Leo Varadkar (Dublin West, Fine Gael)
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Question 53: To ask the Minister for Enterprise, Trade and Employment when he will set a national target for the reduction of the administrative costs of regulation to business; if he will use the international standard costs model as part of this process; and if he will make a statement on the matter. [31478/07]

Micheál Martin (Cork South Central, Fianna Fail)
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In March, the European Council agreed that administrative burdens arising from EU legislation should be reduced by 25% by 2012. Taking into account the different starting points and traditions, the Council invited member states to set their own national targets of comparable ambition within their spheres of competence by 2008.

Prior to the Taoiseach's departure for the spring European Council meeting, the Government agreed that I should lead the cross-departmental and agency drive and put in place a mechanism to drive the agenda at national level. As part of this effort, I established a high level group on business regulation earlier this year under the chairmanship of my Department's Secretary General. The group comprises representatives of Departments, governmental agencies, the business sector and ICTU. It 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 April report and to capture the savings arising from that work on a case-by-case basis. The five priority areas identified by the BRF 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 submitting its report last April, the BRF did not recommend the introduction of the standard cost model as employed in the United Kingdom and the Netherlands, which pioneered this approach. Instead, the BRF recommended:

Given the resource implications associated with undertaking a full baseline measurement exercise, a prioritised and selective approach would be the most realistic way forward for Ireland. In line with this recommendation, the high level group is pursuing a prioritised and selective approach.

International evidence states that the World Bank's Doing Business 2008 report ranked Ireland eighth of 178 in terms of ease of starting and running a business. Of our EU partners, only the UK and Denmark are ahead of us. Recently, I took a number of initiatives to help to reduce the administrative burdens on business, including legislation introduced at the end of last year to raise the audit exemption thresholds applying to small companies in respect of turnover and balance sheet to €7.3 million and €3.6 million, respectively. The previous thresholds were €1.5 million and €1.9 million. This will remove the compulsory annual audit cost from the large number of companies qualifying for the enhanced exemption levels.

In company law, we approved the general scheme of the companies consolidation reform Bill as prepared by the company law review group. The Bill is being drafted and will consolidate the 13 Companies Acts into one. In addition to a number of significant proposed reforms, the Bill 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.

Brendan Howlin (Wexford, Labour)
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The Minister's time has expired.

Micheál Martin (Cork South Central, Fianna Fail)
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As regards responding to the European Council's invitation to member states to set national targets, an appropriate target will be set for Ireland — we are considered to be relatively lightly regulated — after full consultation with Departments and agencies. I intend to bring that part before the Government.

Brendan Howlin (Wexford, Labour)
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The Minister has gone one minute over his time. If there is an important paragraph, it should be at the beginning rather than the end of his reply.

Leo Varadkar (Dublin West, Fine Gael)
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No one can underestimate the importance of cutting red tape and reducing the regulation of business. A recent ESRI survey showed this to be the matter of most concern to businesses, more so than infrastructure and potentially——

Micheál Martin (Cork South Central, Fianna Fail)
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I did not catch that last part.

Leo Varadkar (Dublin West, Fine Gael)
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A recent ESRI survey of business people showed this to be their number one concern ahead of infrastructure and other issues, including labour costs. We estimate that business could be saved up to €1.25 billion in five years were the standard cost model adopted.

Like many Ministers, the Minister has only half answered the question I asked. I assume his answer in respect of using the standard cost model is no. I did not ask whether it was recommended by the BRF, I want to know whether the Minister will use it. Will he clarify that?

I asked the Minister when he would set a national target, but he did not answer. Is he not embarrassed by his failure to set a target? I will provide a few examples. Austria set a reduction target in April 2006, the Czech Republic set a three-year 20% target in July 2007, Italy——

Brendan Howlin (Wexford, Labour)
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The Deputy should seek information instead of giving it.

Leo Varadkar (Dublin West, Fine Gael)
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The figures for Italy, the Netherlands and the UK are 25%. When will the Minister set a target? From his statement, can I take it that he will not use the standard cost model to assess the baseline for current regulatory costs?

Micheál Martin (Cork South Central, Fianna Fail)
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I stated that during the previous Question Time some weeks ago. The Deputy did not hear it then, nor did he hear it now. I have made clear the way I am proceeding.

Leo Varadkar (Dublin West, Fine Gael)
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Is the answer no?

Micheál Martin (Cork South Central, Fianna Fail)
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Yes. Due to the imposition in terms of staffing and costs, the route we are taking is more realistic and effective. The EU invited member states to have targets by 2008 and we will have begun a realistic and informed process to that effect. Anyone can set a target, but achieving the target is the key issue.

Leo Varadkar (Dublin West, Fine Gael)
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When will the target be set so that we will be able to see whether it has been achieved?

Micheál Martin (Cork South Central, Fianna Fail)
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The audit exemption threshold, on which I took a decision last year, is estimated to save businesses between €10 million and €20 million. Research is ongoing in that respect. Through simplifying the process by which companies recover redundancy payments, we have effected a saving of approximately €1.2 million to the companies concerned. That is a global figure.

Where there are clear and realistic examples of removing red tape from the system, I will follow them. We are addressing five areas——

Leo Varadkar (Dublin West, Fine Gael)
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When will the Minister set the targets so that we can begin benchmarking?

Micheál Martin (Cork South Central, Fianna Fail)
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Within the next two months.

Leo Varadkar (Dublin West, Fine Gael)
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The Minister did not state as such in his initial answer.