Regulation at all levels impacts significantly on the ability of business to do business. This is the case, not only with Commonwealth and State Governments, but also Local Government regulation.
It has been estimated reforming Local Government regulations could save in excess of $400 million. The 1993 report, ‘Local Government Regulatory Processes and Business Development’ identified that, through their administration of business regulations Councils can have the following impact.
- Prohibit or deter the establishment of new business activities or the growth of existing businesses, estimated at $70 million in investment and 4,240 jobs over two years.
- Delay the development of new business activities which add an estimated 4.5% to the cost of major developments.
- Add an additional two percent to project costs through information required for proposed business developments.
Regulations also impose considerable costs on Councils. This in turn is either passed onto ratepayers or incorporated into the fees for application. It has been estimated that Councils spend approximately $122 million on the regulation of business.
Just over 55% of this expenditure is in the area of building control and town planning. The National Office of Local Government has been closely involved in assisting Local Government improve their approvals practices.
For most of the 1990s the Commonwealth has funded the Local Approvals Review Program (LARP) to assist Councils in streamlining building and development approvals practices. Some 182 Councils have received funding to work towards improving their approvals processes.
Additionally, a number of publications have been produced to encourage Councils to undertake their own ‘LARP-type’ reviews. The latest, the ‘Solutions Toolkit’ is described by one facilitator as ‘full of hidden gems’. In the past few years, other reform agendas such as competitive tendering and private certification have assisted in decreasing approvals times.
NOLG has also funded the development of an extension of the Business License Information System in Tasmania and Western Australia. This computerised system will be linked to all Local Governments in each of the States.
The system will not only provide information on State and Commonwealth licences required for any identified business activity but will include all Local Government regulatory requirements. It will allow a prospective business person to obtain all of the licence information they require from one visit to Council, effectively eliminating the need to visit a variety of State and Commonwealth agencies.
For any future information please contact Geoff Allan, on (06) 289 2068.
