MDU BBA NOTES
Government And Business Interface
Government And Business
It is widely recognized that “the two most powerful institutions in society today are business and government; where they meet on common ground – amicably or otherwise – together they determine public policy, both foreign and domestic for a nation”.Government And Business
Historically, the government’s role in business varied considerably in kind and degree, from laissez-faire and mercantilism to conventional communism characterized by centralized planning and almost state monopoly. The last six-and-a-half decades or so, the period since the end of the II World War and the coming into being of World Bank – IMF and GATT (the forerunner of WTO), have witnessed several shifts, evolutionary to revolutionary, in the approach, policy, and mode of government intervention in business across the world. The economic crisis that swept across the globe around 2008 once again demonstrated the economic stabilization role of the government.
- The contractual arrangements and exchanges needed for the market operation cannot exist without the protection and enforcement of a governmentally provided legal structure.
- The claim that the market mechanism leads to efficient resource use (i.e., produces what consumers want most and does so in the cheapest way) is based on the condition of the competitive factors and product markets. This means that there must be no obstacles to free entry and that consumers and producers must have full market knowledge. Government regulation or other measures are needed to secure these conditions.
- Even if all barriers to competition were removed, the production or consumption characteristics of certain goods are such that these goods cannot be provided through the market. Problems of “externalities” arise which lead to “market failure” and require solutions through the public sector.
- The rate of discount used in the valuing of future (relative to present) consumption may differ as seen from a public and a private point of view.
- The market system, especially in a highly developed financial economy, does not necessarily bring high employment, price level stability, and the socially desired rate of economic growth. Public policy is needed to secure these objectives.
- Social values may require adjustments in the distribution of income and wealth, which results from the market system and from the transmission of property rights through inheritance.
Governments Business Interface
Governments Business Interface
Accessibility of Information
The Issues Paper recognises that the provision of easily accessible information is an essential element of reducing
the regulatory burdens faced by businesses. It is also true that the NSW Government has taken steps to try to make
it easier for businesses to find relevant information about regulatory requirements, through initiatives such as the
Business Licence Information Service (BLIS), and the Government Information (Public Access) Act 2009 (the GIPA
Forms and Online Applications
The Issues Paper recognises that forms should be as simple and easy to understand as possible. It would also be
helpful if the consistency of forms across and between agencies could be improved. As businesses will often have
to deal with a number of separate agencies, and complete a variety of forms, it would also be useful if these forms
could use consistent language and style as much as possible, to assist with ease of understanding and ensure
Notification of Changes and Online Updating
All agencies should allow businesses to update their details online. The provision of online updating is a simple and
effective way of reducing compliance costs for businesses, while at the same time reducing administrative costs for
Government. In addition, where agencies charge businesses processing fees for updating details, provision of an
online service would facilitate a reduction in fees or their elimination altogether.
Renewals should be made available online where possible. While recognising that there may be some areas where
online renewal would be inappropriate, online provision should be adopted unless an agency can demonstrate
otherwise through a risk based assessment.
Information sharing can help to reduce business compliance costs by reducing the number of times that businesses
need to provide the same piece of information to government. While acknowledging that some individuals and
businesses may have privacy concerns about the sharing of information, an opt out clause would adequately
address this. So long as the information sharing is properly used to reduce administrative burdens it is likely to be
well received by the community and businesses.
Restoration of Licences
The Issues Paper notes that section 10 of the LRUP Act allows applications to be made for the restoration of
licences. Under the legislation, the right to apply for restoration of a licence is not time limited. However, a number
of licences currently restrict the restoration period to three months.
It is unclear why some regulators see a need to apply a time limit to this facility. Allowing applications for restoration
reduces administrative burdens on both the applicant and the regulator. It is unclear what purpose is served by the
imposition of a time limit.