This memorandum concerns the processes Ministerial Councils must abide by when considering national regulatory action and legislation review.

As Chair of the Council of Australian Governments (COAG), the Prime Minister has prepared the attached Memorandum on these issues. I endorse the Prime Minister's Memorandum, and all Ministers are to follow the processes outlined in it. The Memorandum is being circulated to all Commonwealth, State and Territory Ministers. Could you also make sure that all appropriate officials in agencies that report to you are aware of their responsibility to abide by the processes set out in the Prime Minister's Memorandum.

In particular I draw to your attention the revised COAG Principles and Guidelines for National Standard Setting and Regulatory Action, a copy of which is attached. The Principles and Guidelines can also be found on the Department of Prime Minister and Cabinet home page (www.dpmc.gov.au/coagpg.pdf). They were originally agreed to by COAG in 1995. In November 1997, COAG endorsed new arrangements to monitor compliance by Ministerial Councils and national regulatory bodies with the Principles and Guidelines.

Proposed standards and regulations made by New South Wales generally require a regulatory impact statement. The Principles and Guidelines complement this requirement and are designed to make sure that Ministerial Councils do not impose unnecessary regulatory burdens on the community. It is important that all Ministerial Councils and national standard setting bodies comply with the Principles and Guidelines when developing standards or regulatory action.

The Prime Minister's Memorandum also sets out arrangements for national legislation reviews that are being planned by Ministerial Councils. To ensure consistency in approach, the proposed terms of reference and the review arrangements for all national legislation reviews must be referred to the COAG Committee on Regulatory Reform for consideration.

I would appreciate your co-operation in making sure that these measures are implemented.

Bob Carr
Premier