Written answers
Tuesday, 2 November 2010
Department of Enterprise, Trade and Innovation
Business Regulation
9:00 pm
Richard Bruton (Dublin North Central, Fine Gael)
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Question 554: To ask the Minister for Enterprise, Trade and Innovation in relation to the target set by Government in March 2008 to reduce administrative burdens arising from domestic legislation by 25% by 2012, delivering estimated savings to the economy of €500 million per annum, if there has been any measurement of reductions made to date; if not, when such a measurement will take place; if any report on progress to date has been seen by him; if any such report will be seen by him; if so, when; if any such report will be made public; and if so, when. [40360/10]
Richard Bruton (Dublin North Central, Fine Gael)
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Question 556: To ask the Minister for Enterprise, Trade and Innovation if he will list the further burden reduction achieved and in the process of being measured and when such measurements will be made public. [40362/10]
Richard Bruton (Dublin North Central, Fine Gael)
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Question 559: To ask the Minister for Enterprise, Trade and Innovation under the cross-Government process co-ordinated by his Department, if his Department has yet listed the information obligations that its regulations impose on business; if so, the number of information obligations listed; if his Department has yet measured the actual cost to business of the most burdensome requirements; if so, the total cost; if any report has been published on this matter; if any report will be made public; and when any report will be made public. [40365/10]
Batt O'Keeffe (Cork North West, Fianna Fail)
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I propose to take Questions Nos. 554, 556 and 559 together.
International benchmarking statistics reveal that Ireland imposes a relatively low burden of regulation on business. The Forfás Annual Competitiveness Report 2010 states that Ireland's regulatory environment is one of the least restrictive in the OECD in relation to product market regulation, the time taken to comply with tax payments is one of the lowest in the OECD across all categories and Ireland's employment framework is less rigid than the OECD average.
The work to reduce red tape in Ireland is being progressed on two fronts. The High Level Group on Business Regulation works to fast-track simplifications to specific red tape issues identified by business; and an Inter-Departmental Group of officials from all Departments, having regulation affecting business, coordinates the measurement and reduction of administrative burdens in a systematic manner, based on the internationally recognized Standard Cost Model.
The High Level Group has processed thirty specific red tape issues brought to its attention by business and continues to drive progress on a further thirty-eight items. The Group has measured over €20m of annual business savings and continues to work with business interests to identify opportunities for simplification. In addition, my Department is in the process of measuring other burden reductions achieved. These burden reductions include simplification procedures in relation to waste collection permits, increased availability of online forms in the CRO and pre-filled on line forms and the facilitation of companies to upload their accounts in PDF format. A list of priority simplifications achieved is currently being compiled for measurement. The results of this measurement exercise are expected to be published in the second half of next year.
The measurement of administrative burdens using the Standard Cost Model is an exercise that was called for by business, as a baseline for the 25% administrative burden reduction programme, and is being carried out across all Departments with any substantive regulation that affects business. My Department and the Central Statistics Office have already measured burdens arising from regulations under their responsibility, and all other Departments will shortly measure the current costs on business arising from their regulation. Measurement is expected to be completed in 2011 and, following this, simplification plans will be developed in consultation with stakeholders, for implementation.
The results of the measurement exercise conducted by my Department during 2009 involving thirty-one priority Information Obligations is available on my Department's website at http://www.deti.ie/commerce/businessregulation/index.htm These results have been combined with measurements conducted on behalf of the High Level Group and by the European Commission to present a comprehensive picture of administrative burdens in these areas. Following the inclusion of these additional measurements, as well as some consolidation of related Information Obligations (for example, there are three closely related requirements associated with Annual General Meetings), there are now thirty-three priority Information Obligations included under Company Law, Employment Law and Health & Safety Law.
The total Administrative Burden for the three areas, following this consolidation of results, is €831 million. The consolidated results are also available on my Department's website. These results are in line with expectations, as compared with the results obtained by the UK in their measurement. Business workshops have already been held to identify ideas for simplification in the areas of Company Law and Employment Law. A Health & Safety Law workshop is scheduled for 9 November 2010.
