Regulatory Standards Bill Gains Momentum as Minister and BusinessNZ Target Red Tape

Regulation Minister David Seymour is championing the Regulatory Standards Bill as a long-overdue solution to New Zealand’s growing regulatory burden, following strong support from BusinessNZ during select committee submissions this week. The Minister has positioned the bill as a key tool in the Government’s broader agenda to reduce red tape, improve legislative transparency, and foster economic growth.

The bill, which has faced vocal opposition from some academics and legal scholars, aims to hold politicians more accountable for the laws they enact by subjecting regulatory proposals to higher standards of scrutiny and exposing poor lawmaking to public view.

“After all the misinformed opposition we’ve heard, the people who get up in the morning to make an honest buck and deliver goods and services to New Zealanders want red tape and regulation dealt to, and believe this Bill will help them do that,” Seymour said.

BusinessNZ Voices Strong Support

In its submission, BusinessNZ, the country’s largest business advocacy group, described the bill as an important step toward improving the quality of regulation and easing compliance pressures on businesses, particularly small and medium-sized enterprises (SMEs).

The organization highlighted that New Zealand’s regulatory framework often imposes significant costs on businesses—not only in terms of financial outlays but also lost time, resources, and opportunities. BusinessNZ emphasized the bill’s potential to introduce more rigorous assessment of new regulations, deterring politically expedient but economically damaging rules.

“This Bill ensures that lawmaking is more transparent and rational. It’s a crucial step toward lifting New Zealand’s productivity by focusing political minds on the cost of regulation,” said a BusinessNZ spokesperson during the hearing.

Addressing Academic Opposition

Minister Seymour also responded to criticism from academic circles, who argue that the bill may create legal uncertainty or procedural complications. He defended the bill as a real-world solution to real-world problems that many in academia are disconnected from.

“The academics who have been so loud about this Bill are so far removed from reality—partly because many of Parliament’s damaging laws don’t frustrate their ability to make a living,” Seymour said. “If they were held back by red tape and regulation on a daily basis, like many businesses are, they would support this Bill.”

He stressed that while the bill does not prevent poor regulation, it exposes it to public and parliamentary scrutiny, making it easier for voters to hold policymakers accountable.

A Culture Shift in Lawmaking

The bill introduces principles of good regulation into the lawmaking process. These include:

• Proportionality – regulations should be no more burdensome than necessary.

• Transparency – the reasoning behind regulatory decisions must be clear.

• Accountability – those responsible for laws must be identifiable.

• Reviewability – there should be mechanisms to challenge or review bad rules.

Seymour argues that by incorporating these principles into the legislative process, the bill will discourage regulation for political gain, and ultimately foster a more evidence-based, cost-conscious approach to governance.

“Too often, politicians find regulating politically rewarding. We need to make it less rewarding by putting more sunlight on their activities,” Seymour added.

A Broader Economic Agenda

The Regulatory Standards Bill is a part of the Government’s wider push to address New Zealand’s high-cost economy, where burdensome regulation acts as a hidden tax on growth. The Government aims to cut down on unnecessary compliance obligations, streamline business processes, and lift national productivity.

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

If passed, the bill could reshape how Parliament evaluates legislation, making it easier for businesses and citizens to understand, challenge, and improve the rules that govern them.