PM commits to red tape crackdown, modelled on Trump administration

In his first speech since winning the election, PM Scott Morrison said that he plans to go a step further in cutting red tape by transforming the regulatory mindset of the bureaucracy.

“While reducing taxes has had a major impact in the United States, it was actually the Trump administration’s commitment to cutting red tape and transforming the regulatory mindset of the bureaucracy that delivered their first wave of improvement in their economy,” the PM said in a speech to the Chamber of Commerce and Industry of Western Australia.

He announced that while the government’s previous red tape cuts had created savings of $5.8 billion, the next wave will see the onus shift to business.

“Rather than setting targets for departments or government agencies, we’ll be asking the wider question from the perspective of a business looking, say, to open a mine, commercialise a new biomedical innovation, or even start a home-based, family business,” said Mr Morrison.

“By focusing on regulation from the viewpoint of business, we will identify the regulations and bureaucratic processes that impose the largest costs on key sectors of the economy and the biggest hurdles to letting those investments flow.”

Step one, he said, is to get a picture of the regulatory anatomies that apply to key sectoral investments. Step two is to identify the blockages.

“Step three is to remove them, like cholesterol in the arteries,” the PM explained.

Speaking about regulators, Mr Morrison judged that while there is a need to improve approvals time frames and reduce regulatory costs, “in many case regulators are making things worse”.

“Look at the WA Environment Protection Authority and the uncertainty it has created over new emissions requirements for the resources sector,” he said.  

In order to tackle this, the PM announced he has asked his ministerial team to look into tackling the full suite of barriers to investment in key industries and activities.