The Inspector’s Dilemma

Martin Stanley

Public bodies do many things, not all of them necessarily at the front of mind when we think about what governments do and how those things might be done better. One of those things is, broadly, inspection – checking to see that requirement which should be met are being met (and sometimes to see whether failures reflect inadequate requirements or poor compliance). The existence of regulation and inspection raise an important question about the attribution of responsibility: does the very existence of a regulatory system shift responsibility inappropriately, does it in effect create a form of moral hazard? And if the answer turns out in practice to be to fudge the issue, the consequences may turn out to be very bad.

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