Edition 62, November 2008

Draft report released reviewing mutual recognition

The Productivity Commission has released a draft research report on the review of the two main mutual recognition schemes in Australia.

According to the draft report, the mutual recognition schemes linking Australian states and territories and New Zealand have contributed to a more seamless national economy in Australia and a single economic market across the Tasman.

In an assessment of the two main mutual recognition schemes - the Mutual Recognition Agreement (MRA) and the Trans-Tasman Mutual Recognition Arrangement (TTMRA) - the Commission found that they have served the objectives of increasing the mobility of goods and labour.

Commissioner Judith Sloan noted that mutual recognition retains the scope for regulatory competition between jurisdictions while removing unnecessary barriers to the movement of goods and workers.

The Commission notes, however, that regulators do not always comply with mutual recognition obligations, and that firms and individuals do not use the schemes fully. These weaknesses should be addressed through greater legal certainty and redress, strengthened governance arrangements and a new awareness campaign.

The Commission is recommending a suite of changes to mutual recognition arrangements which, if implemented, would reduce the frictions currently affecting interjurisdictional flows of goods and people.

The Commission is also asking for feedback on a range of longer-term measures that could extend the reach of mutual recognition.

The Commission is seeking responses to its draft findings and recommendations, before presenting its final report to Australian Heads of Government and the New Zealand Prime Minister in early February 2009.

For more information visit www.pc.gov.au/projects/study/mutualrecognition/draft

This page was generated on 26 August, 2009

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