‘This is about creating certainty and confidence’: Businesses to benefit from red tape rollback

A new report has recommended the rollback of tonnes of red tape. Read what will change.

Ninety-five percent of business operators had experienced significant delays in obtaining project approvals and 100 per cent said they would support more risk-based approvals, the NT Government’s Approvals Fast-Track Taskforce’s inaugural report has revealed.

In other findings, 88 per cent of respondents said regulatory requirements weren’t clear or easy to understand and 69 per cent believed there were duplicative and unnecessary steps in the approval process.

The taskforce’s Saying Yes to Business report made 22 recommendations and 70 recommended actions built around modernising compliance, limiting unnecessary regulatory touchpoints, enabling greater delegation, increasing certainty, driving system-wide improvements and strengthening regulator stewardship.

The NT Government has accepted 60 of those recommended actions in full, and a further 10 in principle.

Red Tape taskforce chair Mark Garraway.

To begin the regulatory rollback, it has already made system changes to enable the Department of Lands, Planning and Environment, rather than the Development Consent Authority, to determine applications to clear native vegetation for horticultural or agricultural purposes on unzoned and some zoned land.

In addition, a list of pre-approved place-specific and theme-based place names have already been applied to the Holtze land release and have been created to streamline the residential development process.

The report contained case-studies that identified specific areas of regulatory over-compliance.

In one, a Darwin-based hospitality business owner wanted to hold a laneway event for up to 1500 people, to reinvigorate the city as a hospitality destination.

The report said the business owner faced high costs associated with parts of the application process, including a traffic management plan costing around $2500, identified by the Taskforce as “a significant barrier for holding a small event”.

The report identified a lack of clarity in the special events application process, including frameworks or guidelines to facilitate the event.

Outdated systems and processes, including systems that could not save applications mid-process, and outdated requirements for print media advertising, further added to the challenge.

Chief Minister Lia Finocchiaro. Picture: Pema Tamang Pakhrin

“The NT has the second highest proportion of public sector employment compared to total employment, behind only the Australian Capital Territory,” the report said

“Public sector employment has grown faster than Gross Territory Product (GTP) growth over the past five years.

“Despite this, we do not experience more effective and timely approvals processes.”

The NT Chamber of Commerce conducted interviews, focus groups and one-on-one engagements with about 40 mostly small Territory businesses over three weeks to determine the impact of red tape on businesses.

Another case study focused on a longstanding NT fruit farming operator who requested approval to clear around 60 per cent of newly acquired land in a property next to their established farm.

The business faced several issues in communicating with the department, and felt the process was complex and disproportionate to the activity for which they were seeking approval.

The time frames seemed unreasonably lengthy and unpredictable - with the first application taking over nine months to resolve.

“Part of this delay included an appeal by the DCA, which added a three to four month delay to the application. The approvals processes have now been completed and the agency is looking at how the process could be simplified, given the issues identified,” it said.

Chief Minister Lia Finocchiaro said the changes would make a difference.

“These reforms will streamline processes, improve certainty for investors, and help build a stronger, more diversified economy,” she said.

“As part of our year of action, certainty and security, we continue to be focused on rebuilding the economy and delivering on our promises to Territorians.”

Chair of the Approvals Fast Track Taskforce, Mark Garraway, said the release of the report marked an important step forward for the Northern Territory’s economy.

“The Territory Government has undertaken its critical first step in turning around the NT’s economy. This is about creating certainty and confidence,” he said.

“The taskforce adopted a measured approach to its reforms by using a risk-based model to lessen regulation burden on predominantly small and medium sized territory businesses.

Chaired by former Property Council NT president Mark Garraway, Taskforce members include Michael Buckley (M & J Builders), Tony Smith (NT Link), Stuart Kenny (Territory Instruments), Dan Richards (Humpty Doo Barramundi), Andrew Dalglish (Foxalicious Fruit), Hermanus Louw (Louw Group) and Bec Bullen (various businesses).