Regulatory Regimes and Organised Crime: Report (html)

11. Detailing the evaluation strategy

11.117 Any regulatory response to organised crime infiltration should be periodically evaluated to determine whether the nature and extent of the risk factors for infiltration have changed, and whether the regulatory objectives are being achieved. A regulatory response may require modification in response to this evaluation.

11.118 As the Victorian Guide to Regulation observes, an evaluation strategy should be designed at the outset of a regulatory response so that appropriate data can be collected during the implementation phase for the purpose of evaluation.[1]

11.119 Consultation with occupation and industry members should be a priority for any evaluation strategy. Just as industry collaboration is important when developing a regulatory response, it is equally important that industry contribute to the evaluation of that response. Occupation/industry members may have unique insights into the operation of regulatory strategies in practice (including the existence of any perverse incentives for organised crime infiltration), barriers to the engagement of occupation/industry members in regulation, the utility and scope of enforcement action, and the degree to which organised crime infiltration has receded or increased following the implementation of the regulatory response.

11.120 An evaluation strategy should also involve inter-agency consultation to determine whether organised crime groups have been displaced to other occupations or industries within Victoria, or to other states or territories. Where displacement has occurred, consideration should be given to whether the level of regulatory intervention needs to be reduced in one industry and increased in another.

11.121 In addition, the evaluation of a regulatory regime should seek to ascertain the extent to which an occupation or industry has matured and engages in self-regulation. Less regulatory intervention may be warranted where occupation/industry members are acting as effective ‘guardians’ against organised crime infiltration (through, for example, a strong professional association), or where the occupation/industry has become more profitable and members are less susceptible to corruption by organised crime groups.

  1. Department of Treasury and Finance, Victorian Guide to Regulation (December 2014) 35.

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