Enda Kenny
Question:4 Deputy Enda Kenny asked the Taoiseach if he will report on the Implementation of the Organisation for Economic Cooperation and Development report on regulatory reform; and if he will make a statement on the matter. [25058/10]
Regulatory Reform
Eamon Gilmore
Question:5 Deputy Eamon Gilmore asked the Taoiseach the progress made regarding the implementation of the Organisation for Economic Cooperation and Development Report on Regulatory Reform; and if he will make a statement on the matter. [26377/10]
Caoimhghín Ó Caoláin
Question:6 Deputy Caoimhghín Ó Caoláin asked the Taoiseach if he will make a statement regarding the position on regulatory reform [27961/10]
I propose to take Questions Nos. 4 to 6, inclusive, together.
Progress on implementation of the OECD's Report on Regulatory Reform in Ireland , published in 2001, has been reported on many times in this House, particularly in the context of the follow-up to the Government’s 2004 White Paper on regulation, Regulating Better. The regulatory reform or better regulation agenda covers a wide range of actions and initiatives and individual Ministers are responsible for reporting on those recommendations relating specifically to their sectors. The better regulation unit in my Department is tasked with driving better regulation across Government and supports a number of key projects in this regard.
In October of last year, the Government published a statement on economic regulation, which provides a framework for the future development of economic regulation in Ireland. The statement covers issues such as governance and accountability; the appropriateness of regulatory structures and mandates; cost effectiveness and engagement with stakeholders. It commits relevant Ministers to reviewing the roles and mandates of regulators at least every five years and they will also have to approve planned expenditure by regulators, including industry levies, following consultation with stakeholders.
The Minister for Transport will bring forward legislation to merge the Commission for Aviation Regulation and the regulatory functions of the Irish Aviation Authority with the National Transport Authority to create a single transport regulator.
In line with the commitment in the Government statement to initiate an Annual regulatory forum, I met key regulators, the Competition Authority and the National Consumer Agency, together with the Tánaiste and Minister for Education and Skills and other relevant Ministers at the end of February to discuss the implementation of the Government statement and the contribution that improved competition and regulation across sectors can make to economic recovery and renewal.
Arising from these discussions, it was decided that a regulatory liaison group involving senior departmental officials and key regulators would meet regularly to progress key issues. In this context, relevant Departments are currently working with regulators to stress test regulatory frameworks to ensure they are sufficiently robust to be able to respond to major shocks and changes in their sectors and in the wider economy. It is expected the Government will receive a report on these exercises before the end of the year. The regulatory liaison group is also examining issues relating to regulatory capacity and training and my Department is actively engaging with the academic community in this regard.
The better regulation unit also provides support to Departments conducting regulatory impact analysis, RIA, on legislative proposals. It is an important process that allows Departments to assess the potential costs, benefits and impacts of proposed regulation in a way which is both transparent and accessible to stakeholders. An independent review of the operation of RIA was published in June 2008. It acknowledged that good progress had been made in embedding the process since its original introduction but also highlighted some areas where change was needed. Arising from the review's recommendations, revised RIA guidelines were published last year, which take account, in particular, of the need for improved quantitative analysis and for the increased use of RIA to evaluate draft EU legislative proposals. Following consultation with the Department of Enterprise, Trade and Innovation, specific information was also included in the revised guidelines on the measurement of compliance and administrative costs on business.
Some 320 officials have undertaken the two day RIA training course to date, with a further course scheduled for September. The course content was reconfigured in 2009 to take account of the findings of the independent review and is available not only to departmental officials but also to individuals working in independent regulators. The better regulation unit also delivers shorter RIA modules and an on-line RIA training tool to ensure the maximum possible number of officials are reached.
