Micheál Martin (Cork South Central, Fianna Fail)

In response to the business regulation forum recommendation and to progress the agenda of reducing administrative burdens for business, I established the high-level group on business regulation under the chairmanship of the Secretary General of my Department. The high-level group comprises representatives of Departments and agencies, the business sector and a representative of ICTU.

The business regulation forum did not recommend the introduction of the standard cost model as applied in the Netherlands and Denmark. Instead, the forum recommended that "given the resource implications associated with undertaking a full baseline measurement exercise, a prioritised and selective approach is the most realistic way forward for Ireland." The high-level group is pursuing such a prioritised and selective approach.

The high-level group has decided to focus initially on ways to reduce, simplify and eliminate unnecessary administrative burdens and associated costs in the five priority areas identified in the business regulation forum's report and will capture the savings arising from the work on a case by case basis. The five priority areas identified by the forum are taxation, statistical reporting, environmental regulations, health and safety regulations and company and employment law. I expect the group to submit an initial report to me by July 2008.

In the recent past I have taken several initiatives to help reduce the administrative burden on business. These include audit exemption, as at the end of last year legislation was introduced to raise the audit exemption thresholds applying to small companies in respect of turnover and balance sheet to €7.3 million and €3.65 million, respectively. The previous thresholds were €1.5 million and €1.9 million. This will remove the compulsory annual audit costs from the very large number of companies qualifying from the enhanced exemption level.

In July 2007 the Government approved the general scheme of the companies consolidation and reform Bill as prepared by the company law review group and the Bill is currently being drafted. The proposals will bring the existing 13 Companies Acts into one and, in addition to a number of significant proposed reforms, will make it easier for firms and practitioners to understand and comply with the law relating to the incorporation and operation of companies in Ireland.

In June 2007, new regulations were introduced to include in one text virtually all of the specific health and safety laws which apply generally to all employment. This replaces and repeals a wide list of existing legislation. The new regulations are designed to be user-friendly and to assist those referring to health and safety regulations to find most of the general safety provisions in one text.

I take this opportunity to welcome Deputy Varadkar to this area of policy and I look forward to ongoing engagement with him.

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