Compliance burden, regulatory quality and incentives, a survey of post-farm agribusinesses
Operational research project code: GIN 724
Compliance costs are an ongoing concern to agricultural, horticultural and forestry sector businesses. The Government has taken a number of initiatives to identify and reduce compliance costs. The term “compliance cost” can include compliance costs imposed by the market, by industry organisations, by foreign governments or by central and local government in New Zealand. It may include visible or hidden, direct or indirect costs of complying. The 1998 report on compliance costs by the Parliamentary Commerce Committee gave the following definition of compliance costs :
Compliance costs are the costs to affected parties of interacting with government in meeting an obligation or obtaining a service. Compliance costs are incidental to the obligation itself and are often related to the processing and providing of information.
In 2005 MAF Policy commissioned research to look at and understand the nature of compliance costs for on-farm businesses. MAF Policy is now looking to extend this research, focusing on businesses beyond the farm gate. This particular research should seek to understand the compliance burden imposed on businesses, their origin and their perceived benefit. MAF Policy is looking to understand the regulatory quality of compliance regimes that impact on agricultural, horticultural and forestry businesses, the incentives they create and the potential opportunities to leverage competitive advantage for New Zealand businesses.
This research should include the following parts:
- Part 1 – Scoping Compliance Costs: identify sources of compliance costs which may be characterised by the practicality of MAF being able to influence the imposition of the compliance costs and the origin of compliance: by the market, by industry organisations, by foreign governments or by central and local government in New Zealand. It may include visible or hidden, direct or indirect costs of complying.
- Part 2 – Survey Design and Testing and Sample identification: development of the sample should be completed with input from MAF Policy and the survey designed to elicit answers to the issues posed above.
- Part 3 – Analysis of Test Survey Results: specific attention should be given to addressing a deeper understanding of compliance, regulatory quality and incentives and the potential to leverage competitive advantages businesses.
Contact:
Amanda Tullett
Tel: 03 358 1860
Email: amanda.tullett@maf.govt.nz
Contact for Enquiries
Manager, Innovation Policy
Ministry of Agriculture and Forestry
MAF Policy
PO Box 2526
Wellington
New Zealand
Tel:+64 4 894 0618
Fax:+64 4 894 0741
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