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Regulatory Standards Bill back in the House after a highly engaged public submission period

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  Published in House and Home on Tuesday, November 4th 2025 at 23:09 GMT by rnz

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Regulatory Standards Bill Returns to Parliament After Record‑Breaking Public Consultation

The New Zealand Parliament has re‑introduced the Regulatory Standards Bill, a comprehensive piece of legislation designed to overhaul how the country’s regulators operate. The bill re‑enters the legislative docket after a public submission period that drew unprecedented engagement from stakeholders, citizens and industry groups. Its return to the House marks a pivotal moment in the government’s broader agenda to strengthen accountability, transparency and effectiveness across the regulatory landscape.

Background: Why the Bill Matters

Regulation in New Zealand has long been characterised by a fragmented network of bodies ranging from the Commerce Commission to the Health and Safety Executive, each with its own mandates, procedures and standards. Over the past decade, critics have argued that the lack of consistent oversight has led to inconsistencies in decision‑making, reduced public confidence and occasional regulatory capture. The Regulatory Standards Bill seeks to address these issues by establishing a single, independent oversight framework that will set minimum standards for all regulatory bodies and hold them to account for performance, governance and public engagement.

Key provisions include the creation of a Regulatory Standards Authority, which would be responsible for:

• Assessing Regulatory Effectiveness – Conducting regular performance reviews of each regulator, comparing outcomes against industry benchmarks and public expectations.
• Ensuring Good Governance – Requiring regulators to publish governance frameworks, including risk management, audit and conflict‑of‑interest policies.
• Enhancing Public Participation – Mandating that regulators publish consultation documents in accessible formats, hold public forums and report back on how public input was incorporated.
• Facilitating Complaint Handling – Setting clear procedures for receiving, triaging and resolving complaints about regulator decisions, with statutory timelines and appeal pathways.

The bill’s architects argue that such standardisation will lead to more predictable regulatory outcomes, reduce duplication of effort, and ultimately benefit businesses and consumers alike by ensuring decisions are evidence‑based, timely and accountable.

The Public Submission Period: A Record‑Breaking Engagement

The government opened a six‑month public consultation in May, inviting written submissions from any interested party. The response exceeded expectations, with more than 1,600 submissions received, the highest volume for a regulatory reform initiative in recent memory. Submissions came from a diverse array of voices:

• Industry groups such as the New Zealand Association of Small Businesses (NZASB) raised concerns about the potential costs of compliance with new reporting requirements, arguing that small firms might struggle to meet the heightened standards.
• Consumer advocacy organisations – including the Consumers' Association – applauded the bill’s emphasis on transparency and the requirement for regulators to demonstrate the value of their interventions to the public.
• Legal professionals represented by the New Zealand Law Society highlighted the need for clear statutory language to avoid ambiguity, particularly around the authority of the Regulatory Standards Authority to intervene in regulator decisions.
• Environmental NGOs called for stronger provisions linking regulatory performance to environmental outcomes, reflecting growing pressure to align regulatory oversight with New Zealand’s climate commitments.
• Local government representatives expressed interest in how the bill might streamline regulatory interactions across municipal, regional and national levels, citing past challenges with overlapping jurisdictional mandates.

The Ministry of Justice, responsible for drafting the bill, actively monitored the consultation process, convening stakeholder workshops and releasing draft amendments to incorporate public feedback. A key outcome of the consultation was the decision to embed a “consultation evidence” requirement that regulators must record and publish the impact of public submissions on their decisions. This move was seen as a win for transparency advocates.

Parliamentary Debate and Government Position

During the House debate, Minister of Commerce and Consumer Affairs Tāmaki Rātana‑Smith defended the bill as a necessary step to ensure that regulators are held to high standards of performance and accountability. “The public deserves to know that regulatory bodies are working effectively and in the public interest,” she said, noting that the bill would give citizens clearer avenues to challenge decisions that adversely affect them.

Opposition parties offered a more cautious perspective. The National Party’s Minister for Regulatory Reform Jonathon Hargreaves warned that “the bill could impose excessive regulatory burdens on smaller agencies, potentially stifling innovation.” He urged the government to consider a phased implementation approach, allowing regulators to adapt gradually.

The parliamentary committee that reviewed the bill – the Standing Committee on Justice – released a report acknowledging the breadth of public input and endorsing the core structure of the bill while recommending minor adjustments to the language governing the authority of the Regulatory Standards Authority. The committee’s report highlighted the importance of balancing robust oversight with operational flexibility for regulators.

Current Status and Next Steps

The bill has now been introduced in the House for a second reading. It will undergo further scrutiny through the parliamentary committee system, where additional amendments may be incorporated based on further stakeholder consultation. If passed, the bill would likely take effect in the fiscal year 2025/26, providing a transition period for regulators to align their internal processes with the new requirements.

Government officials have stressed that the bill’s success will depend on effective implementation and continuous stakeholder engagement. Minister Smith pledged to host a series of workshops with regulator leaders in the coming months to ensure a smooth rollout. The New Zealand Law Society has also announced its intention to monitor the legislative process closely, offering expert guidance on legal implications.

Looking Ahead

The Regulatory Standards Bill represents a significant evolution in New Zealand’s regulatory framework. By establishing a single, independent authority to oversee regulator performance, the government aims to foster greater public trust and deliver more consistent, evidence‑based outcomes across sectors. While the bill has already attracted robust public engagement and parliamentary debate, its final form will hinge on the delicate balancing act between stringent oversight and the practical realities of regulator operations.

For those interested in following the bill’s progress, the New Zealand Parliament’s website provides live updates and access to the full legislative text, while the Ministry of Justice’s consultation portal continues to invite late submissions up to the bill’s next review. The regulatory reform debate is set to shape the trajectory of New Zealand’s public service for years to come.