2018-08-07 S&O Agenda - Att 1 to Item 7 - Public Interest Test Report

                         Public Interest Test Plan — Noosa Shire Council
Administration and Other Local Laws (Amendment) Local Law (No. 1) 2018 and Administration and Other
Subordinate Local Laws (Amendment) Subordinate Local Law (No. 1) 2018                       Page 13

       Industry accreditation

       Master licensing

       Negative licensing

       Empowering consumers

Of the above, two alternatives were chosen for further consideration. These were:

       Co-regulation

       Negative licensing

Co-regulation - The legal instruments and administrative arrangements involved with co-regulation
are much the same as with local government regulation. The difference is that the “rules” are drafted
in close consultation and cooperation with affected parties. The advantages of this approach is that a
higher level of compliance with the rules can be expected because those who are affected by the
rules have agreed to them.

Under a co-regulation regime the local law would be redrafted in consultation with the current
approval holders and other stakeholders.

Negative licensing - Under conventional licensing regimes there is usually a requirement to obtain
an approval or similar approval prior to entering the market to engage in a particular business activity.
Under a negative licensing regime there is no requirement to first obtain an approval to enter the
market. The presumption in this regime is that operators are prepared to play by the rules if they
know what the rules are. No approval is required and no fees are paid. Other characteristics of a
negative licensing regime include:

       notification that an operator is in a particular line of business is “collected” during the course
        of day-to-day business, rather than prior to commencement;

       operators are charged a token fee for certification that their operations comply with standards;

       operators who wilfully fail to comply are fined heavily and immediately;

       the rules/requirements and details about the availability of training are published periodically;

       consumers are educated as well as operators;

       complaints are responded to swiftly and forcefully.

Under a negative licensing regime the local law would be amended to remove the requirement to hold
an approval to carry on the business of the prescribed activity. The local law would specify a range of
generic standards which must be complied with in relation to the conduct of the business and set
penalties for non-compliance with the standards. A small fee would be charged for certification that
premises comply with the standards set by the local law. The local law would retain the current
enforcement framework with any necessary amendments.