfern Sydney NSW 2016; mobile +61 (0) 449 703 118 matthew.tukaki@sansgov.com; www.sansgov.com

Lindsay Tanner's picture

Creating a culture of continuous improvement

Thanks again for all your comments.

A number of posts over the last day have commented on the need for cultural change in regulators and governments for the continuous improvement philosophy of regulatory improvement to work. I agree. The current culture is strongly related to our tolerance to risk. The pressure on politicians that "someone should do something" after a negative event occurs is immense. Similarly, there are incentives for regulators to be risk adverse and attach a much higher weighting to preventing already unlikely occurrences than the associated compliance costs for business and consumers.

Strong regulatory gatekeeping requirements are essential to prevent knee-jerk regulatory responses. At the Commonwealth level we have the independent Office of Best Practice Regulation (OBPR) which judges whether regulatory best practice principles have been followed. Except in exceptional circumstances, regulatory proposals cannot proceed to the decision-maker unless the OBPR agrees adequate regulatory impact analysis has taken place.

I think this regulatory gatekeeping process generally works well for new regulatory proposals. However, as it occurs ex-ante, it does not pick up the ideas for incremental improvement thought up as Victor says "on-the-road" by people who ultimately interact with the regulations once in place.

One attraction of second-track consultation processes, as Peter describes, is that it brings together a range of interested parties who may be able to foresee some of this practical issues while the regulation is still in the design phase.

However, I still think we need to do more to build continuous feedback loops into regulatory systems. I have been working with Nicholas Gruen on his idea to move to a more continuous regulatory improvement model, building on the continuous quality improvements built into modern-day manufacturing. These theories stress the importance of small changes suggested by those on production lines in improving overall quality.

One option I have considered is whether all on-line government forms (and we increasingly have more and more) should have a feedback box at the end where people can immediately give feedback? This could range from simple comments such as where a question was unclear or more detailed comments about overlap with other processes or querying whether the right information was being sought.

It doesn't sound earth-shattering, but until you ask people you'll never know all the possibilities for regulatory improvements that are out there.

I was told the other day that the recent Productivity Commission benchmarking business regulation exercise found that in one jurisdiction some online forms did not allow you to save a half‑completed entry. If you did not complete the entire form in one sitting you had to start all over again! If you were interrupted for some reason this would make the online form more time-consuming than the old fashioned pen and paper version.

Stan, I am interested in hearing more from you or others with experience on the use of wikis to aid the policy/regulation development process. Your point about the need for the person listening and engaging with the public to have sufficient knowledge of the subject matter to filter through comments is relevant to our blogging trials. We are looking at having either external experts already involved in regulation design through membership of advisory panels or relevant public servants participate in the blogs. This raises issues about how much leeway we should give these correspondents to speak on behalf of the government, or indeed to speak critically of government policy. Do people have any views on this?

A large number of interesting ideas have been raised today, so apologies if I did not cover them all. I shall be logging back in tomorrow to continue our discussion.

Regards

Lindsay Tanner

National Electronic Conveyancing System

One policy area crying out for regulatory reform is conveyancing.

The current paper based process seems remarkably inefficient in this technological age.

The four major banks made it quite clear back in 2004 that they would only participate in a national system. In response to this the states and territories embarked on the National Electronic Conveyancing System (NECS) initiative.

The National Electronic Conveyancing Office was established in 2005 and has been doing some excellent work in determining the requirements for the national system. At the COAG meeting on 3 July 2008 all jurisdictions agreed to develop a national e-conveyancing system. This should have been the circuit breaker necessary for NECS to progress.

However electronic conveyancing was not discussed at the COAG meeting on 2 October.

When can we expect to see the national initiative operating?

continuous feedback loops into regulatory systems

Minister, you are spot on with the idea of "(building) continuous feedback loops into regulatory systems. .... One option I have considered is whether all on-line government forms (and we increasingly have more and more) should have a feedback box at the end where people can immediately give feedback? This could range from simple comments such as where a question was unclear or more detailed comments about overlap with other processes or querying whether the right information was being sought. It doesn't sound earth-shattering, but until you ask people you'll never know all the possibilities for regulatory improvements that are out there."

In my opinion, the best way of implementing this would be to have a single database of this feedback which can be analysed using common and inexpensive data mining tools. I would extend this database to a general pool of input including the spontaneous questions unrelated to a particular form or event. The sort of "under the shower" thought that people have: "Why don't they...?"

