Federal Small Business Minister, Craig Emerson, says a review by the NSW Government that could result in the removal of unnecessary occupational licences would make the State more attractive to qualified people from interstate.
Earlier this year, the Productivity Commission advised that inconsistencies between occupational licensing regimes should be the initial focus of the Rudd Government's attempts to reform Australia's consumer policy framework.
On 3 July 2008, COAG agreed to review the need to continue licensing occupations that are licensed in only one or two jurisdictions.
According to the issues paper accompanying the review, benefits of licensing include:
- Protecting consumers who have less information and knowledge than service providers about their needs, the services offered and the quality of services provided.
- Requiring certain licencees to hold relevant insurance.
- Regulating implications for public health and safety or other flow on impacts which are not necessarily reflected in the market transaction.
�Obviously, there is a need to ensure people have the proper skills to do their job,� Dr Emerson said. �However, unnecessary red tape that imposes significant compliance costs on businesses can only hinder a state's productivity and restrict service supply.�
Businesses face compliance costs in applying for and renewing licences and in meeting the requirements imposed on licence holders. Delays in hiring staff and reduced labour mobility have also been blamed on the scheme. Costs are likely to be passed on to consumers in the form of prices that are higher than would be the case if the licensing scheme did not exist.
The review looks at the specific impact of licensing on 11 occupations, including:
- Entertainment industry agent/manager
- Venue consultant
- Floor finisher and coverer
- Kit home supplier
- Lift mechanic
- Motor vehicle repairer
- Optical dispenser
- Property inspector (pre-purchase)
- Strata manager
- Structural landscaper
- Wool, hide and skin dealer
Despite government plans for deregulation, it is unclear whether feedback will support any changes. For example, the licensing of pre-purchase property inspectors was introduced less than five years ago in response to consumer complaints that inspections of dwellings or specialist work should be undertaken by qualified persons. Licensing is free of charge and consumers are charged a cost determined by the individual licensee. Consumers have welcomed the scheme and many are calling for increased, not decreased, accountability for members of the industry.
The issues paper is available at www.betterregulation.nsw.gov.au. Similar reviews are expected in other States and Territories soon.