A Milestone for Legislative Transparency: Regulatory Standards Bill Becomes Law

The new law introduces stringent mechanisms to make the cost and logic of government regulation visible to the public, curtailing what Seymour described as “lazy thinking” in lawmaking and setting a new gold standard for evidence-based policy.

In a landmark development for legislative transparency and accountability, the New Zealand Parliament has passed the Regulatory Standards Bill into law, a move hailed by Regulation Minister David Seymour as a turning point for Kiwi democracy. The new law introduces stringent mechanisms to make the cost and logic of government regulation visible to the public, curtailing what Seymour described as “lazy thinking” in lawmaking and setting a new gold standard for evidence-based policy.

“This is a historic moment for Kiwis’ rights,” said Minister Seymour. “Politicians will no longer be able to hide the high regulatory costs they impose. From now on, voters will be able to see those costs clearly, law by law. Over time, this transparency will create political pressure to reduce them.”

A Fourth Pillar of Democratic Accountability

The Regulatory Standards Bill joins three foundational laws that safeguard New Zealanders’ rights: the Public Finance Act (1989), which exposes government debt; the Reserve Bank Act (1989), which protects against inflation; and the Bill of Rights Act (1990), which upholds individual freedoms. However, until now, the cost of regulatory burdens—particularly those that limit property rights or business freedoms—has remained hidden from public view.

“Bad regulations can be just as damaging as bad debt or inflation,” said Seymour. “This new law adds a fourth leg to the transparency table, holding lawmakers to account for the costs they impose on everyday New Zealanders.”

Transparency, Not Just Talk: A New Legal Standard

Unlike previous attempts at regulatory accountability—such as non-binding Regulatory Impact Statements—the new Act gives statutory force to transparency obligations. Key features of the law include:

• Principles of Responsible Regulation: Legislation will now be assessed against clear benchmarks that define what good regulation looks like, including necessity, proportionality, and respect for individual rights and property.

• Consistency Accountability Statements (CAS): For each piece of proposed legislation, a CAS must disclose the rationale, goals, and alternative options considered, along with an analysis of how the law affects liberties and property rights.

• Regulatory Standards Board: A newly established independent watchdog will monitor the quality of these statements and assess both new and existing laws for compliance with the regulatory principles.

• Retrospective Review Powers: The Board can initiate reviews of existing legislation on its own or in response to public complaints. Its findings will be made public, allowing voters to judge whether a law is justifiable or excessive.

• Support from Ministry for Regulation: The Ministry will be tasked with coordinating oversight and ensuring regulatory quality across the government.

Real-World Impact: A Story of Regulatory Overreach

To illustrate the human cost of poorly designed regulation, Seymour shared a poignant case from his own electorate. A woman who spent 45 years working, saving, and preparing for retirement saw her financial future crumble due to regulatory missteps.

Her apartment complex initiated maintenance that triggered obligations under the Earthquake-Prone Buildings legislation, passed in 2016. The subsequent strengthening works drained her savings. “What’s tragic,” Seymour noted, “is that the rules were later deemed unnecessary. She was punished by a regulation that never should have been passed.”

This, he argued, underscores the need for the new law. “The evidence was clear even in 2016, and I voted against the law. But without a legal requirement to justify and expose the cost of such regulations, many were happy to look the other way.”

Regulation With Recourse: Empowering the Public

According to Seymour, the real power of the Regulatory Standards Act lies in its ability to democratize regulation. By requiring transparency and enabling public scrutiny, it brings citizens closer to the Cabinet table.

“People will be able to see who gave the advice, what evidence was used, and why a particular path was chosen. If they disagree, they can vote accordingly. This law restores power to the people and makes regulators accountable.”

Looking Ahead: A Cultural Shift in Policymaking

The passage of the Regulatory Standards Bill marks the beginning of what Seymour hopes will be a cultural transformation in Wellington. Rather than rushing laws through without full scrutiny, he envisions a new era where political accountability, robust evidence, and regulatory restraint become the norm.

He concluded, “We owe it to every New Zealander—every worker, every saver, every entrepreneur—to ensure they are not being punished by unjustified, burdensome regulations. This Act brings sunlight into the process and gives people the tools to demand better from their lawmakers.”