David Seymour Hails Regulatory Standards Bill as Key to Boosting Productivity

New Zealand’s regulatory landscape is poised for a major transformation as the Regulatory Standards Bill, a cornerstone policy of the Ministry for Regulation, passed its first reading in Parliament. Regulation Minister David Seymour, a vocal advocate for principled governance and economic efficiency, welcomed the move, heralding it as a pivotal step in reducing bureaucratic drag and enhancing productivity across the nation.

In his remarks to Parliament, Seymour emphasized the detrimental impact of poorly designed regulation on the country's productivity and wage growth. “New Zealand's low wages can be blamed on low productivity, and low productivity can be blamed on poor regulation,” Seymour stated. “To raise productivity, we must allow people to spend more time on productive activities and less time on compliance.”

Key Provisions of the Regulatory Standards Bill

The Regulatory Standards Bill introduces a robust framework for improving the quality and accountability of legislative and regulatory processes in New Zealand. Its core features include:

• Principles of Responsible Regulation: The Bill sets out clear benchmarks for good lawmaking practices. These principles aim to ensure that all regulations are necessary, efficient, and fair.

• Transparent Legislative Assessment: New measures will enable both the public and policymakers to evaluate whether new and existing legislation aligns with these principles, fostering greater transparency in the lawmaking process.

• Regulatory Standards Board: An independent oversight body will be established to assess regulatory compliance and consistency. This board will play a watchdog role, reviewing the rationale and expected outcomes of proposed laws.

• Support for the Ministry for Regulation: The Bill strengthens the Ministry’s oversight role, equipping it with additional tools and authority to enforce regulatory standards across government departments.

Changing the Culture of Regulation

Seymour explained the deeper intent of the Bill: to shift the incentives around regulatory behavior. “If red tape is holding us back because politicians find regulating politically rewarding, then we need to make regulating less rewarding for politicians with more sunlight on their activities,” he said. “That is how the Regulatory Standards Bill will help New Zealand get its mojo back.”

This approach, he continued, doesn't outright ban poor regulations but makes them transparent and attributable. “The law doesn’t stop politicians or their officials making bad laws, but it makes it transparent that they’re doing it. It makes it easier for voters to identify those responsible for making bad rules,” Seymour noted.

Over time, he believes this transparency will drive cultural change in Wellington, incentivizing better lawmaking. The long-term goal is not merely to trim regulations but to reshape the standards by which they are created.

A Boost for Productivity and Accountability

In a broader context, the Bill is part of the Government's economic strategy to lift New Zealand out of its low-growth, high-compliance trap. By streamlining regulatory processes and holding lawmakers to higher standards, Seymour argues the country can unlock significant economic potential.

“In a high-cost economy, regulation isn’t neutral – it’s a tax on growth,” Seymour warned. “This Government is committed to clearing the path of needless regulations by improving how laws are made.”

Public and Political Reaction

The Bill’s introduction has sparked conversation across political and civil society spheres. Supporters argue that it represents a long-overdue reform to reduce the burden of compliance on businesses and citizens alike. Critics, however, caution that the Bill’s effectiveness will depend heavily on the independence and capability of the Regulatory Standards Board.

As the Bill moves to its next stages in Parliament, it is expected to be scrutinized closely in select committees, where lawmakers, stakeholders, and the public will have opportunities to shape its final form.

If enacted, the Regulatory Standards Bill could become a landmark piece of legislation that redefines how regulations are crafted, assessed, and implemented in New Zealand, offering a model for evidence-based and transparent governance.