Full Membership of the Organisation Internationale de Métrologie Légale - Regulatory Impact and Compliance Cost Statement

August 2003

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Statement of the Net Benefit of the Proposal, Including the Total Regulatory Costs (Administrative, Compliance and Economic Costs) and Benefits (Including Non-Quantifiable Benefits) of the Proposal, and Other Feasible Options

• Government
• Industry
• The Economy

Government

• The increase in fees will enable the government to fully recover the costs of pattern approval;
• If the Trading Standards Service continues to charge less than the cost of providing the services, there may be an influx of applications from other jurisdictions because of the comparatively lower fees. The increased fee level would reduce possible overseas criticism that the approval service is subsidised, as New Zealand fees are currently lower than Australia and the United Kingdom.
• The increased fees will also be sufficient to allow New Zealand to become a full member of OIML and to service that membership;

Industry

• An increase of $53 per hour (74%) for pattern approval work would cost approval submitters, on aggregate, about $29,000 (incl. GST) a year;
• An increase of $46.25 per hour (59%) to contestable fees will cost, on aggregate about $43,000 (incl. GST) to accredited persons;
• Exporters of measuring and weighing equipment will no longer be required to submit instruments for approval in multiple jurisdictions; and
• Suppliers of auditing and calibration services can better compete with the Trading Standards Service as the fees charged by the Trading Standards Service more closely reflect market rates.

The Economy

There is an element of private good benefit to submitters of weighing and measuring instruments who will avoid costs associated with re-submitting instruments in multiple jurisdictions, and public good benefit of full membership of OIML. These public good benefits relate to legal measurements in water, gas, electricity, health, road safety, occupational safety, the environment and general provisions of good metrology legislation that promotes harmonisation.

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