Deregulation reform news: what did the IWG on deregulation work on at the last meeting?

✅ The review of the system of state supervision and control has begun. The reform of the activity of state inspections aims to rebuild the system of inspections from punitive to preventive, increase the service component of control and optimize the number of state inspections and their areas.

Why is this important?

State inspections have always been associated with corruption among Ukrainian entrepreneurs. After all, the existing state control system is mainly focused on detecting business violations and applying sanctions in the form of fines. Year after year, every second inspection records a violation – but the number of violations, despite the fines applied, does not decrease. In addition, entrepreneurs are challenging the imposition of fines in court in their favor.

The IWG plans to focus on finding ways to solve two key problems:

  1. The activity of control bodies is aimed at detecting violations and applying sanctions, not at preventing offences (punitive-repressive nature). Bills No 5837 and No 5838 (increasing inspectors’ fines) are designed to change the control system from punitive to preventive with an emphasis on a risk-oriented approach to business inspections. To remind, bill No 5837, in the development of which BRDO participated, is now awaiting its first reading.
  2. The large amount of control and supervisory functions of the inspectorates leads to a duplication of powers and a double burden on entrepreneurs. To reduce the number of inspections and control functions, the analysis of the powers of bodies and spheres of control within the framework of meetings of the IWG on deregulation and the submission to the Government of the IWG’s generalized recommendations for making a final decision will help.

✅ Also during the meeting, the preliminary concept of reforming the nature protection sphere was presented. As a result, the main function of environmental supervision bodies should change from holding harmful enterprises to responsibility to stopping damage to the environment.

The main principles of the work of the new state nature protection inspection were determined:

  • manufacturability (inspectors will be provided with the necessary technical equipment);
  • preventive work;
  • a modern approach (use of satellite data, access to registers and databases, work of an analytical center);
  • updated personnel policy, including qualification training and employment of war veterans.

In general, the IWG on deregulation as part of reforming the work of state supervision and control bodies plans to review the work of 50 supervisory bodies in 126 areas of their activity.

With the support of the USAID Program “Competitive Economy of Ukraine”, BRDO prepares analytics on the feasibility of maintaining or canceling regulations, participates in meetings of the IWG and the development of relevant regulatory and legal acts.