Leo Varadkar (Dublin West, Fine Gael)
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Question 154: To ask the Minister for Enterprise, Trade and Employment the third recommendation of the Business Regulatory Forum; if he will implement this recommendation; and if he will make a statement on the matter. [33120/07]

Micheál Martin (Cork South Central, Fianna Fail)
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In its report of April this year, the Business Regulation Forum recommended that "an administrative burden reduction programme should be initiated in Ireland without delay." In response to this, earlier this year I set up the High Level Group on Business Regulation under the chairmanship of my Department's Secretary General. The Group comprises representatives of Government Departments and agencies, the business sector and the 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 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.

I presume the Deputy's question refers to the call by the BRF that "a target for administration burden reduction should be set" and that "simplification and measurement should proceed iteratively, with further shortlists of regulations, identified by business, until the national target has been met".

In this regard, I would advise the Deputy that workshops have been held with business to identify issues of real concern to business. The High Level Group has been examining ways to simplify the areas identified and measuring the benefits of reductions made. Before setting a definitive target, I will be consulting with other Departments and Agencies on the extent of administrative burdens and on measures that have been undertaken or are planned to reduce that burden. It is important that any target set is appropriate to the Irish context.

Leo Varadkar (Dublin West, Fine Gael)
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Question 155: To ask the Minister for Enterprise, Trade and Employment if his Department has carried out an investigation into the usage of standards costs model to quantify the cost of the administrative burden on businesses of complying with Government regulations; the outcome of such an investigation; and if he will make a statement on the matter. [33139/07]

Micheál Martin (Cork South Central, Fianna Fail)
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During 2006, PriceWaterhouse Coopers were contracted to carry out a pilot study using the Standard Cost Model (SCM). This pilot project sought to carry out a full measurement of the administrative burdens caused by two specified 'Information Obligations' ie the Annual Return to the Companies Registration Office (CRO); and the requirement on retailers to provide unit-priced labelling on products.

The pilot study showed that the administrative cost associated with the CRO's Annual Return Form was found to be in the region of €35 million, across 144,907 companies. The workshop and interviews conducted in order to establish this cost also yielded a number of suggestions for simplification. The CRO had either already considered or is working on these suggestions.

The study showed that the administrative cost to the 36,364 retail units to which the product pricing legislation applies was found to be in the region of €387 million. In consultation with the retailers themselves, however, the study found that only a small proportion of this cost was regarded as a burden as most companies would feel obliged to display pricing information even in the absence of the regulation.

In conclusion, the Business Regulation Forum stated that given the resource implications associated with undertaking a full baseline measurement (i.e. using the Standard Cost Model as had been done in other countries), "a prioritised and selective approach is the most realistic way forward for Ireland". The BRF further stated that in this prioritised approach, "a SCM-type methodology can be used primarily to measure reductions achieved rather than for identifying the most burdensome areas".

In response to the BRF Report, earlier this year I set up the High Level Group on Business Regulation under the chairmanship of my Department's Secretary General. The Group comprises representatives of Government Departments and agencies, the business sector and the ICTU. It has decided to focus initially on ways to reduce, simplify and eliminate unnecessary administrative burdens and associated costs in five priority areas identified in the Business Regulation Forum's Report. In conducting its work the High Level Group has adopted the approach proposed by the BRF i.e. identifying priority areas in consultation with business, seeking to reduce or eliminate the administrative burdens involved and measuring the savings on a case-by-case basis.