Expanding the database to capture sms, emails, web-feedback and maybe even call-centre capture (like the short comments section of the Age) would not be expensive. A small team of policy/solutions orientated people could administer the database and data-mining.

Some ideas/suggestions might be so obvious; they could be transmitted to an admin person to solve the problem.

There could be automated reply for some repetitive suggestions: i.e. "Thanks for your comments on..... This is in progress and..." Or "Thanks for your suggestion. There is a planned review of this regulation in 2010 and we will ensure you are contacted by sms on the number you have used when the review starts"

Cross- departmental patterns could be analysed and solutions found by matching the proponents and inviting them to meet or start a side chat on something like openforum.

I could go on and on but happy to help you and Nicholas on this.

adopting wiki technology

Stan Goldstein is right to advocate this.

Minister, why not experiment with a draft Regulatory Impact Statement as a wiki document? Why not experiment with a draft regulation as a wiki? Perhaps you could start with the new regulations arising from the government response to the global financial crisis?

lets establish a Commission for the eCtizen

I support Matthew. Minister, perhaps you could ring/engage with Steven Clift who is one of the global leaders in this field. A conversation between him, yourself and Nicholas Gruen could lead to some inexpensive but exciting e-democracy iniatives in the regulatory space.

Open Source Governance?

Having recently had some insight into the mechanics of a national review, a couple of things popped into my head that made me uncomfortable (I'm hesitant to call them flaws).

1. Appointment of a limited inner circle of "experts", who determined the questions to be answered and then interpreted the answers.
2. Responses were then made to these questions by a tiny group of Australians, almost all of which are remunerated to provide responses that support the agenda of the group they represent.
3. There was strict information controls in place.
4. We then provided public recognition and reward to the inner circle, for overseeing this process.

Without wishing to be overly cynical ( I'm trying really hard not to become my father :) ) I feel concern that this type of arrangements are unlikely to generate truly innovative and optimal new regulations for Australia.

But as a counterpoint, I'd like to compare those arrangements for creating an outcome with that used to govern Open Source software developments. Open Source software is developed by a community that has a number of interesting structures and principals in place.

1. The project has agreed goals when started by its initial community.
2. There is open access to all information in the community by all members.
3. The community is free for all to join or leave (taking a "fork" of the project with them). Therefore communities dealing with important issues the most professionally tend to flourish (its a market of ideas with winners getting the most energy!)
4. Community members can contribute in a variety of ways; writing core code, writing optional modules, writing manuals, or simply writing feedback on stuff they do or don't like. No one is remunerated to be involved.
5. The community decides the big issues and addresses the big issues.
6. The more a community member contributes to the project, the more say they have in project direction - this rewards those with passion.
7. There is normally a benign dictator role so that any deadlocks can be broken (and surprisingly this works).

Minister I am not a software developer, just someone who has become interested in the area and recognised that its governance structures are producing some fantastic outcomes (eg 50% of all web servers on the Internet run open source software and it has generate household names such as Wikipedia).

I am wondering what would happen if you opened up an area of regulatory development to this alternative type of methodology?

Brendan Lewis

Regulation/Problems/Solutions/Continuous Imp/Feedback

Thank you for this opporunity Minister it has brought a number of ideas together that helps develop a more effective economy.

The Business Enterprise Centres appear to be a good development out of the office small business offerings of the various states. However my understanding is that the online systems and solutions to the small business challenges are now being developed and much is still left to do in this space.

It is often very clear that the regulators have not thought about the tools and processes required to comply.

10 years ago we implemented an induction process for our company and had all through the process points for feedback and improvement. It was an action learning based induction process and the final exercise was to identify what was most in need of improvement (in the induction programme) and the action learning item was "to fix it!" Having that experience I know the technological simplicity in building such loops into any process as we built the step by step guide technology for www.business.vic.gov.au but what is more important here is to use the target audience in the design process to get much more right in any new regulatory process at the start.

At many business functions and other collaboration opportunities with small business I find that most businesses are frustrated because they have to stumble through extensive, time consuming processes to solve the problem (or pay expensive consultants) and it would be good to share the short cuts, document templates and check lists with others facing the same process.

What we need is a small business wikipedia of everyday practical problems created by small business which would be available to answer any question as wikipedia does with knowledge. Those inclined or with an interest may like to codify a possible solution. In this way document templates, spreadsheets and check lists could be shared.

