Print

06 January 2010

Local Councils have become the most disliked administrator of red tape on NSW businesses, overtaking the ATO, according to a survey by NSW’s largest business organisation, NSW Business Chamber.

NSW Business Chamber undertook its annual Red Tape Survey of over 400 businesses during December 2009.

Of significant concern is that nearly a quarter (24%) of businesses surveyed said that the burden of red tape from all levels of government was preventing their businesses from growing and creating more job opportunities, with a further one-third (33%) of businesses expressing concern about future growth.

“This survey shows that the costs of red tape on NSW businesses are growing not shrinking,” said Stephen Cartwright, CEO of NSW Business Chamber.

“Red tape is an impediment to growth and impacts costs, profits and employment.

“The Red Tape survey demonstrates that the real laggards in terms of working with business are, in fact, local government.

“NSW is governed by over 150 Local Councils with 41 local government areas in the Sydney metropolitan area alone - Local government has become a refuge for inefficiency and it is being felt in shops, factories and offices across NSW.

“At a time when employers should be focusing their attention on the economic recovery from the GFC and creating new jobs, they are being bogged down by costly and unnecessary red tape.”

According to the Red Tape Survey, the three agencies which rate the highest in terms of red tape are:

1. Local Councils
2. Australian Taxation Office (ATO)
3. Office of Industrial Relations (NSW)

Local Councils also led as the poorest communicators compared to the NSW and Federal Governments with nearly two out of five (39.4%) businesses saying they rarely know about new developments and reviews.  Only one in every twenty businesses (4.4%) describes local government as good communicators.

When it comes to the ongoing cost and time burden of operating a business, employing staff and paying taxes are the heaviest burden on business operators.

“It simply makes no sense that the most significant burden of red tape is in the area of “employing workers” - surely this should be the one area where it should be easy and not difficult.”

The Red Tape Survey also highlights the areas where government can improve its performance in dealing with business.  The three most highly ranked measures for reducing the cost of compliance are:                                                                                                                                               

> Reduce the frequency of reporting requirements to a minimum;

> Agencies sharing information and making sure there are no duplicate information requirements; and

> Better communication and consultation with businesses when developing new regulations.

View the full survey report [PDF]