The SCM is an internationally recognised method to quantify burdens caused by legally induced information and reporting obligations. This refers to all data to be submitted, maintained or transferred to authorities or third parties. This includes, for instance, application a request for children’s allowance or unemployment pay, filing in a tax return, or notifying a change of residence. Restricting to information obligations means to focus on the objectively observable part of bureaucracy. For example, examining a private pension scheme (Riester pension) we do not focus on whether or not the payments to be made under this scheme are justified. Rather, the model measures the amount of paperwork to be handled in order to have a legitimate claim for assistance. The results obtained are used as a basis to identify unnecessary or disproportionate burdens and to reduce red tape in the specified fields.
How does the Standard Cost Model work?
Following international examples, administrative burdens have comprehensively been measured since 2007 also in Germany. Due to the programme size, this is done in several steps. First, the costs of the target group of businesses were quantified. Currently, a survey of citizens is being conducted regarding the administrative burden they face. Later, the costs incurred by authorities will be covered, too.
The time spent is determined by asking respondents how much time they needed to perform individual work steps, e. g. for obtaining the required forms, making calculations, writing letters. Such work steps are also referred to as “standard activities”, which is the origin of the model’s name.
To calculate the financial burden, charges and other costs – e. g. regarding postage or packaging material, advice received or purchases required – are covered and stored.
For enterprises, the costs of staff engaged in fulfilling the obligations and of further purchases were determined in Euros. For citizens, the time spent is shown in hours. The time and costs thus covered are multiplied by the number of units concerned in any year. This gives an objective picture of the administrative burden caused by an information obligation in Germany. The results illustrate the size and distribution of administrative burdens for the general public.
An exact description of the approach in Germany can be found in the Federal Government’s Methodological Manual that was published in August 2006. Downloads:
