"Regulatory
intervention can be necessary, but generally
should be used only as a last resort, and
then only if it can be shown that it is likely
to be more effective than other means. Prescriptive
state regulation, which we call classic regulation
for the purpose of this report, can be welcome
– it creates certainty, for example,
setting out the bounds within which business
can operate. Classic regulation can be the
best way to regulate. But depending on the
issue, and the desired outcome, there are
other approaches which should be considered
and which may be better. The option of not
intervening, of ‘doing nothing’,
is always open. This should always be seriously
considered.
A wide range of options is available. These
range from classic regulation, where people
are required to behave in certain ways, to
information and education campaigns where
people change their behaviour of their own
accord. Other methods include using economic,
tax and market mechanisms; self regulation;
and coregulation."
