KEY POINTS:
The Government has indicated it is open to backing a Rodney Hide bill that would subject new laws and regulations to a vigorous red-tape audit - although the Epsom MP may have to make some concessions to get his legislation passed.
In a further indication of a warming relationship between Act and Labour, both sides are talking of a compromise that could potentially see Mr Hide gain enough support to get his member's bill passed.
The Regulatory Responsibility Bill proposes to test laws and regulations against a series of questions, such as "Why is it needed?", "Will it work?" and "Does it infringe on anybody's property rights?".
The bill passed its first reading with an overwhelming majority after Mr Hide secured the support of both the Labour and National parties, as well as New Zealand First, the Maori Party, United Future, the Progressives, and Independent MP Gordon Copeland.
But now he needs to sew up enough support to get the bill through its next stages and it appears that Labour is seriously considering whether the legislation could be altered enough to allow it to vote for it.
Commerce Minister Lianne Dalziel yesterday said she would be watching what came out of submissions on the bill to a select committee today, and had agreed to have some economic development officials advise on it.
"Ms Dalziel said, "I personally still would rather see how what we've done works in practice - but we live in an MMP environment, and he's certainly indicated that he doesn't see the current wording of the bill as the bottom line position."
Ms Dalziel is set to unveil the results of her own review of regulations today, and she also pointed out that changes had been made earlier this year to the regime around regulations.
She said the Law Commission had raised some "very serious concerns" about the quality of Mr Hide's bill, and the potential it could open up parliamentary processes to judicial scrutiny.
However, she said there had been some "substantial" submissions made on it, and if people were prepared to sit down and talk to each other then maybe a solution could be found.
Mr Hide was last night hopeful of overcoming differences between Labour and Act on some of the bill's provisions.
"There are some differences of a philosophical nature, but now we have a legislative vehicle to deal with red tape into the future," he said.
Bills being introduced into Parliament have carried a regulatory impact statement for several years, but Mr Hide's bill proposes to strengthen that and make it a legal requirement.
Government agencies would be required to state the reasons for a regulation, its effect on property and other legal rights, and to assess alternative options.
The proponents of a new bill would have to do the same, and to clearly state if the new law did restrict a property right or potentially have unintended consequences.
Every five years all laws and regulations would be reassessed to make sure they were still needed, and if they were not they would be removed.
