Consultation Opens on Regulatory Standards Bill to Boost Productivity and Wages

Proposed legislation aims to ensure better regulation, improve accountability, and lift New Zealand’s economic performance.

Regulation Minister David Seymour has unveiled the next phase in the Government's regulatory reform efforts by opening public consultation on the proposed Regulatory Standards Bill, a key initiative in the ACT Party’s coalition agreement.

“New Zealand’s low wages are a symptom of low productivity, which in turn stems from burdensome and poorly designed regulations,” Minister Seymour said. “The Regulatory Standards Bill is a critical step in addressing these issues to ensure higher productivity and better wages for all New Zealanders.”

Codifying Good Regulatory Practice

The proposed Bill seeks to introduce a set of principles for high-quality regulation, establishing clear standards for both existing and future laws. Minister Seymour compared its impact to that of the Public Finance Act on government spending, with the Ministry for Regulation playing a similar oversight role to that of the Treasury.

“This Bill is about bringing discipline to lawmaking,” Seymour explained. “It will ensure regulations work in practice, not just in theory, and hold regulators accountable to the New Zealanders they serve.”

Introducing Accountability Through a Regulatory Standards Board

A significant feature of the proposed legislation is the creation of a Regulatory Standards Board, which would offer a mechanism for New Zealanders to challenge and critique regulations. The Board would assess complaints and issue public reports with non-binding recommendations, increasing transparency and raising the political cost of poor regulatory practices.

“This Board is a game-changer,” Seymour said. “It gives Kiwis a way to push back against bad laws, fostering better decision-making and more effective outcomes for the economy.”

The Economic Case for Reform

Poorly crafted regulations have long been identified as a barrier to New Zealand’s economic growth. Compliance burdens cost businesses time and money, reducing innovation and overall efficiency.

“By holding regulators accountable, we’ll see a reduction in unnecessary red tape and an increase in productivity, allowing businesses to thrive and wages to grow,” Seymour said.

Timeline and Public Involvement

The public consultation period for the Bill is open until Monday, 13 January 2025, and the Government is encouraging input from all sectors. Key stakeholders, including industry representatives, legal experts, and community groups, will be invited to participate in workshops and roundtable discussions.

“We want to hear from everyone—from business owners battling red tape to everyday citizens frustrated by inefficient regulation. This is your chance to shape the future of lawmaking in New Zealand,” Seymour urged.

Looking Ahead

The Regulatory Standards Bill represents the culmination of nearly 25 years of advocacy for improved regulation, building on the work of past governments and reformers.

“This legislation is about creating a better future for all New Zealanders,” Seymour concluded. “It’s time to ensure our laws support productivity and prosperity, not hold us back.”