$3.5 million to make new law

14/05/2012

University of Otago, Wellington researchers have published a study that estimates for the first time the average cost of producing a new law in New Zealand.

The research shows a new act costs on average $3.5 million, while a regulation is estimated to cost around $530,000.

The researchers developed a method that analysed the number of acts and regulations passed in Parliament from 1999 to 2010. They then considered the costs of running Parliament, particularly ‘sitting days’, when MPs debate new laws. Also taken into account were the costs of policy advice from government agencies related to law-making.

That’s an interesting finding.

The cost-benefit ratio showing how well, or not, the law worked would be even more so.

Lead researcher, Associate Professor Nick Wilson, says that “whilst the findings are of interest in themselves, since law making is funded by our taxes, the key reason we performed this study was to work out the cost-effectiveness of health interventions that use laws, versus those using other approaches such as media and education campaigns or GP visits.”  . . .

Co-author, Professor Tony Blakely explains that there’s now a strong scientific basis for the use of the law as a public health instrument.

“One recent analysis identified 65 systematic reviews of studies on the effectiveness of 52 public health laws. Most of these laws were found to have achieved their health objectives covering such areas as: injury prevention, housing improvements, tobacco control, promoting vaccination, reducing violence, and improving food safety,” he says.

The University of Otago researchers are planning to use these results in future research on the cost-effectiveness of new laws in this country. Such new laws could include those on tobacco, alcohol and dietary hazards such as salt and saturated fat.

“We suspect that public health laws in particular are very good value for money – just like the law that made restaurants and pubs smokefree. But we need to study the cost-effectiveness of laws so political decision makers can make informed policy,” says Associate Professor Wilson. . .

A scientific basis for legislation showing cost-effectiveness is a very good idea.