The cost of new law

Otago University researchers have found:

University of Otago, Wellington researchers have just published a study that estimates for the first time the average cost of producing a new law in New Zealand.

The research shows a new act costs on average $3.5 million, while a regulation is estimated to cost around $530,000.

The researchers developed a method that analysed the number of acts and regulations passed in Parliament from 1999 to 2010. They then considered the costs of running Parliament, particularly ‘sitting days’, when MPs debate new laws. Also taken into account were the costs of policy advice from government agencies related to law-making.

Their full report is here. A quote:

We estimated that, between 1999 and 2010, 26.7% of parliamentary resources and 16.7% of policy advice from government agencies were devoted to generating new laws in New Zealand.

A reminder that Parliament is not just about laws.

If a new law costs $3.5m on average, then that should be the minimum test for whether a law is needed. Is the problem the new law seeks to fix so large that it is worth spending $3.5m on fixing (and that is before we even get into the impact of the law).

Hat Tip: Homepaddock