INTRODUCTION

3.1  Before any possible action by government is contemplated, it is important to identify a clear need which it is in the national interest for government to address. Accordingly, a statement of the rationale for intervention should be developed.

Key questions for justifying action:

  Is the rationale for intervention clear?

  Is it reasonable to assume that intervention will be cost-effective: i.e. that the benefits of intervention will exceed the costs?