Shane McEntee (Meath, Fine Gael)
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Question 5: To ask the Minister for Enterprise, Trade and Employment the reason he has not implemented procedures to ensure direct feedback from business on regulatory burdens; and if he will make a statement on the matter. [15554/07]

Micheál Martin (Cork South Central, Fianna Fail)
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Direct feedback from business was facilitated over the past 15 months through the Business Regulation Forum, which comprised representatives of the business community and business representative organisations. In 2006, the forum collected evidence from businesses about regulatory burdens in a number of ways. Over 40 submissions were received from businesses, organisations and individuals. Six case studies were undertaken on behalf of the forum to understand companies' day-to-day issues with regulation. Two pilot studies were carried out by PricewaterhouseCoopers on behalf of the forum to investigate the applicability for Ireland of the standard cost model, which is a means of identifying and measuring administrative burdens. More than 30 businesses were consulted in detail about their experiences as part of this process, with two regulations investigated.

I welcome the survey of business attitudes to regulation conducted by the ESRI in 2006 on behalf of the Department of the Taoiseach. The survey collated the views, attitudes and concerns of over 800 firms on the impact of regulations on them. The Business Regulation Forum took these sources of information into account in producing its report, which I launched yesterday. The Government has asked me to lead a Government-wide effort to drive this agenda forward. I have asked the Secretary General of my Department to lead a cross-departmental agency effort, working directly with business, to examine ways of reducing the regulatory burden. It is intended to bring the regulating Departments and agencies into direct contact with business representatives. The initial focus will be on those areas which are causing the greatest burden.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I thank the Minister for his reply. This is a serious problem for businesses, as the Minister is aware. I am sure he has received many representations on it over the years. When the Taoiseach launched a Government document, Better Regulation, in 2001, it was claimed that proportionality and necessity would be provided for and regulatory impact assessments would be carried out on all the various matters. Very little was done in that regard over the following years, however.

What evidence do we have that anything will happen as a result of the report that was published yesterday, which represents a damning indictment of the regulatory burden that has been placed on businesses by the Government? If the Minister reads the report's executive summary, he will see evidence of problems in this respect in areas like tax, health and safety, statistical information and the environment. He will find evidence of a duplication of the administrative burden on business. Will the Minister give the House details of the timescale and targets he is prepared to set for the implementation of this report?

Micheál Martin (Cork South Central, Fianna Fail)
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We need to keep this debate in perspective. I have been active on the regulation issue — I increased the audit exemption threshold soon after I took office.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister refused to do it at first, but he has done it now.

Micheál Martin (Cork South Central, Fianna Fail)
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The Minister for Finance introduced significant measures in the budget, on foot of the work that was done in co-operation with the Small Business Forum, to reduce the burden on businesses. He amended the VAT thresholds, for example, to help small and medium sized enterprises. The work that has been done to date illustrates the fact that regulation affects small businesses more than large businesses and has a disproportionate impact on small and medium sized enterprises.

The work of the Business Regulation Forum indicates that regulation constitutes a significant burden for businesses in Ireland. The five areas on which we will concentrate are taxation, health and safety, the environment, statistical returns and employment and company law. There is evidence from international organisations to suggest that Ireland is in a better competitive position than other countries. The World Bank's 2006 Doing Business report ranked Ireland tenth of 175 countries in terms of the ease with which businesses can be started and run here. The World Economic Forum's 2006-07 Global Competitiveness Report showed that Ireland compares favourably with other countries in terms of a number of regulatory indicators. The International Institute for Management Development's 2006 world competitiveness scoreboard showed that Ireland compares favourably in areas like ease of doing business.

Micheál Martin (Cork South Central, Fianna Fail)
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Deputy Hogan should pay attention to what I am saying.

Tom Hayes (Tipperary South, Fine Gael)
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He has other things to think about.

Micheál Martin (Cork South Central, Fianna Fail)
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I noticed that his mind was wandering. He should take note of these positive indicators ahead of the campaign that may take place over the next few weeks.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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There is a regulatory burden on us all.

Tom Hayes (Tipperary South, Fine Gael)
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The Minister was quite alert in the way he picked up on that.

Micheál Martin (Cork South Central, Fianna Fail)
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When I was a teacher I was able to tell when the attention of students was elsewhere, just as I noticed when Deputy Hogan was concentrating on the change in the Chair. The Deputy asked me to outline the Government's targets. We are prepared to nail our colours to the mast. Like our European counterparts, we want to reduce the regulatory burden by approximately 25%, across the board, over the next five years.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I do not know where we heard previously of a policy of reducing the regulatory burden by 25%.

Micheál Martin (Cork South Central, Fianna Fail)
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Perhaps the Deputy heard it in the House of Commons.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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No, the Minister heard it first as part of Fine Gael's policy. We have been proposing that for the last three years, but the Government has been ignoring our efforts.

Micheál Martin (Cork South Central, Fianna Fail)
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No.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Of course that is the case. After ten years in office, I would have expected the Government to have a done a great deal to reduce the regulatory burden, which is currently such an important issue. Like all other Government conversions to Fine Gael policy, this conversion is welcome. I am glad that the Minister said this is an important issue. He has accepted this report, just like he accepted many other reports. Will the Minister indicate which of the areas identified in the submissions from the other EU member states that have had some success in this area are priority areas? I accept that some priorities have been identified, but I would like to know more about some specific priorities, particularly in relation to the Dutch model, which is the best example of a regime coming to grips with the regulatory burden on small and medium sized enterprises.

Micheál Martin (Cork South Central, Fianna Fail)
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This is an ongoing issue. It would be incorrect to suggest that we have just become associated with this issue. The consumer legislation we passed in this House is a good example of simpler consolidated legislation that reduces the regulatory burden. It repealed a number of outdated historic Acts. We need to create a pillar of legislation that can be accessed by consumers, business and industry. The Minister of State, Deputy Michael Ahern, has initiated the mammoth task of updating and reviewing company law. That work, which is well advanced, will work wonders in simplifying the regulatory obligations to be fulfilled by those establishing new companies, etc. The great deal of significant legislative work that is under way will reduce and simplify the regulatory burden. We need to ensure that regulation, which is important to all our lives, is administered in a simple, efficient and effective manner.

The Deputy asked about the areas on which we will concentrate. He also mentioned the international dimension. We have spoken to the Dutch authorities. Some civil servants from the Netherlands have come to this country to explain how the standard cost model works there. We have some concerns about the applicability of that model to Ireland, as we do not want to create a new layer of bureaucracy. That is something we are teasing out.

We have set up an interdepartmental group with business people on it which is headed by the Secretary General of my Department. It will become a clearing house for regulation, as was the case for the financial services sector. That arrangement was very effective in having a structured dialogue between the sector and Government. Likewise, in this case we want a structured, ongoing and sustainable dialogue between business and Government on the regulation issue.