Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 33: To ask the Minister for Enterprise, Trade and Employment his views on whether it would be appropriate for Ireland to set itself a target for a reduction in administrative and regulatory burdens on small business along the lines of the model recently introduced by the Dutch Government; and if he will make a statement on the matter. [18239/05]

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 265: To ask the Minister for Enterprise, Trade and Employment if he will consider bringing forward legislation or plans to cut the growing costs of regulation on business such as is being planned in the UK with the Regulatory Reform Bill; if clear targets for such reductions in red tape as was adopted in the Netherlands will be introduced; and if he will make a statement on the matter. [17817/05]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 33 and 265 together.

While centrally, the better regulation issue is being driven by the Department of the Taoiseach and the better regulation group, I support any initiative aimed at keeping to a minimum the administrative and regulatory burdens on small business in Ireland. The Taoiseach launched the Government's White Paper on better regulation in January 2004 which sets out Government policies and an action plan for improving the quality of regulation as well as the regulatory process in the coming years. Many of the provisions in the White Paper replicate the approach being taken at EU level and in other member states.

As the primary regulator of business and of the workforce, my Department is well aware of the need for the best possible regulation as well as the continuing need for lighter and more focused laws. In this regard I am anxious to ensure that my Department's activities in reforming existing legislation and introducing new legislation conform with the principles of better regulation as set out in the White Paper. I am also aware of the recent report prepared for the Oireachtas Committee on Enterprise and Small Business which recommended a proactive approach to reducing regulation in the economy and that some consideration should be given to adopting an approach whereby specific targets would be set for reducing regulation within a specified timeframe. My Department is considering its response to this report.

While there is merit in monitoring the better regulation agenda in the Netherlands and in other member states, that is a matter for all Departments to take on board, and the Taoiseach's Department, which convenes the better regulation co-ordinating group, can assist that process across Government and regulatory bodies. My Department will assist that process with a view to reducing regulatory burdens, where possible. The best way forward is through implementing the specific actions set out in the Government White paper. I have instituted a review and regulatory impact analysis of the directors' compliance statement at section 45 of the Companies Act 2003. In addition, my Department is currently engaged in a number of other projects designed to improve the current regulatory environment, including the fundamental restructuring, consolidation and reform of existing company law; the modernisation of consumer legislation, with a view to producing a single modern Act to replace the broad set of legislation currently in force; a new safety, health and welfare at work Bill, which will set a new health and safety legal code for the next ten to 15 years; and the restatement of the Unfair Dismissals Acts 1977-1993, which will include all amendments to the Unfair Dismissals Acts in an up to date document.

The Government has agreed a programme of action in response to the report and recommendations of the review group on the role and functions of the employment rights bodies, which includes the harmonisation and consolidation of business employment rights legislation.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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It is precisely because the Taoiseach launched the document on better regulation in January 2004, but did nothing since that I asked this question. It is all very fine for the Minister to stand here and say what is in the Government White Paper. We know what is in it, but nothing has happened.

The Minister stands accused of imposing additional regulatory burdens on small businesses in recent years. The fact that he has acknowledged there is a problem means he, as part of the Government, has been somewhat responsible for some of these additional regulatory burdens on small businesses. In light of the problem in terms of the regulatory burden on small businesses in particular, will he set a target for the Government to reduce the administrative and legislative burdens in the same way as the Dutch Government did?

Micheál Martin (Cork South Central, Fianna Fail)
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I do not accept that nothing has been done. I have already outlined the programme of work under my Department, which dovetails with the recommendations of the White Paper, in particular the consolidation and simplification of existing legislation dating back over a long period. We are codifying, consolidating and simplifying that legislation for the benefit of those who come under its ambit.

I do not have a difficulty with the thrust of the Deputy's position. I intend to look at the area of small business and micro-enterprise specifically. In that context I can take on board the regulatory burden on small business in particular and the best ways to effect a reduction of that and make a proper evaluation of its impact on our competitiveness.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister was warned about the compliance statement and the difficulties it would have for directors when the legislation was going through the Oireachtas, but he chose to bulldoze his way through this.

Micheál Martin (Cork South Central, Fianna Fail)
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I was not in the Department then.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I know that, but I understand corporate governance still holds, although I am not sure about that at times. I am glad the Minister agrees with the report of the Oireachtas committee on this occasion although he may not have the same agreement with Deputy Howlin's questions on another Oireachtas committee report. In the Oireachtas committee report, in advance of the Minister's thinking on the issue — in order to prod him along — we have set the route towards ensuring that there will be less regulation and a more benign environment for small businesses. Will the Minister agree to come before the Oireachtas committee at the earliest opportunity to discuss the contents of that report and to respond as quickly as possible?

Micheál Martin (Cork South Central, Fianna Fail)
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Which report does the Deputy mean?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Joint Committee on Enterprise and Small Business report. Will he come to the committee to tease out some of the difficulties small businesses have before he comes to any conclusions with his company law review group on the review currently going on in his Department?

Micheál Martin (Cork South Central, Fianna Fail)
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Given the respect I have for the Oireachtas committee and the appreciation I have of its view, I will gladly discuss that issue with it, subject to commitments. However, I will ensure I do it before the recess.

The review of the compliance directive is a good example of Government listening rather than ploughing ahead. Collectively the Government has taken the decision to listen to what people have said on this. There is a fine balance to be struck in dealing with this. On any day here Deputies jump up and down if something breaks with regard to banking or some scandal emerges. People say we need accountability and compliance, which we do.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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This difficulty is not about big businesses and corporations.

Micheál Martin (Cork South Central, Fianna Fail)
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We are trying to strike a balance between accountability, good governance and good behaviour on the one hand and on the other, a flexible business-friendly environment that allows people get on and be productive and efficient. The country has a good reputation for the latter, which is important in terms of the attraction of foreign direct investment, particularly in key sectors of the economy where we have been successful in bringing in international mobile investment into the country. We do not want to undermine our capacity to do that into the future and our decision to review the legislation is part of that. The Minister of State in the Department will deal with the company law review and I will alert him to the Deputy's feelings on the matter.