Summarised by Centrist
David Seymour’s Ministry for Regulation’s inaugural annual report shows that it cost about $20 million to establish and operate during its first 16 months. Staffing made up $13.3 million of that total.
Seymour rejects the idea that the ministry is not delivering value: “We knew people would say that, and that is why we asked Motu Research to review our methodology. They say it is legitimate.”
The ministry highlights twelve regulatory changes in its cost-benefit modelling. Across a ten-year horizon, the projected benefits range between $223 million and $337 million.
Journalist Lloyd Burr notes the logic provided in the report: “Because the benefits of the changes we have already made will accrue over the next decade. They are not realised in one year.”
Seymour says the return is significant. “Every dollar invested has delivered eleven to seventeen dollars in public benefit.” Burr contrasts this with the figures for policy changes already implemented, which return between one and three dollars for every dollar spent.
The report excludes several policies with the ministry also acknowledging “Not all impacts could be monetised.”
Burr reports lower estimates show taxpayers only breaking even, but Seymour argues the returns are still strong: “There are some things that governments do where, unfortunately, the return is less than one dollar, and that is a waste. A three-dollar payoff is a pretty decent return.”