In addition to the work of my own Department, the Department of Enterprise, Trade and Innovation is leading a Government project to reduce the administrative burdens on business arising from existing national legislation by 25% by 2012 in line with a similar target at EU level. A number of simplification workshops have already taken place to allow stakeholders to make suggestions for red tape reductions. In parallel, the high level group on business regulation is driving efforts in the key areas of taxation, health and safety, environment law, statistical returns, and employment and company law. The group is chaired by the Secretary General in the Department of Enterprise, Trade and Innovation, and includes business and union representatives as well as high level officials from relevant Government Departments. The group last year asked the Department of Enterprise, Trade and Innovation to bring together a group of regulatory enforcement bodies to look at the issue of risk-based enforcement and expects to receive a report on this matter later this year.
The OECD is currently conducting a review of Ireland's regulatory systems and processes. The review is being conducted as part of a set of similar reviews covering the original 15 EU member states which is being funded by the EU Commission and covers issues such as regulatory impact analysis, administrative burden reduction and approaches to enforcement. My Department is co-ordinating the Irish Government input into the review and it is currently expected that the report will be completed later this year.
I would need to read the reply three or four times to understand the actual meaning of some of the phraseology given to the Taoiseach.
In 2008, the Government said it intended to reduce red tape for business by 25% by 2012. It is perfectly obvious that many businesses in this country are being strangled by having to allocate serious resources to deal with it, that is, a person spending half a day per week filling forms for the Government and so forth. The Irish Exporters Association said last March that it had seen little evidence of red tape reduction. Does the Taoiseach have a response on the progress made on his Government's commitment to reduce red tape for business by 25% by 2012? What is the position with that at present? Is there any evidence of it?
I answered that question in previous Question Times, when I gave the detail in respect of that question when it was put down for reply. The brief I have with me today deals more with the regulatory arrangements.
More than a year ago the Tánaiste said that Government Departments were identifying what were called "information obligations" dealing with the requirements of regulatory reform, with particular reference to areas that were causing the biggest burden for business. She said this included all areas of regulation, including taxation, health and safety, statistics and employment and company law. She went on to say that work was well advanced in measuring obligations in company law, employment and health and safety law. She said that simplification plans would follow on foot of this important work.
An employer told me a few days ago that he was charged €150 when somebody called from the Health and Safety Authority to explain to one of his workers how to get down from a dumper. The worker had been driving dumpers for 20 years. While these matters are important, it appears that the simplification plans are not yet in place. What is the status of the simplification plans commitment given by the Tánaiste? Have these plans been designed or will they be published? Does the Government intend to introduce a standard cost model to assess properly the impact of regulation on small business? This is important for the retention of employees and the potential to recruit new employees. What is the status of the simplification plans mentioned by the Tánaiste in respect of company, employment and health and safety law, and is it intended to introduce a standard model for the regulation of small business?
As I said in my reply, detailed questions in respect of specific departmental work need to be put to the Department concerned. Total savings of €20 million have been identified in a number of individual administrative burdens which were measured. The high level group is chaired by the Secretary General of the Department and business and trade union representatives are members of the group, which is due to report before the end of the year on the ongoing work. This will indicate what further steps can be taken.
Is it intended that the high level group will make any specific recommendations about reducing the amount of red tape that business has to deal with and about simplifying the regulatory regime that now applies to many areas of life? With regard to his Department's unit dealing with better regulation, my understanding is that this was conducting some kind of review of all of the regulatory systems and that a report would issue later in the year. When is that report expected?
As a result of a meeting with the regulators and the Competition Authority, a liaison group is in place to examine all these aspects. Arrangements exist under the regulations to review individual regulatory procedures in the various sectors once every five years. In the meantime, the liaison group is looking at that issue as well.
The better regulation unit in the Department of the Taoiseach exists to facilitate ensuring there is sufficient training and sufficient initiatives in place to enable the people in the service to take on board the requirements that are now set out, for example, in developing proper regulatory impact analyses in respect of legislative decisions and ensuring proper analysis is undertaken by people competent in this area. More than 320 individual public servants from across Departments have been involved in that process as part of training people to do this work sufficiently well.
As the Deputy notes, a group including business and trade union representatives deals with the wider EU project of identifying and reducing administrative burdens on business by 25% over the course of the period involved. This work is ongoing and is on track, I understand.
