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Improving the relationship between Businesses and Government
Contents
1. Why is there a need for relationships?2. What actions can Business take?3. What action should government take? 4. The need for Regulation.5. Practical examples in reducing Red Tape.6. Tools for successfully reducing Red Tape. 7. How to develop a Red Tape reduction action
plan.
Why Should Businesses Work in Partnership with Government to Reduce Red Tape?
• Businesses may have first-hand experience of what the Red Tape problems are, as well as ideas on solutions.
• Business is interested in cutting Red Tape in order to reduce its costs of doing business.
• Government is interested because of the direct effect of cutting administration costs and contributing to economic development.
What actions can business take to Reduce Red Tape?• Ensure that there is a formal consultation mechanism between its
structures and government to raise issues and concerns, and discuss solutions and processes.
• Work with government, via an agreed process, to identify priority Red Tape problems that are negatively impacting on them.
• Place pressure on the government to reduce Red Tape Red Tape via the public media or other channels of communication. (e.g. the office of the Public Protector).
• NB: Business must ensure that they don’t engage in illegal activities and if they become aware of these, report them to the Police or Anti-Corruption HL.
What action should government take? • Cutting the burden of regulatory requirements on
businesses;• Cutting the information demands on businesses; • Creation of One Stop Shops and enhancing the use of
electronic services to reduce compliance costs• Getting the LG regulatory system in order;• Adopting “Tell Us Once” initiatives within departments,
this will allow the recycling and reuse of information already provided; and
• Develop an electronic “single windows” system for information on regulatory requirements.
• Setting and being accountable for meeting service standards;
• Building a culture of service excellence and professionalism;
• “Connecting the dots” for small businesses that must deal with many regulators; and
• Using plain language and providing clear, definitive interpretations.
• Better understanding the impact of regulations on small businesses.
Cutting Red Tape …Freeing Business to Grow, Recommendations Report, RTR Commission, Government of Canada, Jan 2012
The need for relevant and effective regulation for security?
Many businesses actually demand regulations to protect themselves by creating entry barriers, standards, checks and balances.
Tourism provides an example where guest houses often complain that ‘new entrants’ don't comply with certain standards.
Therefore, while businesses may complain about regulations, they would also be the first to complain if all the regulations were abolished.
Starting a B&B• Business registration CIPC• Financing • Regulation – Re-zoning – Building plans– Food handling and preparation– Liquor license– SARS – Grading (SAGC or equivalent)– Advertising (By-laws)– Labour (UIF, Minimum Wage, OHSA and others)– Procurement policies
Western Cape ‘red tape team’ saves 85 jobs
• CEO of AMC Daneel Diamond Ventures, Mr. Gert Janssen who is a Belgian citizen, was battling to obtain a permanent residence permit .
• In June 2013, he was told to be patient by the Department of Home Affairs where he applied for a permit 6 years ago.
• He reached a point where he seriously considered relocating the company to another country.
Intervention by the W C ‘red tape team’
• After proper intervention, his application was finalised within 2 weeks.
• In addition to creating 85 jobs for locals, AMC Daneel-Diamond Ventures has an annual turnover of close to R300m.
http://www.bdlive.co.za/national/2013/09/25/western-cape-red-tape-team-saves-85-jobs
CIPC and FNB Partnership • FNB will help to register your private company
with CIPC when you apply for a Business Account.• No need to visit the CIPC’s offices and stand in long
queues.• You will only pay the CIPC registration fee of R125.
(No additional charge for registration by FNB)• Using an enterprise number for trading, no need to
wait for lodgement for name reservation.
e-TshwaneIs a secure free online service that allows home owners, companies, property managing agents and tenants to view, download and make payments for all utilities accounts electronically anywhere and at any time.
Benefits: 1. Reduction in long queues. (time and money)2. No manual input or human errors in capturing references. 3. Removed human error and payment delays which are two of the
most common reasons for erroneous termination of services.4. The system is fully integrated with major Banks. (Immediate
payment systems)5. Access to full history of accounts and payments made ,6. The ability to interact with the Municipality in the form of
lodging complaints and queries and compliments electronically.
Service Delivery ExcellenceThere are three main determinants of customer service excellence - people, processes and technology.
People Processes Technology
Knowledge and Skills
Motivation
Capacity
Communication
Continuous training
Performance management
Clear objectives and goals
Aligned with technology
Effective and Efficient
Continuous improvement
Increased customer focus
Simple and clear UI
Reliable
Secure
Be of assistance
Linked to CRM
Synergy
A good process and process management system should have the following:
• A process champion, to ensuring that specific processes function well;
• A process goal or objective;• Process key performance indicators or standards and targets that
identify acceptable levels of service and/or time frames;• A monitoring and information system that measures, tracks, and
reports on the key performance indicators daily;• A management process that reviews the performance of the
process and takes corrective action to address under-performance if necessary.
1. How to develop action plans? SCM 1. Define the Red Tape problem Ineffective and inefficient supply chain
management (SCM) processes and controls result in municipal under-expenditure, corruption and not paying SP within 30 day’s
2. Identify causes of the Red Tape problem
• Insufficient SCM staff capacity and/or skills and experience.• Political interference in SCM processes .• Poorly designed SCM process and tender documents.
3. Identify Impacts of the Red TapeProblem
• Lengthy payment time frames to service providers • Under-expenditure contributes to a poor business environment
4. Develop Action Plans • Provide budget, to put in place scarce SCM skills/staff.• Ensure Municipal fraud and anti-corruption policies are in place and enforced.
NATIONAL STEERING COMMITTEENATIONAL STEERING COMMITTEE
PROVINCIAL DED
