Written answers

Wednesday, 7 March 2012

Department of Enterprise, Trade and Innovation

Economic Competitiveness

6:00 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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Question 88: To ask the Minister for Jobs, Enterprise and Innovation his policy on reducing costs for businesses; and if he will make a statement on the matter. [13157/12]

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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Question 93: To ask the Minister for Jobs, Enterprise and Innovation his policy on reducing red tape for businesses; and if he will make a statement on the matter. [13166/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 88 and 93 together.

International benchmarking statistics reveal that Ireland imposes a relatively low burden of regulation on business. The Forfás Competitiveness Scoreboard 2011 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 and costs 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, drives the measurement and reduction of administrative burdens in a systematic manner, based on the internationally recognised Standard Cost Model. To date, the High Level Group has progressed a range of administrative burden issues brought to its attention by business and continues to drive progress on further issues. The Group continues to work with business interests to identify new opportunities for simplification.

Good progress has been made by my Department and its Agencies in reducing administrative burdens with a reduction of over 23% having already been achieved. This amounts to an annual saving of over €198 million. Details of all the initiatives making up this total are available on my Department's website.

My Department also co-ordinates the cross-government measurement and reduction of administrative burdens, towards the 25% target to be reached by the end of this year. A project to measure the burden imposed by regulation under the responsibility of seven Departments and Revenue was initiated in September 2011. I expect results from the first cluster of Departments by the end of the first quarter this year and from the second cluster by the end of quarter two.

When the measurements are complete, we will know the administrative burden arising for business as a result of regulation under the responsibility of each of these Departments, as well as how much these burdens have been reduced since the base year, which is 2008. Each Department must then draft a Simplification Plan setting out how they will achieve the remaining reductions to reach the 25% target. The first cluster of Departments should report to Government with Simplification Plans by the end of quarter two, and the second cluster by end quarter three.

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