Richard Bruton (Dublin North Central, Fine Gael)
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Question 555: To ask the Minister for Enterprise, Trade and Innovation if he will list the 30 specific red tape issues which the high level group on business regulation has processed; if he will list the 38 issues on which it is continuing to drive progress; if he will list any suggestions by business which it has decided not to progress. [40361/10]
Batt O'Keeffe (Cork North West, Fianna Fail)
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Details of the thirty specific red tape issues which the High Level Group on Business Regulation has processed, the thirty-eight issues on which it is continuing to drive progress and the eight items that are not being progressed are as follows:
High Level Group – Processed Items
| No. | Red Tape Issue |
| 1 | CRO/Revenue cooperation to find ways of reducing the duplication of data submission relating to annual returns |
| 2 | Consideration of working time rules regarding the averaging of the weekly work maximum over twelve months |
| 3 | The provision of Health and Safety Sectoral Codes and Step-by-Step Guides |
| 4 | Establishment of a CSO Departmental Point of Contact |
| 5 | Reduce the administrative burdens associated with the CSO Quarterly Earnings Surveys |
| 6 | Reduce the administrative burdens associated with the CSO Vehicle Destinations Form |
| 7 | Reduce the administrative burdens associated with the CSO Annual Services Inquiry |
| 8 | Simplify the ProdCOM Form |
| 9 | Ensure technical guidance on Revenue's website is up to date |
| 10 | Frequency of filing VAT returns |
| 11 | Recognition of existing compliance records for VAT registration applications |
| 12 | Simplification of the system for Section 4A Relief. |
| 13 | Improvement of the process for handling request for tax registration and VAT numbers |
| 14 | Consideration of the reinstatement of Revenue's visits to start up businesses |
| 15 | Consider rewarding use of Revenue's On-Line System and providing incentives for using the on-line tax system |
| 16 | Revenue should not provide information orally in respect of tariffs |
| 17 | Ensure that all public sector organisations accept on-line tax clearance certificates |
| 18 | Consider risk based enforcement in the waste sector |
| 19 | Coordination between regulators across the waste sector |
| 20 | Setting of an overall target by the Environmental Protection Agency for reducing the regulatory burden on business in Ireland |
| 21 | Consider the extension of the duration of Heavy Goods Vehicles permits in Dublin city |
| 22 | Consider improving the quality and publication of Regulatory Impact Assessments |
| 23 | Consider a centralised permit system for the movement of wide and long loads |
| 24 | Simplify the form-filling relating to short-time/ Set clear guidelines regarding Directors' rights as employees in cases of liquidation |
| 25 | Consider whether short-time working rules should allow people to work for four days |
| 26 | Feasibility of a single window for trade related regulatory interactions |
| 27 | Widening the scope of enforcement beyond regulated facilities and collection services in the waste sector |
| 28 | Reduce EU statistical requirements |
| 29 | Consider whether redundancy rebates can be offset against tax liability |
| 30 | Reduce the frequency of the VIES returns |
Table of Issues currently being progressed by the High Level Group on Business Regulation
| No. | Red Tape Issue |
| 1 | Development of XBRL for use by the Companies Registration Office |
| 2 | Development of an electronic signature to complete Companies Registration Office's electronic filing offer |
| 3 | Reduce the amount of documentation that is required to be sent with subsequent work permit applications |
| 4 | Collaboration of Department of Enterprise, Trade and Innovation and Department of Justice on the issue of employment permit applications and visas |
| 5 | Consider simplifying the OWT1 Form |
| 6 | Consider the administrative burdens in the Employment Law Compliance Bill |
| 7 | Review the cost/benefit of the Safepass Scheme |
| 8 | Examine risk based enforcement and possible development of a common business identifier |
| 9 | Collaboration between the CSO and Revenue to reduce duplication |
| 10 | Consider revenue preference in company liquidations |
| 11 | Consider issues relating to public procurement such as standardising tender documents across Departments and Local Authorities; acceptance of tenders in electronic format; capping indemnity; sharing intellectual property rights between public bodies and successful tenders; simplification of procedures; reduce bureaucratisation of public service tendering and the requirement for notarised documents |
