Seán Crowe (Dublin South West, Sinn Fein)
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Question 31: To ask the Minister for Enterprise, Trade and Innovation the progress made to date in reducing the regulatory burden on business by 25%; the timeframe for the completion of same; the actions taken so far; the actions yet to be taken; the actions being taken by him to streamline regulatory enforcement to small and medium enterprise; and if he will make a statement on the matter. [10009/11]

Richard Bruton (Dublin North Central, Fine Gael)
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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 administrative burdens on business 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.

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 continues to work with business interests to identify new 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 available in the second half of 2011.

As far as the 25% target is concerned, my Department has already reduced measured burdens by 22% (or 90% of the target to be achieved), an annual saving of almost €187 million for business. (Details below.) I expect that I will be in a position to announce the initiatives that will make up the remaining 3% before the end of the year.

I intend to initiate a project shortly to measure the burdens across all remaining Departments. This is expected to be completed in the first quarter of 2012. Each relevant Department will then prepare Simplification Plans detailing how they will meet the 25% target within their areas of responsibility.

At the same time, the Risk Based Enforcement Group, set up by my Department in 2008, continues to seek concrete ways for agencies to cooperate, to make their operations more efficient and effective, and reduce administrative burdens on business. As part of this process, the Group is examining the potential of data sharing legislation to facilitate better risk analysis and enforcement.

Administrative Burden Reduction in DETI

The Department of Enterprise, Trade and Innovation has measured administrative burdens arising for business in three key areas of regulation: Company Law, Employment Law and Health & Safety Law. It was found that the burdens across these three areas amounted to some €831 million per annum for business. The Government's 25% target to reduce these burdens dictates that no less than €208 million must be cut from these measured costs.

As of May 2011, 90% of this target has already been reached. This amounts to almost €187 million of business savings each year.

Some of these reductions are as yet potential savings. Making them real savings requires businesses to adopt these newer, more simplified approaches, that have been made available. All firms are encouraged to ensure that they gain the full benefit of this work by reading the guidelines provided, and adopting the low cost options. A list of these simplifications, and details of how businesses can benefit from them, are included below.