This type of public repository could help regulators connect with tool and advisory services to make sure small business has efficient solutions available as new regulations come into effect.

Russell Yardley

Regulatory options, particularly standards-based; consultation

From David Stephens, Standards Australia:

Great idea. Well done, Open Forum, and Minister. Threads so far raise a couple of issues.

Quality regulation needs to be based on an assessment of risk. Too often we go for detailed, black-letter options when lighter touch options would be sufficient. These options would balance, as Matthew Tutaki says, the interests of business (in free markets) and those of the broader community (in physical and economic security). Aviation safety, as the Minister says, is one area where prescriptive regulation is certainly appropriate. Others could manage with much less black-letter law.

Some of these lighter-touch options involve standards, either as self-regulation or in various forms of co-regulation (eg calling up standards in generalised regulation). Standards Australia produces Australian Standards and is working hard to do so more efficiently.

Going to the Minister's 3rd question, there are many examples on the statute books of where standards are working well in co-regulation. The Building Code of Australia, electrical regulation calling up the Wiring Rules (Australia New Zealand Standard 3000) and occupational health and safety regulation are some examples and there are plenty of others.

The difficulty is that Ministers and public servants are frequently not aware of these examples. We have put these arguments to Minister Tanner, Minister Emerson, their advisers and State and Territory Governments involved in the COAG Business Regulation and Competition Working Group. We will continue to do so.

Which leads to the issue of consultation. While this forum is a great idea there is, as Stan Goldstein says, for wider consultation beyond the usual suspects. I'm afraid public servants do tend to be a little protective and defensive of regulation that they have put their heart and soul into (I was a public servant and I know and have been in the same position). It is important therefore that consultation about alternatives to regulation be opened up beyond the bureaucracies.

Specifically, it would be great if the COAG Working Group could be extended to include non-Government representatives, the actual stakeholders who benefit (or suffer) from over-regulation and who have ideas to contribute about how regulation could be done better.

Standards Australia would be a willing participant in such an exercise and I'm sure others would be as well.

David Stephens

Government and Stakeholder Relations Advisor

Standards Australia

02 6251 5842 0413 867 972 clamshred@ozemail.com.au

Lindsay Tanner's picture

Harnessing technology

I have had a longstanding personal interest in the role collaborative technologies can play in democratic renewal.

Brendan, I think one of the benefits of open source software and Web 2.0 tools is that the government does not need to be the gate-keeper of what can or cannot be discussed. Russell's idea of a small business wiki could be developed just as well, if not better, by a small business group than the government. What I would like to investigate is the terms on which government officials might participate in such forums. For example, if the wiki had incorrect information about eligibility for a government program, government officials could participate in the wiki to provide the correct information.

Matthew, thanks for the link to FERC's website. I would be interested in any feedback you or others may have about how active such interactive discussion forums are in practice. I am aware that some similar feedback or suggestion mechanisms on other overseas regulator's websites are not heavily utilised.

I have mixed views on the Lange Government. Some of their deregulatory initiatives were necessary, but the overall impact was rather brutal. Some argue they were unavoidable, but I'm not knowledgeable enough to understand exactly how dire their economic circumstances were.

There is also a question about where and when interaction between the bureaucracy and external stakeholders will be most productive. While I agree David about the need for stakeholder views to be considered in the COAG regulatory reform process, it could quickly become unwieldy for COAG Working Group meetings to also include a large number of non-government representatives. Use on online consultation tools may be part of the solution here as well as targeted consultation on specific issues.

On e-conveyancing, we formed a sub-group of the BRCWG that, in the course of developing recommendations for COAG, consulted directly with stakeholders. Along with Victor, I am also keen to see a national electronic conveyancing scheme developed. The current paper-based system is inefficient and unnecessarily adds several hundred dollars to the cost of buying a house. COAG agreed in July 2008 to create a new national e-conveyancing entity. Work is now underway with the states to finalise how this new entity will be set up. Once up and running, it's first task will be to investigate whether the existing Victorian software is a suitable basis for a national system. The results of this analysis will dictate how quickly a national system can be rolled out.

Regards

Lindsay Tanner

How about a permanent Better Regulation Electronic Notice Board?

