Program Overview

South Australia's mission to cut red tape is achieving dramatic results.

The first two-year phase finished $18 million ahead of target with net annual savings to business of $168 million.

A report Reducing Red Tape for Business in South Australia 2010/11 has been released by the Minister for Manufacturing, Innovation, Trade, Resources and Energy, as chair of the Competitiveness Council.  The report provides an insight into the South Australian Government's approach to reducing regulatory burden on business and the not for profit sector. Copies of the report can be requested through DPCRedTapeTeam@dpc.sa.gov.au

South Australia is now well on the way to completing the second phase - an additional $150 million a year in net cost reductions by 2012.

All 13 State Government departments plus 3 key statutory authorities have been allocated a target with Chief Executives accountable to the Premier for achieving the goals.

 

Red Tape Champions

The Competitiveness Council is directing the program supported by Red Tape Champions - senior officers within government agencies. They are responsible for:   

• taking a hard look at legislation, regulation and business processes and the impact they have on business
• providing regular reports on their department’s progress towards achieving their target
• providing guidance in this process for their department and acting as a ‘reality check’ for suggested solutions

A key part of their brief is to foster cooperation between departments and share ideas to ensure doing business with government is straightforward

DEFINING RED TAPE

South Australia has thrown the net wide in its bid to eliminate red tape and make doing business with government more streamlined.

The broad interpretation covers both administrative and compliance costs and any regulation that is redundant, cumbersome or confusing.

Three major categories are being targeted to reduce their impact on the State's competitiveness:

• Paperwork compliance, which includes form-filling and providing information
• Non-paperwork compliance, such as staff training, changing production processes or costs associated with regulation-induced delays in business projects
• Financial costs, including government fees, permits and licences

AGENCY GUIDELINES

A set of guidelines has been prepared to assist agencies with identifying and calculating their red tape savings. The guidelines provide methodologies to accurately estimate and measure:

• Administrative compliance costs
• Non-administrative compliance costs
• Financial costs
• Costs associated with other government processes

VERifying the results

All cost savings from red tape initiatives are verified by independent auditors (Ernst & Young) twice a year.

This ensures transparency and that the methodologies and assumptions made by each agency are accurate and consistent across government.

Agencies are responsible for achieving individual targets and must deliver six-monthly reports on their progress for Ernst & Young to audit.

A recent report by the Organisation for Economic Co-operation and Development recognised South Australia as a national leader in reducing red tape. The report, OECD Reviews of Regulatory Reform Australia 2010 - Towards a seamless national economy, found that other states are adopting similar approaches.