CoOperativeNZ expresses its strong opposition to the Regulatory Standards Bill (the “Bill”), which
is currently under review by the New Zealand Parliament. While the intentions behind the Bill may be to streamline regulatory processes and enhance clarity, it raises significant concerns that could have negative consequences for the regulatory framework and the broader society. CoOperativeNZ is concerned with the long-term impact of regulation on the public interest. We believe that the Bill, as it stands, could undermine regulatory oversight and hinder effective governance.
- Limiting Regulatory Discretion and Flexibility
The Bill proposes to establish a set of rigid standards that regulatory agencies must adhere to when creating and enforcing regulations. While clarity and transparency are essential, imposing overly prescriptive requirements risks constraining the ability of agencies to respond effectively to evolving circumstances. Regulatory bodies must have the flexibility to make decisions that reflect the nuances of specific industries, sectors, and contexts. This rigidity risks creating a “one-size-fits-all” approach that does not account for the unique challenges and risks associated with each regulatory area.
- Potential for Reduced Public Health and Safety Protections
One of the most alarming aspects of the Bill is the potential for reducing protections for public health, safety, and the environment. The introduction of regulatory standards that are overly focused on cost-efficiency and bureaucratic simplicity could lead to weakened enforcement of essential safety measures. For instance, if regulatory agencies are forced to adhere strictly to the procedural standards set out in the Bill, they may be unable to take timely action in response to emerging risks—whether in relation to food safety, environmental degradation, or workplace hazards. The proposed framework may inadvertently prioritise administrative efficiency over the well-being of New Zealanders.
- Undermining Regulatory Agencies’ Independence
The Bill could also undermine the independence of key regulatory agencies. The Bill’s mechanisms for overseeing and potentially restricting the actions of regulatory bodies can create a chilling effect, where agencies are more concerned with meeting procedural requirements than fulfilling their statutory objectives. Regulatory agencies should operate with autonomy to ensure that they act in the public’s best interest, without undue influence from political or bureaucratic constraints. The Bill appears to erode this independence, thus weakening the overall effectiveness of these agencies.
- Inadequate Stakeholder Consultation
Another critical flaw in the Bill is the inadequate emphasis placed on public consultation and stakeholder engagement. Regulatory agencies and government bodies must maintain a transparent, inclusive process for decision-making that involves all relevant stakeholders—especially those directly impacted by the regulations. A robust, participatory process ensures that regulations are practical, well-informed, and responsive to the needs of the people. The Bill, however, does not place sufficient emphasis on stakeholder engagement, which could result in the implementation of regulations that are disconnected from the realities of affected communities and industries.
- Impact on Innovation and Economic Growth
The regulatory framework outlined in the Bill has the potential to stifle innovation and economic growth, particularly in emerging industries like technology and renewable energy. Overly rigid standards and regulatory requirements could create unnecessary barriers to market entry or hinder the ability of businesses to adapt to new challenges. The Bill could, therefore, discourage entrepreneurship, technological development, and the adoption of sustainable practices—all of which are vital to New Zealand’s economic prosperity and environmental goals.
- Lack of Provisions for Regulatory Review and Accountability
The Bill lacks sufficient provisions for regular review of existing regulations and mechanisms to ensure that they remain fit for purpose. The regulatory landscape must be dynamic, with regulations being regularly assessed for their efficacy, efficiency, and relevance. By limiting opportunities for review and adjustment, the Bill risks locking New Zealand into an outdated regulatory framework that fails to address emerging issues in public policy, technology, and the environment.
Conclusion and Recommendations
While the Regulatory Standards Bill may be well-intentioned, it presents significant risks to the effectiveness, adaptability, and independence of New Zealand’s regulatory framework. CoOperativeNZ strongly urges the Select Committee to reconsider the Bill in its current form and to focus on creating a regulatory environment that balances clarity and flexibility, ensures the protection of public health and safety, and promotes robust stakeholder consultation. Specific recommendations for improvement include:
- Allow greater flexibility for regulatory agencies to respond to emerging risks and industry-specific challenges.
- Strengthen the emphasis on stakeholder consultation and public engagement during the regulatory process.
- Introduce provisions for periodic review of regulations, ensuring they remain relevant and effective.
- Preserve the independence of regulatory agencies to ensure they can act in the public’s best interest without undue political or bureaucratic influence.
Thank you for considering CoOperativeNZ’s submission.
Jane Wilson, CoOperativeNZ
