This Memorandum reaffirms the NSW Government’s obligations under the Mutual Recognition Agreement (MRA) and the Trans-Tasman Mutual Recognition Arrangement (TTMRA).

The MRA and TTMRA give effect to mutual recognition principles relating to the sale of goods and the registration of occupations. The principles are that, subject to certain exceptions:

• any good that may legally be sold in another participating jurisdiction can also be sold in NSW, regardless of differences in standards or some other sale-related regulatory requirements; and
• any person registered to practise an occupation in another participating jurisdiction can practise an equivalent occupation in NSW, without the need to undergo further testing or examination.

These principles are reciprocated by other participating jurisdictions in relation to goods that may be legally sold in NSW, and NSW registered occupations.

The MRA between the Commonwealth and the States and Territories commenced operation in 1993. The TTMRA, which extends mutual recognition to New Zealand, commenced operation in 1998. The legal obligations arise from the Mutual Recognition Act 1992 and the Trans-Tasman Mutual Recognition Act 1997 of the Commonwealth. The associated legislation in NSW includes the Mutual Recognition (New South Wales) Act 1992 and the Trans-Tasman Mutual Recognition (New South Wales) Act 1996.

The MRA and TTMRA have helped facilitate the growth of trade opportunities by removing unnecessary regulatory impediments to trade in goods within Australia and between Australia and New Zealand. The benefits flowing from mutual recognition include lower costs to business, improved industry competitiveness, greater choice for consumers and improved occupational mobility.

More information on the schemes can be found on the Council of Australian Governments (COAG) website: http://www.coag.gov.au/recognition.htm

All relevant NSW Government officers should be aware of NSW’s obligations under these mutual recognition schemes. Officials should ensure that, where appropriate, mutual recognition principles are considered early in legislative and other regulatory policy processes. It is particularly important that these obligations are taken into account where prohibitions or restrictions on goods or occupations are being considered.

Ministers should also pay particular attention to the following findings of the 2003 Productivity Commission Evaluation of the Mutual Recognition Schemes:

• where a national standard has been developed through a Ministerial Council, and the relevant NSW Minister does not intend to directly adopt that standard, this should be made clear to the Ministerial Council as soon as possible to see if differences can be resolved [Finding 6.3];
• in considering exemptions to the Trans-Tasman Mutual Recognition Arrangement, Ministerial Councils should ensure that the exemptions are defined as narrowly as possible and that they only apply to products or laws where no further integration is possible or desired [Finding 8.2]; and
• whenever new standards for a product are being developed within Australia, consultations should occur with New Zealand counterparts to ensure any impacts on production, mutual recognition and trade can be identified early [Finding 8.3].

The Productivity Commission has recently commenced a further Review of Mutual Recognition Schemes at the request of the Council of Australian Governments. The Commission will present its research findings to Australian Heads of Government and the New Zealand Prime Minister in January 2009.

The Department of Premier and Cabinet is the main coordinating agency for mutual recognition issues. It will be working closely with other relevant NSW Government agencies during the course of the Productivity Commission review.

In addition, improvements are being made to achieve greater consistency and transparency of mutual recognition of occupational licences within Australia. The Mutual Recognition Act 1992 of the Commonwealth enables Ministers from two or more States or Territories to jointly declare that specified occupations are equivalent, and also to declare any conditions necessary to achieve equivalence. Jurisdictions have worked together successfully to achieve Ministerial declarations covering a range of occupations identified as a priority by COAG in 2006.

Further work is underway to extend these arrangements to other vocationally-trained occupations. The Department of Premier and Cabinet will liaise with Ministers’ Offices and agencies where necessary, as part of this process. Further details on licence equivalency are available from: http://www.licencerecognition.gov.au.

Morris Iemma
Premier