Enda Kenny (Mayo, Fine Gael)
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Question 7: 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. [30618/09]

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 8: To ask the Taoiseach the progress made with regard to the implementation of the recommendations of the OECD report on regulatory reform; and if he will make a statement on the matter. [32525/09]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 7 and 8 together.

The Government published the White Paper, Regulating Better, in 2004. It provides a framework for advancing the better regulation agenda in Ireland. Some of the recommendations and actions outlined in the OECD report and the White Paper relate specifically to individual sectors and relevant Ministers are responsible for reporting directly to the House in regard to them.

The better regulation unit in my Department is tasked with the promotion of the better regulation agenda across Government. In this context, it is currently co-ordinating the Government input to the review of Ireland's regulatory systems and processes being undertaken by the OECD. The review is being conducted as part of a set of similar reviews covering the original 15 EU member states which is being funded by the EU Commission and covers issues such as regulatory impact analysis, administrative burden reduction and approaches to enforcement.

I would like to also briefly refer to other work the unit is carrying out. It recently published a Government Statement on economic regulation providing a framework for the future development of economic regulation in Ireland. It covers issues such as governance and accountability; the appropriateness of structures and mandates; cost effectiveness and engagement with stakeholders. Particular actions include the establishment of a forum which will provide a direct interface on a yearly basis for senior Ministers and key economic regulators to discuss Government priorities and enhance the responsiveness of the regulatory environment to changing economic and social factors. In addition, relevant Ministers will now be statutorily required to review the roles and mandates of regulators every five years. Ministers will also approve planned expenditure by regulators, including any industry levies, following consultation with stakeholders. In the aviation sector, the Minister for Transport will bring forward legislation to merge the Commission for Aviation Regulation and the regulatory functions of the Irish Aviation Authority with the planned National Transport Authority.

Work is also continuing on the Statute Law Revision Project, which is steered by my Department in partnership with the Office of the Attorney General. The Statute Law Revision Bill 2009 recently completed Committee Stage in this House and deals with local and personal Acts up to and including the year 1850 and private Acts up to and including the year 1750. The Minister of State, Deputy Carey, expects to bring forward the Bill on Report and Final Stage this Thursday. These private Acts are those which are concerned with the affairs of a single individual or body, and local and personal Acts are concerned with matters affecting a very limited section of the community such as a single local authority or company. The current Bill provides for the express repeal of more than 1,350 such Acts. This is in addition to the almost 3,500 public and general Acts which were already repealed by the Statute Law Revision Acts of 2005 and 2007.

In addition to the work being undertaken on statute law revision, individual Ministers are also undertaking significant consolidation projects including in the key areas of company law and customs legislation. Revised RIA guidelines have now been published and take account, in particular, of the need for improved quantitative analysis and for the increased use of RIA to evaluate draft EU legislative proposals.

Enda Kenny (Mayo, Fine Gael)
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Have we done any work on a baseline study of the cost of red tape in Irish industry? Every day, Members are being contacted by businesses in various sectors and inevitably red tape arises as an issue, with more form filling and administrative obstacles of one sort or another. Since we last discussed this, I raised the question of a baseline study that would show the cost of red tape for Irish industry. Is there any such study or is work under way on one? The Taoiseach could then point out to business anywhere in the country his assessment of the cost of red tape and how it is proposed to deal with it.

Brian Cowen (Laois-Offaly, Fianna Fail)
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There is a process in place regarding the reduction of administrative burdens and a group on business regulation is chaired by the Secretary General of the Department of Enterprise, Trade and Employment. It has set out a programme of work that would seek to reduce the regulatory and administrative burden significantly.

The question of regulation constantly arises. On the one hand, one needs efficient and effective public administration in the interests of public accountability and to avoid arbitrary decision making. On the other hand, as one sought to address business issues in the financial services area and Ireland sought a competitive advantage creating employment in that area, light touch regulation brought its own difficulties when wider issues came into play when the whole financial market almost came to collapse.

One sees in EU regulatory discussions and wider discussions with other financial markets and regulatory authorities, the need to ensure a greater degree of oversight and accountability in that area, given that what was seen as financial innovation increased risk factors and brought about a situation where the whole remuneration structure and the means by which financial services were applied meant that we saw a lot of activity that increased the risk of what happened happening. By the time regulatory authorities get to the point where they know what is going on, the harm is done and we then must deal with the impact and retrieve the situation, often causing great economic disturbance and turmoil.

The question of finding the right level of effective regulation is an important principle of public accountability but by the same token we must avoid and deal with instances where bureaucratic procedures are built up over time that fail to take account of the need for more expeditious responses to people's application or requirement for consent or approval to get on with doing their business.

Enda Kenny (Mayo, Fine Gael)
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I agree with the Taoiseach's comment about getting the right balance for effective regulation. Regulation that was too loose caused mayhem that we are now dealing with.

The recent OECD economic survey of Ireland made two points. It indicated that we should move to a single agency to deal with employment and unemployment. This concerns the work of FÁS and the Department of Social and Family Affairs. Given the extent of the regulation that exists, is the Taoiseach of the view that this should be done? Clearly, there are cost implications where money may be saved, either by outsourcing training courses or giving them to the VECs, as distinct from the cost of FÁS at the moment.

In its economic report the OECD also recommends the removal of unnecessarily restrictive regulations, strengthening competition policy and changes to planning laws, with particular reference to the legal profession, pharmacies, doctors and pubs, in addition to the network industries. I am sure the Taoiseach has taken note of the report. Perhaps we might get a response at the next Question Time to some of the points it has raised as regards reducing the administrative regulatory burden on business.

Eamon Gilmore (Dún Laoghaire, Labour)
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We seem to have the worst of both worlds with regard to regulation. While the Government has been looking at all the reports on better regulation, with more and more working groups examining this question, people in business are being tortured with filling forms and trying to respond to one agency or regulatory body after another. The quantity of regulation does not seem to equate with the quality, an example being the regulation of the banks. Where stands regulation of the banks today in circumstances where one financial institution has decided it is going to appoint the same person as chairman and chief executive, and where a new managing director is being appointed at a salary level in access of what the Government says it should be? Is there regulation of the banks, or now that the print is drying on the NAMA legislation, are they again free to go back to doing as they like?

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Minister for Finance has been outlining the Government position on the second matter Deputy Gilmore has raised in an earlier programme.

With regard to the questions raised by Deputy Kenny on the question of outsourcing and using private companies for the purposes of training programmes, to work in partnership is a good thing, although there have been some recent controversies in this regard where the certification processes were not what they should have been. The question of proper oversight when other agents act on behalf of statutory authorities for the provision of training is again an important aspect of regulation. Work cannot simply be farmed out without the statutory authority being in a position to properly oversee it and ensure that standards are being maintained and regulated.

With regard to the Competition Authority, there have been a number of interim reports in respect of certain professions and some of the recommendations have been acted upon. I understand the final is due in the middle of next year. Any specific regulatory matters raised which are the responsibility of particular Ministers, should elicit replies from them through the parliamentary question procedure.