“(But) my counsel to the industry is that the red tape is not going away so we have to find a way to cope with it rather than arguing that it should magically be made to disappear.”
The cost of administering red tape for the public sector is estimated at about $27 billion per year. The private sector then spends about $67 billion complying with government red tape. In addition to that, companies then impose a further $21 billion of cost implementing their own form of red tape, and then spend a whopping $134 billion complying with their own regulations.
“Now, that seems like a hell of a lot of money to me and kind of implausible,” Mr Cann told the conference.
Citing industry estimates that Australian productivity equates to about 65 per cent of that of the US gulf coast, Mr Cann’s presentation at SEAAOC was a sobering reminder of the blown out costs associated with doing business in such a hazardous, highly scrutinised industry.