John McGuinness (Carlow-Kilkenny, Fianna Fail)

That is efficiency.

The report of the high level group has identified more than €20 million in cost savings to business as a result of simplified administrative procedures of Government. The Government's commitment is to reduce the administrative burden on Irish business by 25% by 2012 and this demanding target is a key priority. The task of the high level group is to identify areas in which legislation has imposed an administrative burden, or red tape, on business and to recommend ways to reduce that burden without undermining the policy objectives behind the regulation. The work of the group is focused on concrete measures in specific policy areas, including taxation, statistics, environment, health and safety, employment and company law. The first report of the group sets out a number of instances in which procedures have been simplified, making it easier for business to deal with Government; for example, electronic filing of annual returns to the Companies Registration Office, on-line access to tax clearance certificates for Government contracts, increased exemption thresholds for VAT registration, and higher thresholds exempting small businesses from having to conduct statutory audits. In addition, further changes to reduce the burden on business are expected with regard to procedures for waste collection permits, road haulage permits and employment permits.

The work of the high level group is estimated to have saved Irish business €20 million in administrative costs this year through reductions in paperwork, revision of the rules for small businesses and provision for better use of on-line services. The rolling programme of work set out by the group must continue to be ambitious and I look forward to its continued work on the concrete suggestions put forward by the business sector. If the work of the group is to produce optimal benefits, businesses, especially small business, must continue to come forward with practical proposals for areas in which they feel the burden is greatest. Small businesses in particular have a lot to gain from participating in this process and making known areas in which they feel over-burdened by red tape. I encourage the business representatives on the high level group to continue to inform its work.

In addition to the work of the high level group, my Department has put in place a process across all Departments that will measure the administrative cost of red tape on business arising from domestic legislation. As in all other countries that have done this, it will take about a year and a half to complete the measurement process. In line with the recommendation of the Business Regulation Forum, we are adopting a prioritised approach. Initially, all Departments are required to list the information obligations which their regulations impose on business. Based on that listing, Departments will assess, in consultation with business, the most burdensome requirements and will measure their actual cost to business. At that point, the most appropriate approach to achieving the Government target of reducing by 25% the administrative burden of domestic regulation on business by 2012 will be determined. With regard to future regulations, the Government has agreed that all Departments should measure the administrative costs of regulations on business and specifically examine the impact on small businesses.

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