A similar red tape cutting campaign in Victoria that has been operating since 2007 will save Victorian businesses an estimated $747 million a year by 2016. NSW’s larger economy means the potential for cost savings is even greater.
The NSW Business Chamber’s six-point plan calls for the NSW Government to:
- Commit to pay business suppliers within 30 days.
- Adopt the internationally recognised ‘Standard Cost Model’ to accurately estimate and report the costs incurred by business through compliance.
- Set binding targets to reduce the total amount of business regulation.
- Stop the growth of new regulations by implementing a ‘one in, one out’ approach to regulations, - if a new regulation is introduced, another must be removed.
- Explore opportunities to improve management, simplify budget processes and reduce duplication by agency rationalisation.
- Make ministries and agencies more transparent and accountable, by specifying in the Budget the quantity and cost of delivering major services, as well as their quality and timeliness.
“Red tape stifles competition, innovation and productivity, the very things business should be concentrating on during an economic downturn.”
“The NSW Government in partnership with the business community should be aggressively targeting and eliminating the excessive costs of doing business in NSW.
“The NSW Government currently owes business operators millions of dollars in unpaid accounts that have entered the 60 to 120 day period or beyond. The NSW Government simply paying its bills on time is a simple policy initiative that would reduce a significant amount of pressure on business budgets, especially in regional economies. Victoria has already implemented such a policy.
“Business operators do not want to lose their trained employees if they can avoid it because training new staff is prohibitively expensive.
“Cutting the cost of running a business in NSW will provide business operators with stronger cash flows and give them a stronger financial footing to retain their staff.
“The Premier must use the Jobs Summit to turn NSW’s lagging fortunes around; otherwise the 10,000 people who have joined the unemployment line in the last month won’t be the last.
“Implementing our six-point plan would be a strong step forward towards that goal of reviving the NSW economy.” MacDonald concluded.
NSW Business Chamber’s “Reducing the cost of doing business in NSW” report is available to view at: www.nswbusinesschamber.com.au.
NSW Business Chamber has over 30,000 members and is affiliated with 110 chambers of commerce throughout NSW and the ACT.