Minister Tanner, I've heard you tell a story about how you were inspired to advocate government consultation with the community using Web 2.0 projects after an experience with the notice board at your local gym. In the instance you described, the humble tools of pen, paper and cork board provided an opportunity for gym members to not only make a comment, complaint or suggestion, but to do so in a public space where other members of the gym could see it. Importantly, gym staff wrote a reply on the cards and posted it back on the public notice board so all members could also see how things had been followed up. For community consultation to be effective people need to take it seriously, to develop such trust it is critical that people can be confident that their issues will seriously looked at by someone in the relevant department and that they will get a genuine response.

The gym notice board scenario definitely represents a good ethos of collaboration and transparency. It is nice to think this could inspire a better model for governmental community consultation using web 2.0 technologies. I am surprised there are not more suggestions being posted on this forum here. I suspect many people don't feel there is much point.

I would suggest that another important aspect that contributed to the success of your gym's notice board system was access and availability.

The comment cards were on display at the front desk where everybody could see them and utilize the notice board service at any time. If the comment cards had only been available for one week of the year, it is unlikely they would have been as useful. It is natural that people only want to talk about the cardio machine when it is broken. Likewise, constituents want to be able to access government as issues arise.

Initiatives such as this discussion forum are a great start, but fall far short of providing a mechanism for the sort of meaningful ongoing dialogue we really need.

Would you consider instituting a permanent Better Regulation Electronic Notice Board?

Consultation

I understand the Minister's comment about unwieldiness but the consultation issue is key still. Would there be scope for a stakeholders' group to hang off the COAG Working Group with direct as well as online access to the working group? Ministerial buy-in and openness to new ideas is great but there is still an issue of opening up the thinking of the respective public services.

Bringing people to government through the web

Minister,

I would be delighted to elaborate on the use of wiki in relation to regulation. I can't take credit for the idea, but have had some input into a process developing around cancer care guidelines. Not quite regulation you may remark, but the way expert clinicians develop these guidelines is so similar to the way regulators consult around regulation that I'm confident the lessons will translate.

The interesting thing about that project compared to the usual wiki environment, is that there are protocols to both protect and collect comments and changes based on the degree of confidence one has in the contributor. Anyone can comment, some people can act on those comments and maintain a commentary, and experts can make changes that would almost reflect a drafting or report level.

The standard approach to wiki allows all manner of people to edit, making the outcome unpredictable and almost unusable as a reference.

Harvard has adopted an approach of having a very large panel of experts as wiki contributors, improving the standard of contribution, but again requiring an expert panel to review, reflect, consult further, and then form an opinion. That would be similar to a call for submissions, but iterative.

The approach we're looking at is to have a call for open comment parallel to the potential for experts to submit, but also to reflect on the open comment, along with a parallel distillation by a panel, whose deliberations would then draw comment from any or all. Sounds complex but isn't really.

I'm not sure a blog is the best place to go into detail, but happy to send something through the Forum.

In any event, the technology required is inexpensive (relatively) and it would be simple enough to establish a trial if you or your Department was sufficiently convinced of the potential. I would be delighted to be able to contribute if that was felt to be of interest.

Good luck. And thank you for taking the time to take part in this conversation.

Stan Goldstein

REGULATION

Over the past 10 years part of my legal practice has included rescuing people from overpriced property deals entered into as a result of the tactics of "property spruikers". Most of these rescues have been successful. They involved getting people of purchase contracts before they had settled and taken out large mortgages. None of the matters I was involved in ever went to Court. All involved Queensland properties sold not only to Queenslanders but also (and more often) to people from interstate and overseas. Over this same time I have played (and continue to play) a prominent media role in warning property buyers and investors about "property spruikers" and their tactics.

It would appear that these tactics have changed little over this period. You can find descriptions of the spruikers' methods of operation in my various articles on the Australian Real Estate Blog (www.australianrealestateblog.com.au) and on Neil Jenman's website (www.jenman.com.au). Enclosed also (in the hard-copy of this email to be posted) for your information are some of my newspaper and magazine articles. Property spruikers invariably work in collaboration with in-the-know real estate agents, finance brokers, financial advisors, lenders, valuers, conveyancers, solicitors and others. While Queensland is one of the few jurisdictions which has tried to legislate against the practices of spruikers, this State's Property Agents and Motor Dealers Act 2000 - despite some 20 amendments over the past 8 years or so - has neither properly protected consumers nor effectively prevented the perpetuation of overpriced property scams. Judicial notice has been taken over the years on how spruikers work.

