Leo Varadkar (Dublin West, Fine Gael)
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Question 3: To ask the Taoiseach the methodology used to carry out regulatory impact assessments; if he is satisfied that this methodology properly assesses regulatory costs; if he has plans to reform the RIA process; and if he will make a statement on the matter. [31336/07]

Enda Kenny (Mayo, Fine Gael)
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Question 4: To ask the Taoiseach if he will report on the implementation of the recommendations of the OECD report on regulatory reform; and if he will make a statement on the matter. [34144/07]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 5: To ask the Taoiseach if he will report on the implementation of the OECD regulatory reform report; and if he will make a statement on the matter. [35286/07]

Enda Kenny (Mayo, Fine Gael)
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Question 6: To ask the Taoiseach if he will report on the implementation of the recommendation of the OECD report on regulatory reform; and if he will make a statement on the matter. [3549/08]

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 7: To ask the Taoiseach the progress to date with regard to implementation of the OECD report on regulatory reform; and if he will make a statement on the matter. [36123/07]

Bertie Ahern (Dublin Central, Fianna Fail)
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I propose to take Questions Nos. 3 to 7, inclusive, together.

Since the OECD report, Regulatory Reform in Ireland, was published, significant progress has been made in the area of regulatory reform. The Government White Paper, Regulating Better, published in January 2004 in response to the OECD's report, provides the basis for work on the better regulation agenda. Some of the key areas outlined in the OECD report and the White Paper relate to specific sectoral issues and the appropriate Ministers for those sectoral areas are responsible for reporting directly to the House on progressing those recommendations.

A dedicated unit within the public service modernisation division of my Department is tasked with promoting the better regulation agenda generally. In the context of the work of that better regulation unit, I will briefly outline for the House progress in the three areas of regulatory impact analysis, modernisation of the Statute Book and improving the regulatory environment for business.

Since 21 June 2005, regulatory impact analysis, RIA, must be applied to all proposals for primary legislation, significant statutory instruments, draft EU directives and significant EU regulations. RIA is a tool which is used to assess the likely effects of a proposed new regulation or regulatory change. It involves a detailed analysis to ascertain whether the regulation would have the desired impact. It helps to identify any possible side effects or hidden costs associated with regulation and to quantify the likely costs of compliance on the individual citizen or business. It also helps to clarify the costs of enforcement for the State.

To ensure that RIA is proportionate and does not become overly burdensome, the RIA model involves a two-phase approach. Regulations with a relatively low impact are subject to a screening RIA, a preliminary, less detailed analysis. A full RIA involving more extensive and detailed evaluation is applied to more significant regulations.

An independent review of the operation of RIA commenced on 31 October 2007 in line with the terms of Towards 2016. The review will assess the effectiveness of the current RIA model, having regard, in particular, to the principle of proportionality and current international best practice. RIA outputs from Departments and offices will be assessed on a quantitative and qualitative basis, having regard to the requirements of the RIA model itself. The review will also examine the effectiveness of current supports available to officials involved in preparing RIAs and recommend how best to support the RIA process into the future. At the end of the review, recommendations will be made for any necessary changes to the model itself or to its operation. It is expected that the report on the review will be finalised shortly.

The better regulation unit of my Department has, together with the Office of the Attorney General, steered and focused work in the area of modernisation of the Statute Book. The current phase of the statute law revision project, focusing on local, personal and private Acts, will see the completion of analysis of all pre-1922 primary legislation and the availability of a complete list of such legislation that remains in force. The statute law revision project is helping to clear away thousands of redundant and obsolete Acts so that we can see what needs to be repealed and re-enacted in modern, consolidated form. In this regard, good progress is already being made in areas such as land law and conveyancing, company law and financial services.

In addition, the Law Reform Commission is undertaking a programme of statute law restatement which will make legislation more accessible by providing, in the case of selected Acts, a single, up-to-date text, including all amendments. This process of restatement will also facilitate future consolidation and modernisation of legislation.

The programme for Government includes a commitment to instigate a review of the economic regulatory environment, which fits well with elements of the action programme for better regulation contained in the White Paper. An interdepartmental group, chaired by my Department, has been tasked with advancing work in this area.

An independent benchmarking review is being commissioned to address the need for stronger international data and benchmarks in order to assess the comparative efficiency and effectiveness of key Irish economic regulators. The review is expected to make recommendations on improving regulatory structures in Ireland, drawing on international models of regulation. The tender process for this review was initiated on 12 December in the Official Journal of the European Union and on the e-tenders website. In line with the relevant guidelines, the closing date for the receipt of tenders was 8 February and tenders are currently being assessed. It is anticipated that the review will commence at the end of March and last approximately six to nine months.

