CHRONICLE COLUMN – RED TAPE – 13 FEBRUARY 2023
In 2020, the Institute of Public Affairs (IPA), in their report titled, How Red Tape Stops Business and Job Creation is crystal clear in its conclusions that red tape acts as a handbrake on economic activity, costing $176 billion in foregone output each year.
Red tape disproportionately impacts small and new businesses, forcing their owners to divert time and money toward unnecessary compliance. Reducing the red tape burden will allow Australians, Queenslanders, and Toowoombians to start new businesses and expand existing ones.
The IPA argues that one highly successful approach undertaken in the United States is to introduce a one-in-two-out approach where two regulations are removed for every new regulation introduced.
Red Tape Reduction Should this be the goal of our regulators?
We know, as articulated by the Australian Business Council good regulation is essential. When created and applied effectively and purposefully, government oversight protects consumers, the community, and workers. Similarly, good enabling regulation ensures we keep our competitive edge, safeguards our environment, and builds community wealth.
Our members affirm the view of the Australian Business Council that red tape and bureaucracy involved in obtaining permits, licenses, and other approvals along with the lengthy delays at getting a response to a letter or clarity on a matter. Time is money. The time lost waiting can mean the difference between success and failure for many small businesses.
Overregulation can be crippling. Australian Business Council say, regulation done poorly, strangles economic development, limits new investment and opportunities, and jeopardises business efforts to provide higher living standards for communities.
The Australian Chamber of Commerce and Industry article in 2022, confirm the view of others when they say reducing red tape fuels the economy.
Our members are clear, that the biggest challenge for their business locally is red tape. It is a deterrent for local businesses to grow and thrive in the region. Regardless of size, all businesses face the same set of obstacles and hurdles when it comes to dealing with and facing the daunting task for navigating the red tape pathway.
Toowoomba is lucky. It is home to a diverse range of industries all catering for small businesses from sole traders to large corporations. A critical factor in helping weather the economic storms. But just because we are the lucky ones, it does not mean that regular and ongoing oversight of regulation should not occur. In fact, if the goal is to support the community, it should be core local government business to review and understand regulatory impacts on business and regularly reported on publicly.
Do you agree?
At the Chamber, we care deeply and passionately about this issue. And that is why, we called for an Administration and Red Tape Reduction Taskforce. Although the idea of an open and transparent process of red tape reform was rejected, an alternative has been proposed by Toowoomba Regional Council. The alternative is we provide Toowoomba Regional Council specific details of the issue, interaction, process, paperwork or regulation that is considered to be excessive that can be reviewed and acted on.
Do you have any specific examples of administrative and red tape challenges you have faced with Toowoomba Regional Council?
Let us know by emailing admin@toowoombachamber.com.au. We will stand up for you issue!
The Toowoomba Chamber of Commerce strongly believes that the Toowoomba Regional Council has a duty to support and foster the growth of local businesses. Reducing red tape and bureaucracy is an essential ingredient in enabling businesses will be better equipped to grow, invest, and create jobs in our community.
Just ask the Institute of Public Affairs, Australian Business Council and Australian Chamber of Commerce.
Lucas Wegener | Executive Officer Toowoomba Chamber
