As debate over the proposed Regulatory Standards Bill (RSB) intensifies, economist Dr Bryce Wilkinson has stepped forward to defend the bill’s core principles, pushing back against claims that it prioritises private property rights over broader social and environmental concerns. A long-time advocate for regulatory reform, Wilkinson argues that the bill is essential for improving the quality of regulation in New Zealand, ensuring that new laws are subject to rigorous cost-benefit analysis and greater transparency.
Strengthening Regulatory Discipline
The Regulatory Standards Bill, currently in its consultation phase, seeks to introduce a set of principles to guide regulatory decision-making, including transparency, economic efficiency, and protection of property rights. The bill proposes the establishment of a Regulatory Standards Board, which would have the authority to review regulations and issue non-binding recommendations when inconsistencies arise.
Wilkinson, a senior fellow at The New Zealand Initiative, has been a leading proponent of regulatory reform since 2001. He sees the RSB as a crucial step toward ensuring that regulations are justified, comparing it to the Public Finance Act, which brought greater fiscal discipline to government spending.
“The central idea is that Parliament should do a better job of justifying laws by comparing them with established principles,” Wilkinson told BusinessDesk. He emphasised that while Parliament would still have the ability to pass laws that deviate from these principles, the bill would at least require lawmakers to acknowledge such departures publicly.
Regulation Minister David Seymour, who has championed the bill as part of ACT’s coalition agreement with National, argues that New Zealand’s low productivity is tied to excessive and inefficient regulation. To lift productivity and wages, ACT’s coalition agreement includes a commitment to pass a Regulatory Standards Act,” Seymour said in a press release last year announcing the next steps for the bill.
Critics Warn of Property Rights Focus
However, the bill has drawn significant criticism from legal experts, environmental groups, and Māori advocates. Critics argue that the bill places disproportionate emphasis on property rights, potentially undermining regulations designed to protect the environment, public health, and social equity.
Legal scholar Emeritus Professor Jane Kelsey has warned that the bill’s principles could be used to challenge laws that impact property values or profitability, such as climate change policies, mining restrictions, or public health measures like tobacco regulations.
The Law Society has also raised concerns, suggesting that the Regulatory Standards Board could become a forum for relitigating policy decisions without any real legislative authority. “The proposed principles merely create a language for policy arguments for those who might be motivated to invoke the procedures of the proposed Regulatory Standards Board,” it noted in a submission.
Wilkinson’s Counterarguments
Wilkinson, however, has rejected claims that the bill ignores broader societal concerns. He insists that cost-benefit analysis is a key part of the regulatory process, ensuring that new laws are assessed not just for their intended benefits but also for their unintended consequences.
On the issue of public health regulations, Wilkinson acknowledges concerns about policies such as tobacco restrictions but maintains that the debate should focus on balancing competing interests rather than ideological positions. “Saying that it’s bad for people’s health is a relevant consideration, but people who get pleasure out of smoking, that’s an offsetting consideration,” he said.
Wilkinson has also defended the bill’s stance on property rights, arguing that fair compensation for regulatory takings is a fundamental principle of good governance. He points to the historical injustices of Māori land confiscation, emphasising that the right to compensation should be recognised in New Zealand law. “The crucial right is the right to compensation,” he said. “Look at the grief of Māori land confiscation. Protection is so important that it has to be an essential test.”
Political Momentum and Next Steps
Despite the controversy, the Regulatory Standards Bill is expected to advance, with National and ACT committed to passing the legislation as part of their coalition agreement. The Ministry of Regulation has received nearly 23,000 public submissions on the discussion document, many of them in the final days before the consultation period closed on January 13, 2025.
The government is now drafting the bill, which will be introduced to Parliament later this year. There will be further opportunities for public feedback during the select committee process.