| 12 | Ensure procurement procedures applied by County Enterprise Boards are proportionate to the size of tenders |
| 13 | Consider the processing difficulties surrounding redundancy rebates |
| 14 | Consider the consolidation of some of the seven annual returns to CSO |
| 15 | Consider aligning CSO questionnaires more closely with company accounts |
| 16 | Reduce (EU) Intrastat frequency of returns |
| 17 | Structures should be put in place to obtain data already held by Revenue and the CRO for input into the CSO Annual Services Enquiry |
| 18 | The process regarding Relevant Contracts Tax should be simplified and a Regulatory Impact Assessment carried out |
| 19 | Review Revenue Forms 11, 12 and 46G |
| 20 | Development of "technical adjustments whereby tax can be paid late without penalty or interest in the case where a transaction has been handled incorrectly in error |
| 21 | Consider the abolition of Professional Services withholding tax |
| 22 | Reduce the administrative burdens associated with sales/retail licences |
| 23 | Waste collection permit applications |
| 24 | Consider how to reduce the bureaucracy associated with waste permits following the introduction of the 2007 Regulations |
| 25 | Consider waste licensing costs |
| 26 | Regulatory Impact Assessment on WEEE Legislation |
| 27 | Submission for Annual Vehicle Road Tax for more than ten vehicles |
| 28 | Transfer, to the EPA, of licensing facilities (such as waste facility permits, waste collection permits administration and surveillance) |
| 29 | Consider the transparency of the Cost structure for enforcement by the EPA |
| 30 | Consider EPA licences |
| 31 | Collection of data for enforcement purposes – this should be necessary and only collected once |
| 32 | Establishment of Business Users Forum in each Local Authority |
| 33 | Consider the administrative burdens associated with roadworthiness testing |
| 34 | Review the approach to abnormal loads permits |
| 35 | Consider the variance of fees charged for abnormal loads permits |
| 36 | Transferability of permits between vehicles |
| 37 | Consider the five day application for abnormal loads permits |
| 38 | Consider the possibilities for combining PRSI and tax data for employees, simplifying PRSI classes; provision of guidance to employers; and putting tax rates on the tax card |
List of Items not being progressed
| No. | Red Tape Issue | Reason for non-progression |
| 1 | Consideration of working time rules regarding the averaging of the weekly work maximum over twelve months | Conciliation between the European Parliament and Council of Ministers on an amending Organisation of Working Time Directive concluded unsuccessfully in April 2009, without agreement on revised working time rules. The proposed amending Directive included provisions in relation to a twelve-month averaging period. The European Commission, who first tabled proposals for an amending Directive, has undertaken a first stage consultation process with EU social partners on a possible overall review of the original Directive. |
| 2 | Reduce the administrative burdens associated with the CSO Vehicle Destinations Form | The EU largely determines the data required. Given the increasing demands for spatial-transport data in general and freight data in particular, it is difficult to see any way of cutting back on the Road Freight Survey. |
| 3 | Reduce the administrative burdens associated with the CSO Annual Services Inquiry | Currently, the Annual Services Inquiry data collection is governed by a number of EU regulations. The European Council has recently passed a new overarching piece of legislation concerning structural business statistics. This new legislation will dramatically increase the data demands that Ireland is required to provide to the European Commission and the European Central Bank |
| 4 | Simplify the ProdCOM Form | The ProdCOM requirements are defined by EU Council Regulation (EEC) No 3924/91 of 19 December 1991. |
| 5 | Improvement of the process for handling request for tax registration and VAT numbers | The e-registration project has been deferred due to budgetary constraints. |
| 6 | Consider the extension of the duration of Heavy Goods Vehicles permits in Dublin city | The HGV Strategy has been very successful at reducing the number of HGVs in the city while still allowing city centre businesses to operate. At this point Dublin City Council would be reluctant to change the way the system operates as changes to the current system would undermine the policy objectives underpinning the HGV Cordon Permits system. |
