Dáil debates

Wednesday, 2 November 2005

Other Questions.

Business Regulation.

2:35 pm

Photo of Liam TwomeyLiam Twomey (Wexford, Fine Gael)
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Question 106: To ask the Minister for Enterprise, Trade and Employment the number of meetings of the better regulation group which have taken place; the action which has been taken arising from those meetings; and if he will make a statement on the matter. [31631/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I have set up the business regulation forum, BRF, with effect from today. I was very pleased to secure the services of Dr. Donal De Buitléir, General Manager, Office of the Group Chief Executive, AIB Group, as chairman. The members appointed encompass an excellent spread of business and regulatory expertise and this will be complemented by the addition of departmental representatives.

Establishment of the BRF is a key element in implementing the Government's commitment to better regulation and to address administrative burdens which can genuinely be identified as disproportionate. My intention is that the BRF will advise me, and that I, in turn, will advise the Government, on regulatory issues as they impact on business and competitiveness, in particular issues and problems arising from outdated, inefficient or disproportionate regulation.

The forum will work in parallel with the existing better regulation group of Government officials and regulators. It will take a strategic overview of the application of better regulation principles to new regulation and examine specific existing regulations on a problem-solving basis. As the business regulation forum should be a dynamic body which will identify, focus on and prioritise regulatory issues of concern, I do not want to be prescriptive about its work. The adoption of a detailed work programme will be a matter for the forum. My Department and the State enterprise agencies will assist the forum to carry out its task and I have requested other Departments and the independent regulatory bodies to facilitate the effective analysis and review of particular regulatory issues.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I am sure the Minister will not mind me stating that we have heard all this before. In January 2004 it was stated in a document issued by the Taoiseach that the Government had established a group on better regulation to promote better regulation across the public service and oversee implementation of the commitments and action plan arising from the White Paper. How are we now to believe the Minister on any announcement he makes on a new forum, group or committee established to deal with the same matter?

With regard to the bona fides of the Government on the issue of better regulation, how many regulatory impact analyses have been carried out across Departments since January 2004 in line with what was committed to at that time? Will the Minister comment on the company law reform group's report, which was to deal with a number of issues related to company law and which affect the regulatory burden on small businesses in particular?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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In terms of the world of business, there was a requirement and a desire from business that there would be formalised dialogue on working relationships with Government on regulations in general. This is a good thing. During the summer, the Taoiseach announced that such a group would be established. It is important for business in Ireland, as there is a strong external perception that the Government and its process are agile and responsive to enterprise and business. We gain competitively on that point compared with other countries with which we compete. This is a strong view of Ireland. I see the establishment of the aforementioned forum in such a context. It clearly demonstrates that the Government listens to what people say on the impact of regulation on business and enterprise.

The company law review group was asked to carry out a specific task with regard to legislation pertaining to directors' compliance. It has completed this work, which is currently at Government. The Government will make a decision on the matter shortly.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I do not agree with the Minister's comment that the Government has an agile perspective of the matters that come before it. The approach is reactive rather than agile. The Government has been warned about these issues as legislation proceeded through the Houses. In particular, there were warnings that the directors' compliance statement in the Companies (Auditing and Accounting) Bill 2003 would create enormous problems for inward investment in the country, with directors based in the US, for example, needing to sign off directors' statements for businesses and foreign direct investment here.

The Government and the Taoiseach in particular was warned about these issues and potential mistakes. The Minister is now attempting to disguise this with a forum report. Will the Minister comment on the small business forum that he felt obliged to set up recently? There is also a group to implement the enterprise strategy group's report. Another group is being announced today to deal with better regulation, some issues of which we are already aware and which we do not need a group to recognise. Does the Minister agree that what is needed is the implementation of the enterprise strategy group's report in a concerted proactive way? The views of people could be taken at that stage rather than now setting up another committee and waiting another year and a half to implement measures required to assist small business in the regulatory environment.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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This is an example of typical cheap Opposition tactics condemning any group established. The bottom line on the enterprise strategy group is that the fundamentals have been implemented in terms of economic migration policy.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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How many recommendations have been implemented?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Employment Permits Bill 2005 is awaiting this House to pass it on to Committee Stage. The transport initiative unveiled yesterday is central to recommendations arising from the enterprise strategy group. Another example is work on and investment in research and development.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Why is another group needed?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I am dealing with the issue. The One Step Up initiative has been allocated an extra €40 million this year. It was used immediately to upskill the workforce. Whatever criteria are used, there is solid progress on the implementation of the recommendations of the enterprise strategy group. The reorganisation of Enterprise Ireland, taking into account its new strategic vision is another example. The restructuring approach is dealing with sales and marketing along with technology. This is a key driver of the recommendations of the enterprise strategy group.

The last time a small business task force existed was when Deputy Séamus Brennan was Minister for Trade and Employment, more than ten years ago. Most people would accept the outcome of that work was particularly significant for small business in terms of improving the environment for these businesses within the general economy. We must get away from the simplistic notion that we should not think strategically about the country's future.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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This is a talking shop and the Minister knows it.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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One of the great driving forces behind Ireland's transformation economically over the past decade or so has been the strategic approach taken on macro issues. These are significant fundamental issues in attracting investment and getting the overall business climate correct. This is why the country has been so successful, more successful than any other country, in attracting mobile investment. We should move away from silly politicking.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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No new group is needed to cover up the mistakes made.