Formats
Key points#
1 This circular sets out the requirements for Ministers and agencies developing government regulatory proposals. Government agencies and Ministers should not see regulation as the first resort for problem solving. Where regulation is proposed, it should address a well-defined problem and should be carefully analysed to ensure the benefits exceed the costs.
2Key points in the circular are:
2.1impact analysis encourages a systematic and evidence-informed approach to policy development;
2.1government agencies are to contact the Ministry for Regulation as soon as possible after policy work commences on an issue that may result in a regulatory proposal being recommended to Cabinet;
2.3all policy papers taken to Cabinet that include a regulatory proposal are to be accompanied by agency impact analysis in the form of a Regulatory Impact Statement, unless an exemption applies;
2.4there are some limited automatic exemptions. The Ministry for Regulation can also grant exemptions in certain circumstances, but this may be subject to conditions;
2.5all Regulatory Impact Statements must be independently quality assured against set criteria, and a quality assurance statement included in the relevant Cabinet paper;
2.6external consultation is a key component of high-quality impact analysis and certain requirements also apply to discussion documents that contain regulatory options; and
2.7government regulatory proposals with missing or inadequate Regulatory Impact Statements are likely to be subject to a Supplementary Analysis or Post Implementation Review requirement.
3The updated Impact Analysis Requirements set out in this circular apply from 1 January 2025.[1] The Regulatory Impact Statement templates, Quality Assurance criteria, guidance notes, and access to the online platform for administering the impact analysis requirements (RIA Online) are all available on the Ministry for Regulation website.
4Ministers and Chief Executives should ensure that:
4.1all staff involved in the development of government regulatory proposals are familiar with the contents of this circular; and
4.2the material in this circular is conveyed to all Crown entities and State sector agencies that may be involved in policy initiatives relating to government regulatory proposals.
Note#
- [1] While the circular comes into force on 1 January 2025, any proposal which has had its arrangements confirmed with the Ministry for Regulation prior to 1 January 2025 can continue under the old requirements and templates if the proposal is submitted to Cabinet by 31 March 2025.