Bertie Ahern (Dublin Central, Fianna Fail)

I will not deal with individual Departments but with the overall position. My reply was from the perspective of ensuring we reduce the burdens on business and citizens alike. Our watchword in regulating business is proportionality. The ESRI business regulation survey that I referred to in my reply has identified priorities for improving the regulatory environment for business. The findings of that survey are relatively positive and reveal that regulation ranks in the middle of the challenges faced by business, behind the concerns over labour costs and increased competition and ahead of concerns over infrastructure and staffing. It sits in the middle of the business agenda.

In general, business feels the amount of regulation is about right, although, obviously, a number of areas have been identified in the report that require specific action. Transport accessibility, mentioned in the 2001 report, has gone down the list, except perhaps for within the confines of Dublin, but it is not nearly as pressing in other areas. Other issues that still exist are taxation, mainly for smaller companies because larger companies are on-line and do not have difficulties with the Revenue Commissioners; health and safety which, rightly or wrongly, drives business mad because they believe it is too much regulation for them; environment law; statistical returns; and employment and company law. It is recognised nationally and internationally that our economy is lightly regulated but these issues have been highlighted in business surveys.

Initiatives are underway to ensure regulation does not result in increases in the cost burden or administrative red tape for business. I would not agree for a minute with doing away with health and safety regulation because we know why the legislation was put in place — wholescale abuses and safety issues for workers — but how we implement it and how people report on it can always be improved. We expect these initiatives to result in a measurable reduction in the regulatory compliance burden for business and I hope they work.

I accept that Irish businesses have legitimate concerns about the regulatory burden. That is why regulatory impact assessments are so important. Before any legislation, statutory instrument or other action is introduced, people must follow the six principles outlined. I take the point that the assessments are not compulsory and I agree with the Deputy that this should not be a voluntary position. The procedure is to ask if the regulation is necessary, can we reduce red tape, and whether the rules and structures that govern this area are still valid because many of them are dated.

As regards effectiveness, one must consider whether the regulation is properly targeted and will be complied with and properly enforced. On proportionality, we must ask if we are satisfied that the advantages outweigh the disadvantages of the regulation, and if there is a smarter way of achieving the same result. That is what businesses usually say because they are not against doing it if there is a better way — sometimes there is and sometimes there is not.

On transparency, the question arises as to whether we have consulted with the stakeholders prior to regulating. We have now got on top of that point, given that the social partners, including businesses and trade unions, are involved in it. Therefore, before regulating, there is a discussion with the stakeholders as to whether it is necessary. Under the regulation, accountability makes it clear precisely who is responsible for whom and for what. Business people also feel strongly about an effective appeals process. One must also ask whether the regulation will give rise to anomalies and inconsistencies given the other regulations already in place, and whether we are applying best practice in developing one area while relegating others.

In each area those questions must be answered and there is consultation about them. It can slow up the system but in the longer term it is better. Before any statutory instruments, legislation or regulations are undertaken that process will take place across Departments.

The Competition Authority has now completed the reports on professions, including engineering, architecture, optometry and law. A preliminary report has been completed on the dental profession and the final report is due this month. It is expected that the report on veterinary surgeons will be published at the beginning of 2008, while the report on medical practitioners will follow towards the end of next year. A number of these matters have already been inserted in legislation or are awaiting forthcoming legislation.

See this speech in context