52
t h e n ew no rma l
| 2 01 2
government-led
change & regulation
In all sectors, at least 10% of
Chief Executives rated compliance
with government regulations
and other legal aspects as
among their top three to five
challenges. For the Public sector,
this was a particular challenge,
mainly because of the strong
views of local government and
educational institutions.
governement-l ed change & regulat ion
0%
5%
10%
15%
20%
25%
PRIVATE SECTOR
PUBLIC SECTOR
NOT-FOR-PROFIT SECTOR
[ 5
th most highly ranked item ]
[
Outside the 10 most highly ranked items ]
[
Outside the 10 most highly ranked items ]
ultural Barriers
0%
5%
10%
15%
20%
25%
PRIVATE SECTOR
PUBLIC SECTOR
NOT-FOR-PROFIT SECTOR
[ 6
th most highly ranked item ]
[
Outside the 10 most highly ranked items ]
[ 5
th most highly ranked item ]
)
war for
talent
vt led change
0
10
PRIVATE SECTOR
PUBLIC SECTOR
NOT-FOR-PROFIT SECTOR
[ 6
th most highly ranked item
[
Outside the 10 most highly r
[ 5
th most highly ranked item
0%
5%
10%
15%
20%
25%
PRIVATE SECTOR
PUBLIC SECTOR
NOT-FOR-PROFIT SECTOR
[
Outside the 10 most highly
ranked items ]
[ 3
rd most highly ranked item ]
[
Outside the 10 most highly ranked items ]
0%
5%
10%
15%
20%
25%
PRIVATE SECTOR
PUBLIC SECTOR
NOT-FOR-PROFIT SECTOR
[ 10
th most highly ranked item ]
[ 9
th most highly ranked item ]
[ 4
th most highly ranked item ]
11)
social
sponsibility
alogue with
hareholders
PRIVATE SECTOR
PUBLIC SECTOR
NOT-FOR-PROFIT SECTOR
[ 2
nd most highly ranked item ]
[ 6
th most highly ranked item ]
[ 10
th most highly ranked item ]
There is no regulator accountability for the
costs and impacts they are having on business.
CEO
| Banking & Financial Services Business
The way Chief Executives saw it,
multiple government changes in policy
and legislation put “barriers in the
way of carrying out business”. Chief
Executives described an “excessive” and
“
unnecessary” onslaught of regulation,
“
much of which is attempting to solve
problems that don’t exist”, with “no
regulator accountability for the costs
and impact they are having on business”
and a “constant tinkering with legislation”.
A wide range of regulatory issues was
mentioned, including pricing caps, the
carbon-trading tax, the introduction of
KiwiSaver, financial markets’ regulatory
reform and local government reform.
In Chief Executives’ minds, the regulation
is increasing in intensity and complexity,
which, in turn, increases compliance
costs. There is uncertainty about what
will be next on the regulatory front,
noting that it is difficult to “keep up”
with the “u-turns on major government
policy with changes in government”.
“
Managing regulators” is a challenge.
Chief Executives perceived that regulatory
change poses three risks in particular:
It creates disincentives for long-term
investors in certain industries.
It escalates costs, particularly when
there is duplication of legislation in a
trans-Tasman context and between
New Zealand agencies.
It compromises organisations’ abilities
to compete with those who don’t face
those regulations – for example, online
retailers and importers from overseas.
One retailer noted that “online service
providers are being allowed greater
flexibility with regulation than other
business models”. Another noted that
“
the failure of government to demand
quality conditions of our competitors
or even to enforce the current
regulations has the potential to
undermine our standards and
therefore our business”. One Public
sector Chief Executive said that their
organisation simply “fails to maintain
international rankings, markets
and staff as a consequence of
government controls”.
key findings //
10:
government- led change & regul ation