There can be no doubt we're facing turbulent economic times. Our inaugural budget was designed to put downward pressure on inflation as well as delivering on our election commitments and setting the Australian economy up for the longer term. 

We're addressing Australia's future challenges by funding our election commitments to improve productivity through an education revolution and by tackling the infrastructure bottlenecks which are holding our economy back.

As I pointed out last week at the Australian Trucking Convention we're also prepared to tackle the deeper structural issues effecting our capacity to compete on a world stage, and we especially see deregulation as an important a tool for improving Australia's productivity. 

I am writing to you today as Australia's first Federal Minister for Deregulation.  In fact, we have two Ministers - myself and the Minister Assisting the Finance Minister on Deregulation, Dr Craig Emerson and since we took office in November we've been looking for ways to reduce the regulatory burden on business.

With the Minister for Superannuation and Corporate Governance, Senator Nick Sherry, I've set up the Financial Services Reform Working Group which is already working with industry and consumer representatives to cut down the voluminous product disclosure statements to the couple of pages of key information that potential investors really need to know.

Over the coming months we will also honour our election commitment to implement a ‘one-in', ‘one-out' principle to ensure no net increase in regulatory burden associated with new Federal legislation. This principle requires that a Minister seeking to impose new regulation must try and find offsetting reductions in regulatory burden.

The one-in, one-out principle will operate in conjunction with the existing processes of the Office of Best Practice Regulation (OBPR). The OBPR is an office within the Department of Finance and Deregulation that independently monitors compliance with the best practice regulation principles and associated regulatory impact assessment procedures.

In all but exceptional circumstances, a regulatory proposal cannot proceed to Cabinet without the regulatory impact analysis processes being met. 

I am also keen to develop a culture of continuous regulatory improvement. 

I know a lot of frustration from business people comes from the ‘stupid' regulation they encounter just trying to do their jobs and run their businesses. This regulation seems stupid because it is not fit-for-purpose. It may be ineffective, overly burdensome, outdated or duplicate other regulation.

One example raised with me recently was a business who wished to transport an unusually shaped load on a specially designed trailer between Victoria and Queensland.  The trailer meets the Australian Design Rules and the performance based standards developed by the National Transport Commission.  It is widely used overseas to carry similar loads. 

However, the company still had to obtain over eight separate approvals from state-based transport departments, road authorities and local councils to travel the route.  This process took over two years to complete.

This example also illustrates another key focus for the government's deregulation agenda - ending the blame game between the Federal and State Governments and working together to remove regulatory impediments.

In transport and infrastructure markets, the historical and arbitrary differences in regulation between state borders hinder the industry and the nation's productivity.  While the original rail gauge problem - differing gauges on key lines between major cities - has been solved, there remain others.

The Business Regulation and Competition Working Group of COAG, which I co-chair with Minister Craig Emerson, presented COAG in March 2008 with plans to reform and harmonise 27 ‘rail gauge' problems in areas as diverse as rail safety, electronic conveyancing, margin lending and wine labelling.

Top of this list of regulatory reforms is finally achieving national harmonised occupational health and safety laws. 

In late May, Deputy Prime Minister and her state counterparts agreed in principle to an intergovernmental agreement which will finally sign all jurisdictions up to harmonised OH&S laws, implemented through model legislation, and complete the change over by 2011, 12 months ahead of schedule.

It is my job to ensure this timetable does not slip. I am acutely aware that regulatory reform is littered with good intentions and deregulatory initiatives which have not ultimately delivered for business.  There is a lot to be done - but we have the energy and commitment to ensure we break down the unnecessary legislative barriers to a more progressive and productive economy for all Australians.

Lindsay Tanner is the Minister for Finance and Deregulation and has represented the seat of Melbourne in the House of Representatives since March 1993. Prior to being appointed as a Minister in the Rudd government, Lindsay served as Shadow Minister for Finance and Deregulation and had also held portfolio responsibilities in Consumer Affairs, Transport, Communications and Community Relationships. 

http://www.financeminister.gov.au/