The interdepartmental group is also currently examining a range of measures to enhance accountability and the transparency of regulators' operations and, arising from its recommendations, the Oireachtas Joint Committee on Economic Regulatory Affairs was recently established. The committee's terms of reference focus on the operational efficiency of regulators in key economic sectors such as energy, communications, transport, health and safety and financial services. The committee has already been briefed by officials of my Department on the review of the economic regulatory environment and has also met with the Health and Safety Authority and the Commission for Communications Regulation in pursuance of its terms of reference.

Enda Kenny (Mayo, Fine Gael)
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One would nearly want a legal team to absorb all that, whoever laboured long and hard over it.

The report from the Taoiseach's Department on the introduction of regulatory impact analysis or RIA, as it is called, states that a so-called screening RIA should apply to all primary legislation which proposes changes to the regulatory framework. Did the Government consider, for example, an RIA in respect of the social welfare Bill which is to regulate pension fund administrators? I do not say whether I agree or disagree with it, but did the Government consider an RIA in that case because it introduces a change in the regulatory framework?

The same report stated that a full-scale regulatory impact assessment involving a qualified cost-benefit analysis would have to be produced and published in a case where there was significant Exchequer expenditure and that the Department of the Taoiseach would be the monitoring Department for that, and for all other Departments, to ensure that this was done to an adequate standard. Why was a full RIA not published in the case of the Carbon Fund Act 2007, which involved expenditure of €207 million on carbon credits, in view of the fact that it related to significant Exchequer expenditure? Why did the Department consider it sufficient to say in that case in costing other options to meet Kyoto commitments, which are a big issue with the Government, such as domestic emissions cuts, that these were impossible to calculate? Why, therefore, was a full RIA not requested and published in that case of significant Exchequer expenditure?

Bertie Ahern (Dublin Central, Fianna Fail)
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As I stated, regulatory impact analysis must be applied for all proposals for primary legislation. They cannot go through the system unless an RIA is carried out on them. This does not just include primary legislation; it also includes statutory instruments, European Union directives and significant European Union regulations. All of the proposals must automatically go through that system.

Enda Kenny (Mayo, Fine Gael)
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So the pension fund regulation would have gone through this process?

Bertie Ahern (Dublin Central, Fianna Fail)
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It must have gone through the process. Whether a proposal relates to primary legislation, statutory instruments, European Union regulations or European Union directives, they must all go through the process. It is done in two ways so that it does not become just a costly and burdensome process. This was one of the issues that Departments but especially business felt strongly about. The model involves a two-phase approach. Regulations that have a low impact, that will not significantly change anything, go through a screening process. I cannot tell Deputy Kenny which process the Bill went through. Bills go through the screening process for a preliminary less detailed analysis if it is considered that it is good enough. If there is a full RIA, then a Bill must go through what is a very extensive and very detailed analysis.

To date, in excess of 200 full RIAs have been carried out since the process began. Practically everything has gone through it. In the review process that is currently under way, they are looking at three years of work to see what else they should do, whether the process is too cumbersome and if there are issues on which they should pick up. It is not just a question of doing as we did in the past, namely, to legislate or regulate and build more bureaucracy on top of that which existed rather than finding a simplified way of doing something. The whole value of regulatory impact analysis is that it is thought out in advance in terms of whether it is necessary to have more regulation, statutory instruments or more confined legislation, or whether there is a better, cheaper or more constructive way of doing something. That assessment takes place before we go through it. It is not done by Departments only. There are outside groups in committees, which are made up of business people and others involved who have an interest in the regulation, where they can make their input. I would say the review will come up with suggestions because there was an agreement in Towards 2016 that it would be done for three years and then there would be an assessment. We are just at the end of the three-year programme. As I understand it, every single proposal must go through this initial period.

I should mention that one of the difficulties in year one was that we did not have enough trained staff across the Departments to do this work. It had never been done before as we would just legislate. A training programme has been going on for the past year or two and more than 240 officials across Departments have undergone these RIA training sessions which give staff the expertise. There is an argument in some areas that perhaps within the system we do not have enough highly qualified people and that is an issue that is being looked at in the review.

