Mutual Recognition Agreement Legislation Review
Executive Summary and Recommendations
The Commonwealth, States and Territories were jointly responsible for implementing the mutual recognition principle in the law of Australia, following the realisation that the existence of multiple regulatory environments across the States and Territories was impeding freedom of trade, and compromising the ability of the nation to compete in the international economy.
The aim of the mutual recognition legislation was to create a truly national market for goods and services, establishing a regulatory environment which would encourage enterprise, enable business and industry to maximise their efficiency, and promote international competitiveness.
The experience of the States and Territories of Australia was that there was already a high degree of public confidence in the existence of a satisfactory minimum standard of regulation of goods and services in Australia.
An administratively simple strategy for achieving a national market in goods and services in Australia was required, resulting in mutual recognition of regulatory standards of the States and Territories relating to goods and occupations.
The effect of mutual recognition legislation is that goods which are legally saleable in one jurisdiction are satisfactory for sale throughout the country, and people who work in a registered occupation in one jurisdiction can freely enter an equivalent occupation in other jurisdictions.
The Report of the Review Group is an assessment of the operation of the mutual recognition scheme.
After advertising the Review nationally in The Weekend Australian and the Australian Financial Review, calling for public submissions, and independently inviting regulatory authorities across the country to make submissions to the Review, the Review Group was in receipt of approximately 94 submissions, and 99 questionnaires (see Appendices D and F).
The Review found that after half a decade in operation, the available evidence of people who use mutual recognition is that the scheme is generally working well to minimise the impediments to freedom of trade in goods and services, and to establish a truly national market in goods and services in Australia.
The Review data, and data from the information paper Impact of Mutual Recognition on Regulations in Australia: A Preliminary Assessment (Office of Regulation Review, 1997), would indicate that the operation of the mutual recognition scheme has had the following impact on consumers, industry, the labour force, and the regulatory practices of government:
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increasing competition and consumer choice, and decreasing business costs, including compliance costs;
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accelerating the development of national standards in areas with significant implications for public health, safety and the environment;
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increasing discipline on the introduction of standards and regulations;
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enhancing the mobility of people in registered occupations; and
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increasing cooperation between regulatory agencies in harmonising regulatory requirements and exchanging information.
A commentary on the impact of mutual recognition is available in Appendix E of the Report.
TopRecommendations
Recommendation 1
That jurisdictions endorse the continuation of the MRA. Jurisdictions note that clause 7.1.3 of the Agreement governs the continued operation of the MRA.
Recommendation 2
That the MRA not be extended to cover regulatory requirements relating to the use of goods, but that the COAG Committee on Regulatory Reform continue to monitor this issue to ensure use requirements are not used to undermine the objectives of the MRA.
Recommendation 3
That the Ministerial Council on Consumer Affairs develop national arrangements for product recalls and product safety bans to ensure consistent approaches between jurisdictions to banning and/or recall of dangerous products.
Recommendation 4
Where jurisdictions are concerned about variations in the standards or other regulatory requirements relating to goods, these issues should be resolved by the relevant Ministerial Council, through the use of the Temporary Exemption or referral mechanism
Recommendation 5
That the Industry Ministers' Council consider carrying out an awareness campaign aimed at raising the awareness among manufacturers and retailers of mutual recognition.
Recommendation 6
That occupational registration authorities consider, where appropriate, the development of a national practising certificate based on mutually agreed registration requirements.
Recommendation 7
That occupational registration authorities put in place formal mechanisms for inter-jurisdictional communication and cooperation to establish a forum in which issues relating to mutual recognition can be discussed and resolved.
Recommendation 8
That jurisdictions make greater use of the referral mechanism contained in the MRA where concerns exist as to the competency of persons registered in other jurisdictions.
Recommendation 9
That governments should consider greater use of national competition reviews of occupations where appropriate to reduce the prospects of increasing inconsistency in regulation which reduces mobility of occupations between jurisdictions.