We refer you to the following cases:

1. ACCC v Oceana Commercial Pty Ltd [2004] FCAFC 174 (5 July 2004)

2. Cross v Qld Newspapers Pty Limited [2006] NSWSC 1340 (6 December 2006)

3. Littler and Anor v Price & Ors [2004} QCA 383 (15 October 2004)

4. Cross v Queensland Newspapers Pty Ltd [2008] NSWCA 80 (7 May 2008)

The first thing that must be done legislatively is to remedy the mischief caused in the first case where the Federal Court ruled that lenders need not disclose valuations to customers. In many instances lenders have been aware from low valuations that properties being purchased were overpriced but, because of high valuations on collateral properties, their lending deals stacked up. Lenders were comfortable with the total equity they had security over . However, few folk would want to proceed with purchases if they knew that their lender's valuation of the investment property was significantly less than the price being paid.

Otherwise my recommendations for legislative action centre around ensuring that borrowers and buyers receive independent advice and representation while ensuring that less-than-independent service-providers are prohibited from providing any assistance whatever from those people.

Accordingly my recommendations are:

  • That property lenders be obliged to provide to customers full details of all valuations obtained on properties where security is being taken, while at the same time lenders must be prohibited from giving notice of finance approval to customers until customers have received those valuations and confirmed they are satisfied with the valuations.

The other prohibitions are :

  • Prohibit estate agents, salespeople and any other non-lawyers from preparing contracts, adding clauses, explaining conditions and/or controlling the signing of contracts.
  • Prohibit agents and others from referring solicitors, conveyancers, finance brokers, financial advisors, and similar service-providers to property buyers and borrowers.
  • Prohibit solicitors, conveyancers, brokers, financial advisors and others from providing services to buyers if they are not independent of the sellers, their agents and any other persons associated with the sellers or the promotion of the property or the provision of other services to the buyers.
  • Prohibit solicitors and conveyancers from representing sellers if not completely independent of sellers' agents and buyers.

Finally:

  • Prescribe stiff penalties for agents, solicitors, conveyancers, brokers, spruikers, valuers, financial advisors and others who breach or try to circumvent these prohibitions.

Yours faithfully, Tim O'Dwyer

PROTECTING CONSUMERS FROM THEIR OWN TRUSTING NATURES

A couple of years back the Australian Securities and Investments Commission released a disturbing report on an investigation into the nation's $560 billion financial advice industry. No-one was surprised when ASIC found that, despite the introduction of the Financial Services Reform Act earlier this year, some financial advisers were failing to disclose "soft dollar commissions" or their disclosure of kickbacks, bonuses and rebates from financial bodies was vague or confusing.

ASICs executive director of Consumer Protection, Greg Tanzer, explained that the Act's disclosure-based approach came from the view that an informed investor could make the best decision. Consumers are apparently adequately protected "once things are appropriately disclosed".

ABC Radio National's Background Briefing program demonstrated this was a flawed approach to the protection of consumers, whether they be financial or property investors, home buyers or mums, dads and their kids in the market for mobile phones.

Associate Professor of Economics at Sydney University Dick Bryan told the ABC that "ordinary old punters" found "extensive amounts of [disclosure] documentation more likely to be confounding than clarifying."

Principal policy officer at the Association of Super Funds, Brad Pragnell, believed that in the case of financial planning advice, ASIC was sometimes unwittingly doing the opposite of what was intended - pushing for so much information to be disclosed and "just baffling consumers".

So what motivates those legally obliged to disclose?

Pragnall said, "Disclosure is being driven more by service providers and product issuers to protect themselves in terms of their liability as opposed to providing information which is clear, concise and effective and going to aid consumers make decisions."

"Companies are using disclosure to protect their backs rather than protect consumers," concluded Background Briefing.

Chief executive of the Australian Consumers Association, Peter Kell, was concerned about "too much emphasis on disclosure as the only tool in the regulatory tool kit.

"There seems to have been an approach in some areas of anything goes as long as you disclose," he said, suggesting that other solutions were needed, including the introduction of "laws that prohibit unfair contract terms in our national regulatory regime as soon as possible."