Enda Kenny (Mayo, Fine Gael)
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I asked the Taoiseach was there an RIA considered for the social welfare fund regulators and why was it not published. That is a change in the legislative framework. Second, was a full RIA published in the case of the Carbon Fund Act 2007, involving significant expenditure of €207 million? The Taoiseach also stated that these were to be published on websites. Of the 200 RIAs he mentioned, how many are up on websites for public scrutiny?

In 2001, the OECD issued a report which stated clearly that the Government should make far greater efforts to reduce red tape and administrative burdens on the regulatory framework involving business, which was being strangled. Four years later the Government set up the Business Regulation Forum chaired by Donal de Buitléir and arising from that the Minister for Enterprise, Trade and Employment, Deputy Martin, stated that a red tape reduction target would be set within two months. The Minister of State at the Department of Enterprise, Trade and Employment, Deputy Michael Ahern, admitted recently that this target had not been kept but that another review group was set up.

Given that the Minister for the Environment, Heritage and Local Government, Deputy Gormley, who seems to be around the country collecting patio heaters, is now sending county council workers in to assess farmers for various activities, can we not get clarity from Government on the real drive here to have a target for reduction of red tape and administrative burdens, which are strangling small businesses and the self-employed all over the country? There were some welcome changes in the Finance Bill, but the target announced by the Minister, Deputy Martin, was never decided upon and the Minister of State, Deputy Michael Ahern, stated that target, whatever it was, cannot be met and there is now another review group. We are in a very difficult situation where we are clearly losing out on competitiveness and Government can have an impact on this by reducing red tape and administrative burden.

Will Government state its target for reduction of red tape, by 2% per year or whatever, and give the dates by which that will be achieved, and let those who want to operate within the system and drive their businesses do so?

Eamon Gilmore (Dún Laoghaire, Labour)
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On the last occasion when we dealt with this issue of regulation in October, I asked the Taoiseach about the Government's plans for regulating the legal professions and in reply he told me that there would be a legal services ombudsman, as provided for in the Civil Law (Miscellaneous) Bill 2006 that was then before the House. Since then that provision for a legal services ombudsman was dropped from the Civil Law (Miscellaneous) Bill 2006 by the Minister for Justice, Equality and Law Reform and I understand that it is intended to be introduced as separate legislation. Given that since October we have seen a parade of solicitors before the Law Society and, indeed, the courts for various forms of alleged misdemeanour and mishandling of clients' money and business, and given the statement made by the Law Society to the effect that it would now welcome State regulation of the profession of solicitors, which is a significant change in its position on that matter, does the Government intend to introduce legislation to regulate the two legal professions? When will the Bill to provide for the legal services ombudsman be presented to the House?

Bertie Ahern (Dublin Central, Fianna Fail)
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On the first point, the preliminary results from the review of the operation of the RIA process seem to indicate that in the region of 70 assessments have been produced since its introduction. Some 70 full RIAs have been produced across Departments and offices, although I do not know if they have been produced on the websites. Also, they have looked at areas from the preliminary results of the review to bring about considerable improvements.

With regard to the red tape initiative, a number of areas come under my jurisdiction, including the Statute Book, the consolidation of Acts, the simplification of statutes and the chronological tables. These initiatives are well advanced, but it will probably take another year or two to get them entirely up to date. The advances made have significantly assisted business, but there are many other areas to be dealt with, for example, taxation on which the Tánaiste introduced a number of initiatives this year and last year to simplify matters.

Work remains to be done also to simplify the area of enterprise, trade and employment and company law. I am not sure where the next company law Bill, which is a very large Bill, stands. A huge range of issues must be simplified in that area for business. A significant amount of work has been done, but the remaining parts must be legislated for. Company law legislation will be essential.

In response to Deputy Gilmore's question, as I understand it, because of all that goes on, the Minister wanted to review the entire area. He believes it is appropriate to do this in a single legislative Act, rather than just in a section in the Bill as the Deputy suggested. It will take some months before that review is complete, therefore, I do not expect to see the Bill this side of the summer.

Eamon Gilmore (Dún Laoghaire, Labour)
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What about solicitors and the regulation of the professions?

Bertie Ahern (Dublin Central, Fianna Fail)
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The Bill to deal with the legal services ombudsman will be introduced this session, but the Minister has not come to final conclusions on the issue of the professions.

Michael Ring (Mayo, Fine Gael)
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Will that Bill come before the House?

Bertie Ahern (Dublin Central, Fianna Fail)
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It must do so.