Recommendation10
In carrying out individual State or Territory National Competition Policy reviews, governments should consider the impact of their recommendations on the mobility of persons in registered occupations under the MRA.
Recommendation 11
That when reviewing occupational registration and business licensing in the context of National Competition Policy reforms, governments should consider separating statutory requirements for occupational registration and business licensing, so as to not restrict the ownership of businesses to those registered to practise in the occupations which relate to the services provided by the business.
Recommendation 12
That the COAG Committee on Regulatory Reform examine the potential for the Mutual Recognition Agreement to be extended to cover business licenses.
Recommendation 13
That the COAG Committee on Regulatory Reform examine the potential to extend the Mutual Recognition Agreement to cover non-traditional, statutory-based forms of occupational regulation such as negative licensing and co-regulation.
Recommendation 14
That Participating Parties maintain the reference to firearms and other prohibited or offensive weapons in the Permanent Exemption Schedule of the Mutual Recognition Act 1992 (Schedule 1(1)).
Recommendation 15
The Participating Parties maintain the reference to fireworks in the Permanent Exemption Schedule of the Mutual Recognition Act 1992 (Schedule 1(2)).
Recommendation 16
That the Participating Parties maintain the reference to gaming machines in the Permanent Exemption Schedule to the Mutual Recognition Act 1992 (Schedule 1(3)).
Recommendation 17
That the Participating Parties maintain the reference to pornographic material in the Permanent Exemption Schedule to the Mutual Recognition Act 1992 (Schedule 1(4)).
Recommendation 18
That the Participating Parties maintain the reference to a law of a State regarding quarantine in the Permanent Exemption Schedule to the Mutual Recognition Act 1992 (Schedule 2(1)).
Recommendation 19
That the Participating Parties maintain the reference to a law of a State regarding endangered species in the Permanent Exemption Schedule to the Mutual Recognition Act 1992 (Schedule 2(2)).
Recommendation 20
That the Participating Parties maintain the reference to ozone protection legislation in the Permanent Exemption Schedule to the Mutual Recognition Act 1992 (Schedule 2(3)).
Recommendation 21
That the Participating Parties maintain the Permanent Exemption for the South Australian beverage container deposit scheme, and that the Commonwealth Government amend their mutual recognition legislation to read "Environment Protection Act 1993: Part 8, Division 2 – Beverage Containers".
Recommendation 22
That the Participating Parties maintain the reference to a law of Tasmania regarding the possession, sale or capture of fish of a minimum size in the Permanent Exemption Schedule to the Mutual Recognition Act 1992 (Schedule 2(10)).
Recommendation 23
That the Participating Parties maintain the exception relating to the manner of sale of goods.
Recommendation 24
That the COAG Committee on Regulatory Reform assess the issue of inconsistent packaging and labelling requirements for drugs and poisons, and if appropriate, develop for consideration by Heads of Government, amendments to the Mutual Recognition Act 1992 to ensure that the scheme does cover packaging and labelling requirements for drugs and poisons.
Recommendation 25
That the exception relating to the transport, storage and handling of goods, and inspection of goods, be retained.
Recommendation 26
That the COAG Committee on Regulatory Reform examine the potential for developing national standards for the transport, storage and handling of goods for which there is variable regulation across jurisdictions.
Recommendation 27
That the COAG Committee on Regulatory Reform develop for consideration by Heads of Government, amendments to the Mutual Recognition Act 1992 aimed at ensuring that packaging and labelling requirements relating to transport, storage and handling, in particular, requirements relating to Material Safety Data Sheets are covered by the mutual recognition principle.
Recommendation 28
That in regard to occupations, the COAG Committee on Regulatory Reform consider carrying out a survey of occupational registration agencies at least once before the next five year review.
Recommendation 29
That in regard to goods, the Industry Ministers' Council consider alternative means of gathering information regarding the impact of the MRA on goods, including the use of ABS surveys.
Recommendation 30
That further reviews of the MRA, to consider potential improvements to the scheme, take place every 5 years. That the next review take place in 2003 in conjunction with the first review of the TTMRA.