When the chairman of the Australian Competition and Consumer Commission, Graeme Samuel, was asked if, after kickbacks and commissions were declared, consumers had to embrace the principle of caveat emptor (buyer beware) and make informed choices, he asked in reply, "Do we try and educate consumers to be careful and to look after their own interest, or do we take away the choice?"

Samuel had two words for consumers: "Be careful."

Professor Bryan's similar conclusion was that it was up to consumers who saw a financial planner, or any other seller of goods or services, to know their legal rights and responsibilities. "The buck stops with the consumer," he said.

I disagree. The "buck", in fact, must start with governments which have to work out how to protect consumers from our own trusting natures.

Even the best and toughest consumer protection laws are worthless unless they are adequately enforced.

While the 19th century English philosopher, Herbert Spencer, suggested that shielding folk from the effects of their folly would fill the world with fools, times have changed, our society is less laissez faire and more caring. So people must be protected from the predatory deceit of others.

Governments have to ensure their regulators have not only the wit and will to do their jobs, but also adequate funding. Whether it is financial advisers, mortgage brokers, real estate agents or legal practitioners, the basic principal of consumer protection funding should be "causer pays". Let those whose conduct needs to be regulated by government pay more for their licences to operate. That way industries and professions themselves will indirectly fund consumer protection and regulation.

Also needed is some really creative consumer eduction. Ship out the public servants and government lawyers who seem to think only in terms of sentences on A4 pages. Consumer protection agencies must begin to consult with and listen carefully to selling and marketing experts, behavioural scientists and advertising gurus. Consumers may need to be educated (and warned) in the same way they are entertained colourfully and cleverly through radio, TV, movies, the internet and magazines. The backs of buses, billboards and even flashing neon signs may be some of the media to be considered to get this message across loudly and clearly: Don't trust anyone, and if you do, assume they will let you down.

First Principles - Steve Blume

The discussion so far has tended towards a focus on process and also on ‘community' involvement - I think there needs to be a reversion to the sort of first principles that drove the changes in British Columbia that were outlined recently by Gail Greenwood in her address to the GAP Congress and mentioned already by Matthew Tukaki & others.

Current technological capacity certainly allows us to consider greater community involvement in discussions of issues such as regulatory reform, but, and it is a big but, we run the risk of losing sight of the fact that the major savings to the community and the primary drivers for better regulatory regimes, reduction of existing regulation and a culture of non-regulatory means to get the outcomes we seek, are to be found in the directly economic and commercial areas of our society - ie: business.

That is not to diminish the need to facilitate consultation with the broader community, especially where there are direct impacts from regulation (or de-regulation) on particular sectors, but means that the emphasis on access to regulators and regulatory processes needs to be more narrowly focussed onto the commercial world and even tighter onto the specific sectors that are the target of the public policy controls at which any regulatory regime is aimed. Most areas where quantifiable benefits can be found are relatively discrete, are often confined to defined industries and in many case would appear arcane and specialised to the vast majority of the public outside those directly associated with the area being regulated.

So the flavour of participatory democracy and consultation I see in this discussion seems a little removed from the reality: the drivers are from business and the benefits are overwhelmingly economic. Social improvements can certainly be party of the outcome, but aside from the increased capacity of governments and others to re-allocate savings to more socially beneficial areas (and that's a value judgement) the principal benefit is a smoother and more efficient economy.

I do see the strong argument for the use of Web 2.0 by those sub-sets of stakeholders and by regulatory change-makers to improve access and communication, but the notion of a MySpace or Twitter approach (I know that's an exaggeration) at a wider level is a recipe for perpetual consultation, a surfeit of information and paralysis of change processes - as Minister Tanner hinted most diplomatically in his comments on the COAG process. We already have representative democracy and open access by all citizens to their elected representatives (the argument about how democratic, one-vote-one-value etc, is for another blog or three). As any MP or local councillor will tell you there is little hesitation in using our freedoms to push a view. The cry of ‘you have not consulted' or ‘you have not consulted enough' is so often code for ‘you didn't accept or agree with my views' - when all that has happened is that alternative views have prevailed.So after all that, back to those first principles:

  • regulatory reform is not a call to action from the community broadly, but from the business and private sector (and they must be involved in first and second track processes)
  • the benefits are predominantly financial and economic, so accrue to business (and eventually to government and taxpayers through improve process and reduced administration costs)
  • any proposal to regulate should operate on the reverse onus of proof (ie: this fits in with evidence-based policy and also dictates rigor such that an announced ‘good idea' should not be proceeded with if the evidence does not stack up - a major failure of how we do things in Australia now where the old Yes Minister dictum applies: once it's announced it is policy! There are already examples of this problem under the COAG reform process and a tendency of the Commonwealth to plough on ahead even as the evidence looms large that benefits are tiny or non-existent - as it has before in IT outsourcing and other areas)
  • all regulatory regimes must be subject to sunset provisions I (variable periods as needed)
There will be those who think I am being a bit harsh and elitist about the widening of access to deliberative processes so I recommend they seek out and watch a classic movie that I think has yet to be released on DVD - The Rise and Rise of Michael Rimmer http://www.imdb.com/title/tt0066302/ , perhaps the best ad yet for participatory democracy (or not).

I join with others in thanking Lindsay Tanner for his contribution - we can all hope that such direct access becomes a normal part of our policy development across all portfolios.

Case study: Regulating to distroy innovation and add cost.

Hi Lindsay,

1. I work in the so called ‘deregulated ‘electricity industry; unfortunately for consumers it is anything but that. What I presume is meant as well intended regulation to protect consumers (typically lower socio-economic tiers) ends up adding large costs that flow through to all. All business's are part of , and have obligations to, the wider community , however I can't see the logic in burdening some business's with significant welfare responsibilities , when the proper place for these responsibilities rests with government and the wider pool of taxpayers. The problem here is it doesn't seem to be getting any better with time, just the opposite with increased regulations and obligations being added piece by piece over time, and in different measure in different states. Each piece of regulation may seem OK in isolation, but they all add up to significant costs for business, (and consumers of course) and absorb the energy that a business should be applying to other areas. Short term political gain = long term regulatory pain. Thoughts to fix this?

2. Probably the most insane example of warped regulation I have witnessed recently is in Victoria, whereby the state government has recently gained a draft OK from the Aus Energy Market Commission to regulate and monopolise contestable metering and data services. The irony here is one area of Gov. (Federal - ACCC) works to prevent monopolies, another area of gov. (Vic. state) works to set up monopolies! Electricity Network companies requested the state government set up legislation to grant them a monopoly, so they didn't have to compete in the roll out of smart meters. Energy retailers and innovative Aus. suppliers have developed over the last few years extremely innovative and cost effective smart metering technologies that include the daily remote reading of electricity, gas and water using the mobile phone (data) system and internet. In addition this supports real time remote on /off for electricity (huge cost saving) the add on of wireless colour touch screen in home displays that allow customers to see their real time electricity, gas and water consumption, and receive information services such as weather etc in near real time. These technologies are being rolled out in NZ on behalf of energy retailers, and were starting to be rolled out in Aus. as well; however the Vic government and the AEMC see fit to regulate to block the supply of these to Victorian consumers. These technology solutions enable customers to have visibility of their use of energy/water resources and assist with the management of these in a resource constrained world. To summarise, we have a regulatory process set up to kill competitive supply , destroying Aussie innovation (and some small business' as well) and cost saving the industry, (and their customers) while crippling the industry's ability to enable consumers to meet our countries environmental challenges. Madness.

Regards

Better Regulation Electronic Notice Board

I want to second Tamara's suggestion. I work in childcare and my workmates and I have lots of ideas about how industry standards and conditions could be improved, but none of us have the time today to put together a serious suggestion (we are at work !). We've talked about it and we're reluctant to put something slapdash up today just to make the cut-off time. So we miss out. It would be good to know there was always a place to go where the government would actually listen to us. I think anybody who's read a newspaper lately or is a parent will know that our industry needs support to keep looking after kids

continuing the dialogue...

To the Minister. Well done in making yourself available in this way. I am just regretting I did not login earlier in the week. I have now spread the word to some of my colleagues from the healthcare industry as I am sure that once they know about this opportunity they will want to make the most of a dialogue with you. I was distracted and left it a little late to inform them of this opportunity. Will this forum be completely closed down tonight, or can we keep talking amongst ourselves? I understand that due to time constraints you've had to limit your official commitment to this week but perhaps it would it be possible for you to pop your head in so to speak once or twice over the coming weeks and respond again as the discussion develops?

In response to Neil's question

In response to Neil's question: yes, this discussion board will stay active for Open Forum members' use indefinitely.

