Stephen Donnelly (Wicklow, Independent)
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Question 106: To ask the Minister for Public Expenditure and Reform the procedures operating in his Department for identifying when a Bill requires a poverty impact and or regulatory impact analysis and when it is exempt; the procedures for conducting and publishing that analysis, when applicable; and if he will identify, by rank or position, the officials responsible for managing and making decisions on this process. [33987/12]

Brendan Howlin (Wexford, Labour)
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Regulatory Impact Analysis (RIA) is a tool used by Departments to assess the costs, benefits and qualitative impacts of regulatory proposals. The use of this tool has been mandatory in relation to proposals for primary legislation as well as significant secondary and EU regulations since 2005, although, in general the practice to date has been that RIAs were only published once a Bill or Statutory Instrument was published.

My Department undertakes Regulatory Impact Analyses and Poverty Impact Assessments in accordance with the relevant guidelines. Regulatory Impact Analyses (RIA) are carried out in accordance with guidelines published in 2009 and Poverty Impact Assessments (PIA) are carried out in accordance with the latest guidelines for such assessments published by the Social Inclusion Division of the Department of Social Protection. Poverty Impact Assessments are integrated within the Regulatory Impact Assessment process, which includes a specific requirement to examine the impacts of regulatory proposals on the socially excluded and vulnerable groups.

In addition the Central Expenditure Evaluation Unit in my Department is available to advise on some of the more analytical components of RIA, for example in the identification and measurement of costs, benefits and impacts.

Although RIA can potentially benefit all policy areas/regulations, it is not compulsory to apply RIA to the Finance Bill, emergency, security and some criminal legislation. These exceptions are interpreted very narrowly. Even where a RIA is not formally required, however, Departments may use the process as a matter of good practice. Where emergency legislation is required there is no requirement for RIA to be applied. In addition the publication of a RIA may not be appropriate in the case of tax law/ regulations or the imposition of charges because of their sensitivity and the need to guard against possible evasion or avoidance.

With regard to the officials responsible for managing and making decisions on this process as a general rule, it is officials working in policy sections who have responsibility for conducting RIAs. This is because, as experts in the particular policy section, such officials are best placed to identify policy options and the range of costs, benefits and impacts associated with those options. Although the guidelines do not stipulate the decision making process, the reviews are typically attached to Memoranda for Government, and would therefore be subject to clearance at a senior level within my Department.