Written answers

Wednesday, 19 January 2011

Department of Enterprise, Trade and Innovation

Business Regulation

9:00 pm

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael)
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Question 76: To ask the Minister for Enterprise, Trade and Innovation the systems he has in place to assess the cost of competitiveness impact on Irish business from Government legislation; and if he will make a statement on the matter. [2579/11]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The Department of the Taoiseach has primary responsibility for the development and implementation of Regulatory Impact Assessment (RIA) measures across Government Departments. The Department of the Taoiseach has published the Revised Regulatory Impact Assessment (RIA) Guidelines on its website: http://www.betterregulation.ie/eng/Publications/Revised_RIA_Guidelines.pdf. The RIA Guidelines require all proposed regulations to be examined as to whether they could impact on Ireland's business and work environment; economic and technological infrastructure; education and skills; entrepreneurship and enterprise development; and innovation and creativity.

In parallel with this, my Department is progressing work on the reduction of red tape on two fronts. The High Level Group on Business Regulation (HLG) 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 recognised Standard Cost Model. The Government has decided in the National Recovery Plan 2011-2014 to bring forward the targeted 25% reduction of the regulatory burden on business from 2012 to end 2011.

To date 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 announced over €20m of annual business savings in its first Report 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 across Government. The results of this measurement exercise are expected to be published in the second half of 2011. Recent measurements by my Department have demonstrated a further potential €32.7m of savings for business, resulting from simplification in the company law area.

The measurement of administrative burdens using the Standard Cost Model is an exercise that was called for by business, as part of the 25% administrative burden reduction programme, and is being carried out on a prioritised basis 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.

To ensure that the measurement exercise is consistent across Government, and is in accordance with the Standard Cost Model, the exercise does, and will, take some time to complete. This is a process that reaches into every corner of Government that has an impact on Business. Measurement is expected to be completed in 2011. Simplification plans will be developed and implemented following measurement. Business workshops have already been held to identify ideas for simplification in the areas of Company Law and Employment Law and Health & Safety Law, and draft simplification plans are currently being prepared for implementation.

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