Catherine Byrne (Dublin South Central, Fine Gael)
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Question 61: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of regulatory impact assessments carried out on new legislation by her since she came to office; her views on whether reform of the regulatory impact assessment process is required; and if she will make a statement on the matter. [19892/09]

Conor Lenihan (Dublin South West, Fianna Fail)
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Since 2005, all Departments have been required to conduct regulatory impact analyses, RIAs, in respect of all primary legislation, significant secondary legislation, EU directives and significant EU regulations. In addition, policy review groups charged with examining legislative proposals are also required to undertake an RIA. Since May 2008, my Department has carried out four screening RIAs in line with the established guidelines prepared by the Department of the Taoiseach. In addition, my Department is currently conducting several further assessments.

Under the Towards 2016 social partnership agreement, there was a commitment to review the RIA process in 2007. This review was carried out by the Department of the Taoiseach and published in July 2008. Several recommendations were made in regard to the changes required to the RIA process and the implementation of these recommendations is ongoing. They include the need for increased publication of RIAs; an improvement in the quality of some RIAs, with an increased emphasis on the measurement of costs and benefits; and specific guidance on the measurement of potential administrative and compliance costs, especially on business.

Revised RIA guidelines which take account of these and other issues raised in the context of the review are being finalised by the Department of the Taoiseach and will be published shortly. I understand the revised guidelines will advise all Departments to measure administrative burdens as part of their RIAs in future, in order to ensure the RIA process complements the targeted administrative burden reduction programme, dealing with existing legislation, which my Department is leading. This process should ensure the minimum administrative burden is imposed on business by new legislation. In addition, the RIA training course, operated in conjunction with the Civil Service training and development centre, has been revised to take account of the review findings and now contains a specific module on RIA and the so-called business perspective.

Addition information not given on the floor of the House.

Regulatory impact analysis is an important tool which helps to support the development of proportionate, effective and targeted legislation. It is essential that each Department adheres to the requirements of the RIA process and ensures RIAs are published in a timely and accessible fashion. In this regard, my officials will continue to work with the RIA network and the better regulation unit in the Department of the Taoiseach in order to continue to refine the approach we take when developing new legislation. This will ensure that legislative proposals continue to be proportionate, striking the right balance between the often competing rights of workers, consumers and individual enterprises on the one hand and, on the other, freedom for business to take quick decisions to adjust to global market competition.

Leo Varadkar (Dublin West, Fine Gael)
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My concern regarding the regulatory impact assessments that have been done to date is that they tend not to include any figures on savings achieved. One would assume such assessments would include a calculation as to costs rather than the type of box analysis that has taken place. No regulatory impact assessment was undertaken in respect of the Employment Law Compliance Bill 2008. It was screened for it but a decision was made by the Department not to do a full RIA. The idea that legislation such as this would not have a regulatory cost for business is absurd. It provides additional powers to the authorities and creates 23 new offences for employers. How can this not have a regulatory cost for business? I am not convinced the Department is serious about the agenda of regulatory reform.

Conor Lenihan (Dublin South West, Fianna Fail)
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The Deputy's comments in regard to cost are well timed. It is important to remember that the high level group that was appointed in July 2008 has so far identified €20 million in savings from the conduct of these regulatory impact analyses. That is a significant beginning to the process of evaluating costs. However, I agree with the Deputy that we must put numbers behind the savings. It is not enough to talk entirely about the process of regulatory impact analysis. This group, which is expected to report in the summer, will offer those numbers in its annual report to the Tánaiste on the savings being made through the RIA process.

In addition, we are also rolling out the standard cost model across all Departments. This will allow Opposition Deputies and the public to conduct a proper comparative analysis as to how we are performing in comparison with other European Union countries.

Brendan Howlin (Wexford, Labour)
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I have called Deputy Penrose.

Conor Lenihan (Dublin South West, Fianna Fail)
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The European Union has committed to achieving a 25% reduction in the regulatory and administrative burden by 2013. As a member state, the Government is committed to playing its part in achieving this objective. It is important that such comparisons can be made.

Brendan Howlin (Wexford, Labour)
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I have asked the Minister of State to give way so that other Members can contribute. I do not wish to cut him off, however, I remind those present that there is an allocation of two minutes for the initial reply and one minute for supplementary replies. No reply thus far as been remotely close to the two-minute limit.

Mary Coughlan (Donegal South West, Fianna Fail)
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We are too exuberant.

Conor Lenihan (Dublin South West, Fianna Fail)
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I apologise.

Willie Penrose (Longford-Westmeath, Labour)
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I thank the Leas-Cheann Comhairle for his forbearance. We on this side of the House wish to obtain as much information as possible. However, the Chair's interpretation is the correct one.

The Joint Committee on Enterprise, Trade and Employment has completed a study on the situation of small businesses in towns in the Dublin commuter belt. That report, including 12 recommendations, will be submitted to the Tánaiste next week. We hope those recommendations will be implemented. One of the greatest obstacles and sources of frustration for small businesses is the perceived level of regulation and bureaucracy. Many owners told us their businesses were being strangled by it. Is there any way that a single, simple, unified form can be introduced that would facilitate persons in meeting all regulatory requirements, including in regard to tax, submissions to the Chief State Solicitor's office and so on. The latter sends out forms every month that must be filled. Small businesses employing only one or two staff are obliged to employ a bookkeeper for half a day per week to deal with all the regulation requirements. I agree with the Tánaiste that it is small and medium-sized enterprises that will drive a recovery in the economy in the next three to five years. However, such enterprises will not thrive if they are strangled at birth through the imposition of excessive regulation.

Conor Lenihan (Dublin South West, Fianna Fail)
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In overarching terms, an issue on which the Government is working closely, one which has arisen time and again at Cabinet level and in other discussions, is the possibility of having a unique business indicator or number to enable businesses to transact business with the State as an individual. I hope such a development would assist small businesses.

I concur with Deputy Penrose that red tape is the curse of small business. This issue arose recently at a Competitiveness Council meeting I attended in Prague in place of the Tánaiste. Governments throughout the world are struggling with the question of how to eliminate the red tape and bureaucracy we impose on small to medium-sized enterprises which account for 65% of all businesses in the European Union. This is a unique and distinct problem for the Continent of Europe, including Ireland. The burden of bureaucracy is greater here because our businesses tend to be smaller than elsewhere in Europe. Relatively large companies qualify as small businesses in Europe when considered in the context of the structure and status of Irish businesses.

It is important that regulatory impact analyses are conducted well and published. The Department publishes these analyses on its website and it is open to members of the public to judge the Government on its actions and its decisions not to proceed to legislation. The quantity of legislation we produce in the House must be reduced.

Deirdre Clune (Cork South Central, Fine Gael)
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Does that mean the Employment Law Compliance Bill has been dropped?

Mary Coughlan (Donegal South West, Fianna Fail)
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That is a matter for the Opposition.

Leo Varadkar (Dublin West, Fine Gael)
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The Tánaiste does not appear to be enthusiastic about it.

Mary Coughlan (Donegal South West, Fianna Fail)
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I am enthusiastic.