Why do we have so many regulations in modern societies? And why is there always someone calling for more in response to a wide range of issues and situations.

The chair of Australia's Productivity Commission Gary Banks has an explanation.

Speaking in Wellington this week he told how an imaginary accident involving a child's outdoor toy could quickly escalate to a new regulation.

The incident might be an isolated one, but a media beat-up could senasationalise the injuries and the danger to others.

The political opposition and other groups would call for government action. The government, wanting to allay public concern and to look like a caring and responsible government, would look around for a fix.

A 'solution' would be devised quickly and then officials would be tasked to develop the policy rationale.

In the process a Regulatory Impact Statement might be produced, but that and the proposed policy would be criticised for being too narrow, too wide, or for having unintended side effects.

Perhaps all three criticisms would be voiced by different groups.

A government that didn't know what to do might give the whole problem to a regulator with wide discretion to sort it out.

Finding that a local manufacturer made similar product to the one involved in the incident added a whole new layer of complexity.

Good policy making required a measured approach with careful definition of the problem, objectives, options, costs and benefits and after proper consultation, Mr Banks said.

The rush to regulate was created by the public demand for instant solutions to every problem that arose and by the politicians' willingness to gratify that need.