The COAG Reform Council's 2010-11 Seamless National Economy Report on Performance, released today, has reported positively on the progress of COAG's 27 deregulation priorities, with 15 having been completed, including one ahead of schedule.
In 2008, the Commonwealth, States and Territories agreed to implement regulation and competition reforms, including 27 deregulation priorities.
The deregulation priorities that have been completed include reform of consumer law, product safety, the health workforce, rail safety and consumer credit.
The Productivity Commission recently examined 17 of the deregulation priorities and estimated that, with full implementation, they could lower business costs by about $4 billion per year and, through improvements to productivity, increase GDP by over $6 billion in the longer term.
The report did raise concerns about some priority reforms which have been delayed, by the States and the Commonwealth, and where the outcome may be at risk. As a reflection of the economic importance of the regulation and competition agenda, the Commonwealth has set aside over $450 million of reward payments associated with these reforms, tied to the delivery of agreed outcomes.
Of most concern is the overhaul of Occupational Health and Safety regulations which provides Australians with a nationally harmonised workplace safety system based on model legislation. This reform was due to be finalised last December.
The Australian Government is committed to leading on the deregulation and reform agendas, in conjunction with all States and Territories, and will drive accountabilities to ensure they are delivered in a full and timely manner.
The 27 deregulation reform priorities will reduce red-tape for business, increase productivity and enable an efficient economy where resources can move to where they can make the greatest economic contribution.
It is the responsibility of both levels of government to ensure regulations are in place to lift national productivity and facilitate the mobility and efficient allocation of resources.
As we build a new economy in response to the structural changes afoot because of the relatively high dollar, these objectives are more important than ever.
COAG is considering the Council's Report and will release a response in the near future.