Transcript Skaidrė 1 - LR Vyriausybė

Cutting business red tape
Viceminister of Economy
Giedrius Kadziauskas
7th July 2011
Link to the National Reform Agenda
 Improvement of business environment is among
key structural reforms (National Reform Agenda)
aimed at ensuring favourable conditions for
economic growth
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Better Business Environment at MoE
I. RIA (systemic)
 evaluating impact on
SMEs
 ex-ante and ex-post
evaluation of impacts
(including on admin
burdens)
 evaluating impact on 4
freedoms/EU market
operation (pilot project)
III. Consultations with
businesses (“Sunrise”)
 ad-hoc proposals from
businesses
 opinions on decisions in
blocks I and II
II. Better Regulation initiatives
 reduction of admin burdens by 30%
(information obligations)
 licensing reform – Services
Directive and other sectors
 “Doing Business” reports’ analysis
(target to reach top-15)
IV. Reform of Business Inspections
 optimisation of supervision functions
I. Regulatory Impact Assessment
(RIA)
Main problems:
 Legal requirements are in place, however RIA often perceived as
a formal procedural step
 Lack of competence among line ministries to evaluate impacts
from other fields, to find alternatives, to carry out cost-benefit
analysis, to quantify impacts. Limited consultation with
businesses
 No RIA quality and compliance control mechanism (no external
watchdog, etc.)
 Lack of time for in-depth analysis
 Often RIA is carried out after the decision to regulate and how to
regulate is made  no real alternatives analyzed
 Limited political demand for RIAs. Limited impact of RIAs on
political decision making
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II. Reduction of administrative burdens
 AB reduction target: 30 % by 2012 in 7 priority areas
 Priority areas by number of information obligations and
business activity:
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Transport (520)
Tax administration (163)
Labour relations (129)
Statistics (83)
Environment protection (54)
Real estate operations (38)
Territory planning and construction (31)
 In 2010, 150 legislative acts reducing regulatory burden
(among it – AB) to businesses prepared (>120 adopted)
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Reduction of administrative burdens
(II)
Further actions to implement the AB reduction target:
 AB reduction action plan for 2011 approved by the Government
encompasses 82 measures, ~9% AB↓ in quantitative terms
 Jun.’11, first AB measurement results in Tax, Empl., Construction
areas
 Evaluation of impact of all new draft legislation on AB to business
Main problems:
 Ministries have highest level of expertise but limited knowledge on
AB and low self-initiative. They also are running out of “low
hanging fruits”
 Political pressure for more horizontal measures = more complex
analysis and more e-solutions  time and money constraints
 Additional input expected from external consultants up to Nov.’11,
but slow public procurement procedures
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Licencing Reform
Trigered by Services Directive:
 About 800 legal acts revised in order to simplify legislation and reduce
administrative burden for business by abolishing discriminatory,
disproportionate and unnecessary requirements;
 40 laws and more than 250 other legal acts (including local authorities)
amended in order to comply with Services Directive;
 6 authorizations (licences, permits) abolished by the Parliament and 7
replaced by less stringent regulation;
 Comparing the situation in Nordic/Baltic cluster, Lithuania has
abolished more authorizations than Latvia, Estonia, Finland and
Sweden.
What's next:
 Law on Services pre-empts introduction of new burdensome
requirements;
 The National Anti-corruption Program, adopted by the Parliament
foresees screening of all licences, permits, etc. for 2011-2014
Doing Business reform (I)
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LT achieved steady progress during 2009-2010 in DB
reforms and moved from 26th to 23rd place among 183
economies.
Further progress achieved during 2010-2011 in the areas
of starting a business, dealing with construction permits,
protecting investors, closing a business, getting credit,
registering property, trading across borders and employing
workers.
Remaining bottlenecks include areas related to horizontal
issues, including the abolishment of the requirement to use
an official seal of the company (changes in around 100 leg.
acts), legislative changes requiring approval in the
Parliament (e.g. amendments in relation to changes in the
Civil Code or the minimum capital requirements of the PLC).
Doing Business reform (II)
Examples of implemented measures:
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Online registration has been launched for Private limited
companies with 2 and more shareholders speeding up the
process and cutting costs for business start-ups
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Getting the construction permits has been simplified with
considerably streamlined or slashed procedures speeding
up the process by roughly on third from 162 to 107 days
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The improvements of electronic registration of property
were made speeding up the timing for property registration
from 3 to 1 day as a result of streamlined procedures.
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New legislation on Restructuring of Enterprises came into
force, opening wider possibilities for restructuring of an
Enterprise.
III. Sunrise Commission
Sunrise Commission:
 Ad hoc proposals on improving environment to businesses
 Active in 2008-2010. Renewed activities in 2011
 Working groups in areas of Company Law, Labour Market
Regulation, Competitiveness Law, Public Procurement, Territory
Planning, Business Financing, Taxes, Bureaucratic Burden
Reduction.
 In 2009, 97 legal acts drafted, 64 adopted.
 In 2010, 9 legal acts drafted, 3 adopted.
Main issues:
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Narrow window of succesfull
Lack of drivers to implementation
Running low on proposals
Strong will to remain independent advisory body
Bottleneck at Parliament and Tripartite Council (esp. with regards to
employment relations proposals on work time reg.,10etc.)
IV. Reform of Business
Inspections (I)
 Goals:
“From punishment to advice”.
Reduce burden of inspections.
 Three pillars:
Cooperation of inspections.
Better regulation (entry into force).
 Improved methods of inspection (Attention to risk
areas, checklists for inspectors)
Reform of Business Inspections
(II)
 Three pillars:
Cooperation of inspections (joint work by inspectors
 reduction of inspections)
Better regulation (more predictable - entry into
force).
 Improved methods of inspection (Attention to risk
areas (planning inspections and objects, checklists
for inspectors)
Observations
Difficulties to generate independent systemic approach
Lack of representatite view of regulation burden
Significant level of customary non-compliance with regulation
Regulation is widely regarded as a tool to solve societal problems
Unreformable areas – labour law, territorial planning
Thank you for your attention.