This memorandum implements Cabinet's decision to require departments and agencies to include in their guarantees of service a commitment to process licence applications or grant approvals within a stated maximum period.

The decision applies to all licences, permits and permissions, registrations and approvals required by the NSW Government including applications for approvals or licences to conduct an occupation, conduct commercial activity or undertake a prescribed activity. Processing of both new applications and of renewals is covered by this memorandum.

The decision does not cover concurrent approvals sought from State agencies by local councils under the Environmental Planning and Assessment Act and associated instruments because s.80 of that Act already requires a response to local council requests within 40 days (or a longer period when this has been indicated to the applicant). However, agencies should regard the 40 day limit in these cases as the broad maximum and make all reasonable efforts to reduce response times well below this period. Because the Local Government Act deems a council to have refused an application after the expiry of the relevant time specified in the Act, this memorandum does not apply to local council decisions.

Where State Government agencies regularly rely on other agencies to offer advice or agreement before approvals or licences are granted, a joint guarantee of prompt service should be negotiated and publicised to the agencies' customers. Each agency should only be held accountable for processes that are within its own control. Contingencies should be explained to applicants so that they can plan as best as is possible.

The determination of applications for approvals and licences is an important area of interaction between government and the community. Indeed, for many individuals and businesses, their application is their only real contact with government.

Delay in processing applications for approvals and licences is a consistent theme in the criticisms of the regulatory process from the business sector. What business wants most is predictability. The Government's decision to require agencies to provide a guarantee of prompt service is one response to this concern by business.

The Government's policy is to:

(i) require each department or agency with responsibility for granting licences or approvals to specify a maximum response time;

(ii) require each department and agency to provide an explanation to applicants for any delay beyond this agreed period and indicate to applicants the date by which a determination will be reached;

(iii) require departments and agencies which fail to provide an explanation for any delay in making a determination to refund any application or licence fee.

I ask you to ensure that within the next two months each agency in your portfolio establishes maximum response times for each licence or approval they administer and incorporate the commitment into its published Guarantee of Service and the performance contract of the agency's Chief Executive Officer.

I also ask you to ensure that all staff in agencies in your portfolio are aware of the requirement to advise applicants of any delay in the processing of their application beyond the time specified in the Guarantee of Prompt Service and the requirement for an agency to refund any application fee if no explanation for the delay is given. The provision of explanations will help business understand the accountability requirements on State agencies.

Chief Executive Officers of agencies should monitor the adequacy and accuracy of advices to applicants in cases where processing of the application has been delayed to ensure the processing period is not routinely extended by the agency.

The Office of Public Management will be monitoring progress in regard to guarantees of prompt service across the New South Wales public sector to promote adoption of the shortest realistic response time, and to ensure that agencies include a statement of commitment to continuous improvement in response times in their Guarantees of Service.

John Fahey,
Premier.