It has been ongoing for a long time. The former Minister with responsibility for enterprise, the Minister, Deputy Mary Harney, launched a programme back in 2000 which she said would alleviate the significant burden of administrative requirements on small businesses, yet we still hear of cases where some of the requirements on business are absolutely ludicrous. For example, ISME recently referred to a company which was transporting a wide load from Limerick to Dublin and needed to get separate transport licence from six different local authorities along the route, each local authority charging €250 a time for the separate licence. I refer to examples of local shopkeepers being inspected repeatedly for what appear to be relatively minor matters. We hear constant reports about the endless amount of form-filling and information supply that is required of business, none of which seems to add to better regulation. It is a case of regulation by quantity rather than by quality.
For a decade there has been talk of reducing this burden, yet we still seem to be in a position where all this red tape has to be complied with. Government committees and high level groups are looking at the amount of red tape to be dealt with and will then report on it on an ongoing basis, but no effective measures appear to have been taken to simplify the existing regulatory systems. The issue to be addressed is when we will see not just reports from high-level groups, monitoring groups and individual Departments but commonsense rationalisation and streamlining of the regulatory regime.
I contend that is being done. Some €20 million worth of measures have been identified and are in place. This initiative began as a result of the Spring Council meeting at EU level a few years ago. The EU 15 are being monitored in that respect and have those arrangements in place. We are proceeding along the lines and doing the work as envisaged. Individual issues will be raised and where each local authority sees the wide-bodied vehicle passing through, it saw an opportunity to claim a fee. Clearly, there should be one overall fee but then the question arises as to who should get it. Individual examples can be cited where it would have been better to deal with that comprehensively as a single trip from A to B. Perhaps the host licensing authority would be the beneficiary of that. There are always opportunities for better arrangements. By the same token, situations arise where there are problems related to health and safety or other issues. Deputies in this House would be the first to stand up and ask whether people are in compliance with the regulatory arrangements. We need to see perceived proportionality and consistency in respect of regulation. A commonsense approach is required and it is important those tasked with compliance and enforcement functions, which are statutory obligations that cannot be ignored, apply common sense and give people an opportunity to put their houses in order where they deem there is a willing partner on the other side in the employer community, prepared to work with the authority to rectify a safety issue or an issue concerning consumer goods. It is important that a balance is struck and one needs people with good judgment to initiate and enforce the arrangements.
The Government White Paper on regulatory reform has a list of actions relating to the legislative process. One calls for provision of better, improved information on new legislation and commits to ensuring Departments and Government offices will provide Deputies with an improved information flow in respect of promised and pending legislation and, specifically, the publication of the heads of a Bill where feasible or appropriate. I have asked this question of the Taoiseach a number of times. Has progress been made? From my position, it does not appear to be the case. I cannot recall the last time I was circulated with the heads of a Bill. I am the spokesperson on health and children yet I cannot remember the last time the Department of Health and Children and the Minister, Deputy Harney, provided the heads of the Bill even though a number of items of legislation from that Department are going through the Houses. The commitment is there. What is the view of the Taoiseach on improvements to be made to live up to that promise? A number of items of legislation are promised for 2010. Does the Taoiseach know if the heads of any of these Bills will be published during the summer recess in order that Deputies have an idea of what will be addressed by them on the resumption of sittings after the recess?
I do not have that information but I will check the points raised by Deputy Ó Caoláin regarding the extent of improvement made in this area and to what the recommendations refer. I revert to the Deputy.
I thank the Taoiseach for agreeing to do that. Does the Taoiseach agree it would be a worthwhile exercise to examine each Department with regard to this commitment in the White Paper? Does he acknowledge that this commitment has been made over a number of years by his predecessor and during his own time in office? However, there is no evidence that there has been any improvement, certainly in the portfolios to which I am exposed. It would be a worthwhile exercise to demonstrate to each Department, particularly those that are failing completely to live up to the Government's commitment in that White Paper on regulatory reform. It is to be hoped that a new application of the previously-stated intent will apply from the autumn. Is the Taoiseach in a position to inform Members how detailed an examination of this issue he is prepared to undertake?
