As the government looks to repeal redundant regulation, more than half of businesses indicate red tape has stopped them from expanding.
In a survey conducted by the ACCI 54.3% of businesses indicated that complying with regulatory requirements has prevented them from making necessary changes to grow or expand their business.
ACCI acting chief economist Burchell Wilson says this is all the more reason to support the government’s move to dedicate Parliamentary sitting days to repealing regulation.
Also crucial is the focus on good regulatory process to ensure that new regulations are fit for purpose and achieve their objectives at least cost,” said Burchell.
“The commitment by the government to subject all Cabinet submissions to regulatory impact statements will provide much needed discipline on the genesis of new regulation.”
While praising the government’s improved focus on regulation, Wilson criticised the political process for a tendency to generate “kneejerk regulatory responses, the adverse consequences of which are further compounded when proposed regulatory interventions are poorly designed”.
"In the context of the current budget position, the government's deregulatory agenda takes on heightened significance. There is limited room in the federal budget to 'buy reforms' in the sense of being able to compensate the losers from structural reforms that will lift productivity.
"This will weigh on the prospects for reform until the budget position is improved. However, a well-executed deregulatory agenda can yield cost-savings for business, lower prices for consumers and enhance productivity while having a negligible impact on the budget."