| 7 | Consider whether short-time working rules should allow people to work for four days | The jobseekers' schemes provide income support for people who are seeking their first job or have lost work and are seeking alternative employment. A fundamental qualifying condition for both the Jobseeker's Benefit (JB) and Jobseeker's Allowance (JA) is that a person must be available for full-time work, criteria that a person working 4 days will not satisfy. A week of unemployment is a period of at least 3 days of unemployment in a designated period of 6 consecutive days. This `JA week' runs from Wednesday to Tuesday, excluding Sundays.Short-time employment means employment in which, for the time being, a number of days is systematically worked in a working week which is less than the number of days which is normal in a working week in the employment concerned. Short- time work must be systematic, i.e., there must be a clear repetitive pattern of employment each week. The person must also work at least one day in each week that s/he would normally be working.The application of the jobseekers payment scheme conditions to workers who are not employed on a full-time basis is being kept under review. |
| 8 | Reduce the frequency of the VIES returns | The VIES return has a critical part to play in the fight against VAT fraud. The EU Council adopted a Directive, effective from 1 January 2010, which increases the frequency of some VIES returns, i.e. monthly returns are now required from a trader whose intra-Community supplies of goods in any quarter exceeds €100,000 (threshold will be €50,000 from 1 January 2012). Over 1,700 traders have changed from quarterly to monthly filing and the majority file electronically using Revenue's On-line System (ROS). Revenue is continuing to encourage those who file paper returns to file via ROS.In addition, there is a new requirement for a trader who supplies services to business customers in other Member States to file VIES returns on a quarterly basis from 1 January 2010. The implementation of this requirement is progressing on time with over 600 traders currently registered. |
Richard Bruton (Dublin North Central, Fine Gael)
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Question 557: To ask the Minister for Enterprise, Trade and Innovation when the interdepartmental group on administrative burden reduction was established; when it first met; the number of times it has met since it was established; and the dates those meetings took place. [40363/10]
Richard Bruton (Dublin North Central, Fine Gael)
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Question 558: To ask the Minister for Enterprise, Trade and Innovation if the interdepartmental group on administrative burden reduction has yet published a report; if so the number of same; if not, when he expects it to first report to him and when he expects any report by it to be made public. [40364/10]
Batt O'Keeffe (Cork North West, Fianna Fail)
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I propose to take Questions Nos. 557 and 558 together.
The work to reduce red tape in Ireland is being progressed on two fronts. The High Level Group on Business Regulation works to fast-track simplifications to specific red tape issues identified by business; and an Inter-Departmental Group of officials from all Departments, having regulation affecting business, coordinates the measurement and reduction of administrative burdens in a systematic manner, based on the internationally recognized Standard Cost Model.
The Inter-Departmental Group has met to coordinate and drive the process on nine occasions to date as follows: 18th July 2008, 26th September 2008, 6th November 2008, 10th December 2008, 26th January 2010, 23rd February 2010, 22nd March 2010, 13th April 2010, 12th May 2010.
The measurement of administrative burdens using the Standard Cost Model is an exercise that was called for by business, as a baseline for the 25% administrative burden reduction programme, and is being carried out across all Departments with any substantive regulation that affects business. My Department and the Central Statistics Office have already measured burdens arising from regulations under their responsibility, and all other relevant Departments will shortly measure the current red tape costs on business arising from their regulation. Measurement is expected to be completed in 2011 and, following this, a report on the measurement process will be published. Also following the measurement process, simplification plans will be developed in consultation with stakeholders, for implementation.
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