As I stated, I will revert to the Deputy as to what is the position in respect of the recommendations to which he refers. I do not have the information to hand. The purpose of Question Time is to give the Deputy such information and I undertake to get it to ascertain where we stand on it. As the Deputy is aware, there are occasions on which legislation is brought forward quickly. Some of the arguments about this are that it is not brought forward quickly enough and detailed legislation is sought all the time by Members. However, I will check into the matter and will revert to the Deputy.
I seek clarity in respect of regulatory impact assessments, RIAs. Does the Taoiseach agree that it is quite extraordinary that regulatory impact assessments are never published by Departments? When European Union directives are being introduced, the Secretary General of each Department has all the evaluations of the impact of such regulations but they never are discussed in this House. Second, I refer to the new Europe 2020 job strategy, which is about the European Small Business Act that has been initiated by the European Commission. In light of the impact on jobs and the backbone of the economy, can the Taoiseach clarify that in future, the RIAs for all directives and their interpretation and transposition into Irish law, especially on business with less regulation and bureaucracy, as well as investment in research and development, should be debated within the Parliament? This should be done to get a clear evaluation of such RIAs because it is too late after they have been transposed into Irish law.
In many cases, regulatory impact assessments form part of memorandums for the Government. They come before the Government and are subject to that wider confidentiality rule. However, as for being able to explain the basis for legislation and the reason a particular range of steps or initiatives have been taken, debates on legislation, whether on Second, Committee or Report Stage, offer an opportunity for people to glean from the Minister what is the background to the assessment.
Moreover, many Departments publish RIAs and relevant legislation on their websites. There are many issues that must be considered when assessing the best way to manage the publication of legislation and RIAs on departmental websites. These issues include accuracy, consistency across Departments and other technical issues. The Government works closely with stakeholders, including the RIA network, as to the best approach to implementing the recommendation. New RIA guidelines give specific details of where to publish revelatory impact assessments on departmental websites. It was agreed that if a Department's website already has a legislation page, then the RIA should be published next to the relevant item of legislation on that page. If no such page exists, the RIAs must be published on a dedicated RIA page, together with a link to the legislation to which they relate. This has been the practice recently.
Deputy Perry, with a brief supplementary.
One issue with which I am familiar on foot of my experience as Chairman of the Joint Committee on European Scrutiny pertains to the transposition of European Union laws. I refer to the major impact of the matter that is of greatest concern at present, which is that RIAs that would not breach Cabinet confidentiality are not being circulated. Consequently, the transposition of such directives may pose massive difficulties for small companies with unnecessary red tape and the elimination of possible research and development funding. I believe that a unique opportunity is being missed whereby many of the difficulties that emanate from Europe could be discussed in this Chamber long before they are transposed into law.
Will the Taoiseach make reference to the Small Business Act, in light of the publication by the European Commission of Europe 2020, which is a major document on jobs? The Commission has a huge initiative in respect of the Small Business Act. What is the Government doing in respect of its implementation in Ireland and the support for small companies?
The 2020 strategy has been adopted at the previous European Council meeting. There will be a detailed legislative response at European and other levels regarding that. I accept Deputy Perry's point that there is an increasing body of legislation and directives that require scrutiny. Under the Lisbon treaty we now have a greater degree of involvement by national parliaments. In the past it was the case that directives were already adopted and it was a question of trying to work out the impact thereafter. A major amount of work is put on the Joint Committee on European Scrutiny by the Lisbon treaty provisions . I accept it is important that in respect of important areas of legislation we deal with them in as timely a fashion as possible. Much of the legislation and regulations are not contentious or germane to the central economic or social issues. It is incumbent on committees and Departments to liaise with the European Commission Directorates to try to ensure that work that is in preparation that has the potential impact to which the Deputy referred would be considered and that where an input is required by both Parliament and Departments we should arrange for that to be done. The point is well made.