On behalf of all the team

On behalf of all the team at Open Forum, I'd like to extend our sincere thanks to Minister Tanner for participating in our e-Democracy challenge. Thank you also, with equal measure, to everybody who has logged in and shared their ideas. I hope you'll all agree it's been an informative collaboration.

Open Forum will be sending a summary of your suggestions to the Ministry of Deregulation for their consideration, and we'll keep you posted on any relevant developments that might occur over the coming months.

Following the success of this week's experiment, I'd also like to extend an invitation to all other members of the cabinet and shadow cabinet to participate in online conversations with their constituents at Open Forum in the future.

By simply talking and listening to each other, exciting things can start to happen.

Thanks again, and all the best.

Sally Rose

Blogger-in-Chief

srose@openforum.com.au

(To keep in touch with our coverage just watch our front page at www.openforum.com.au, or subscribe to our monthly News Wrap - link provided on registration).

Lindsay Tanner's picture

Wrap up and thanks

Tim, COAG decided earlier this month to transfer responsibility for consumer credit from the States to the Commonwealth. As part of this transfer the Uniform Consumer Credit Code will be expanded to cover mortgages for investment properties. This should address, at least in part, the concern about people taking on high levels of mortgage debt to finance investment properties. I'd encourage you to provide further details of your concerns to Nick Sherry, the Minister for Superannuation and Corporate Law, who has direct policy responsibility for this area.

I've also been working with Senator Sherry on reforming product disclosure statements. Tim, you may be interested to know that as part of developing a 4 page prototype PDS for the new First Home Saver Account, we road-tested draft versions with real consumers to better understand what format is most easily understood.

Tamara, I have been considering what an electronic version of my gym's notice board could look like. The UK has something similar on their better regulation website www.betterregulation.gov.uk. We need to consider what the government would do with suggestions posted on the noticeboard, including what the resource implications would be and how we would get back to people. Victor has previously suggested collating the suggestions in a database for governments to follow up. I understand OpenForum has also offered to collate the discussion we have had this week and pass it to my department so we have a record of all your ideas.

On that note I would like to again thank everyone who has participated in the discussion this week. Apologies to those whose ideas and comments I did not have a chance to directly address. A number of interesting ideas have been raised which I'll consider as we progress further with our deregulation agenda. I hope to publicise our progress through my website www.financeminister.gov.au as well as other fora as appropriate.

Regards

Lindsay Tanner

Stop Vested interest pulling the regulatory strings

Having been a community activist over the last few years in the National fight to reform Builders Warranty Insurance, one of the most stupid and harmful 'regulations' that has ever been introduced, it is has become abundtantly clear that the regulators are too often duped by armies of corporate experts when it comes to managing every aspect of the economy and Government.

To me, the key for Government is to re-write the rule book on how public policy is conceived, written, implemented and managed. I have seen the same results in every sector of every industry whereby the very people 'consulted' on what to do, are the very ones who make extraordinary profits as a result, while the community suffers.

Builders Warranty is but one classic example of how unsuspecting regulators have been completely snowed by vested interest - and once the law is passed or the Ministerial Order gazetted then the fight to reform is damn near impossible because the regulators (bureaucrats) themselves start to close shop because when it is evident that they cocked up, then they metamorpisize into gatekeepers of the status quo.

Anyway, the bottom line is that policy is not for sale and the sooner we change the current regulatory philosophy the better because too many people are hurting over inept, biased, stupid and harmful regulations - the whole picture being anathema to true democracy

The road ahead

Dear Minister, Open Forum, Contributors, poets and thinkers, conservative and otherwise,

It is more than somewhat of a pity that such an interesting and optimistic discussion has come to a seeming conclusion, even recognising Sally Rose' assurances that the lines are still open.

There seem to be far too few opportunities of this nature and I can't speak highly enough in appreciation of the Minister's willingness to take time, but even more so, to listen.

Minister Tanner mentioned that his department would look at the summary of the discussions, but perhaps we might be more proactive and ask them to suggest, say, three ideas in which they had more than a passing interest that could form the buds for new branches of discussion, this time with the aim of addressing rather than posing questions.

There are clear opportunities here for participative thinking, perhaps even participative democratic process, so let us not allow this conversation to be placed on the shelf with a promise of future action. By all means prune the conversation to meet the desired needs and shape, but can't we keep this going and encourage growth instead of having to start it up again at some indeterminate time in the future?

All the best,

Stan