Review of mutual recognition schemes (2009)
Research report
This research report was released on 6 February 2009.
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Review of Mutual Recognition Schemes - Research report by chapters (Word/Zip - 2088 Kb)Key Points
- Mutual recognition is a low-cost, decentralised means of dealing with interjurisdictional differences in laws and regulations.
- The Mutual Recognition Agreement (MRA) and the Trans-Tasman Mutual Recognition Arrangement (TTMRA) have increased the mobility of goods and labour around Australia and across the Tasman.
- Greater mobility of goods and labour is a potential source of economic benefits, and is consistent with a move to a seamless Australian economy and a single trans-Tasman market.
- The schemes operate less effectively on the occupations side than on the goods side.
- Differences in occupational standards between jurisdictions are a source of regulator concern, due to the potential for deficient standards to cause harm.
- Allowing ongoing professional development and criminal record checks for mutual recognition registrants, that already apply to local registrants, would mitigate some of the risks created by interjurisdictional differences in standards.
- On the goods side, the efficiency and effectiveness of the schemes could be improved through an expansion of their coverage.
- A range of goods are currently exempted but could now be mutually recognised. They include most gas appliances under the TTMRA and goods covered by Australian ozone protection laws under the MRA.
- In some areas, the impetus towards trans-Tasman mutual recognition or harmonisation has stalled, creating unnecessary costs for stakeholders.
- Unless the New Zealand Parliament can soon pass legislation enacting a joint regulatory regime, the special exemption for therapeutic goods should become a permanent exemption, so as to avoid uncertainty.
- Aspects of the machinery of the schemes should be improved to reduce the administrative and legal burden they create for governments and other stakeholders.
- Cooperation programs associated with special exemptions under the TTMRA should have a rollover and reporting period lasting up to three years.
- Regulators often do not meet their mutual recognition obligations, and firms and individuals do not make full use of the schemes.
- Two specialist units should be created to facilitate the operation of mutual recognition of goods and occupations, through the provision of advice, complaint resolution, monitoring and awareness raising.
- Bilateral engagement by Australia and New Zealand with third countries creates more opportunities than risks for the mutual recognition partner, as long as mutual recognition implications are taken into account before agreements are made.
- Amendments to the mutual recognition legislation are urgently needed to remedy ambiguities and omissions in the Acts, as well as to enable the schemes to reach their full potential.
