New Clause 1 - Annual report
Regulatory Reform Bill
11:00 am
Mr Richard Page (South West Hertfordshire, Conservative)
New clause 1—I am looking at the hon. Member for Weston-super-Mare as I say this—has many similarities with new clause 3, with which we have a great deal of sympathy. However, I must delicately put it to the hon. Gentleman that our new clause is more finely honed and polished than his own, and I am sure that members of the Committee will take that into account.
The new clause has two simple purposes. First, it would ensure that Parliament receives an annual report on the operation of the legislation and on other regulatory or deregulatory matters. Secondly, it would give Parliament advance notice of the measures that the Government intend to introduce under the legislation in the next 12 months. Ministers in both Houses have been explicit about their regulatory and deregulatory aims, laying most stress on the latter. Conservative Members say amen to that. We want to see deregulation introduced in an effective and continuous fashion. However, what kind of organisation relies on a three-year assessment? No business relies on looking to see how it is doing every three years—in fact, I know of many companies that rely on a monthly assessment. In suggesting an annual report, we are merely falling in line with accepted standard practice throughout the commercial world.
With regard to our own deregulation Bill—which was vehemently opposed by the Labour party in opposition—I freely admit that we made a serious mistake in providing that it could deal only with pre-1994 legislation. That meant that the Committee could fish only in that pond of regulation and could not go further forward. The date should have moved forward annually. That is another reason why we should ensure that we flag up problems that have been experienced and successes that have been recorded. The Government were pleased to indicate in appendix C to the explanatory notes that they are contemplating 51 potential regulatory reform orders. If hon. Members can be tempted with that type of information before the Bill reaches the statute book, why should the Government be coy about their future intentions?
Ministers have made considerable use of the opportunities offered by the Bill. They include preliminary consultation with interested parties and outside bodies, such as the Law Commission, the Scottish Law Commission and the National Assembly for Wales. Draft orders will be laid before Parliament so the effect of prospective proposals and burdens may be judged. Future benefits, costs and savings will be assessed along with changes to a Minister's original proposal. Obviously, there will be parliamentary scrutiny of such proposals by either House or their Committees. The regulatory impact unit in the Cabinet Office, which will be aided and abetted by the Small Business Service and the Better Regulation Task Force, will back up that process, and the Minister for the Cabinet Office lovingly described its work on 19 March when she moved the Bill on Second Reading.
The amendment raises a straightforward issue. The Government have told the House that they are happy to have the advance assessment of proposed reform orders scrutinised, which is fine. However, the actual record should be examined annually so that the two Houses and the country can see how orders work in practice and take a view on their effectiveness and/or their failings. We hope that there are no failings whatsoever, but one must be realistic. There will be weaknesses, the swift eradication of which would surely be in everyone's best interests, rather than waiting for three years.
New clause 1 is the logical corollary to clauses 5, 6 and 8. It would ensure that both Houses were aware of the Bill's impact on orders. Members here and in another place would be able to form their own view on whether the burden of regulation was falling or growing and whether changes must be undertaken. It would also allow outside organisations to compare their experience of regulation with Ministers' claims. Small and medium-sized businesses have a better idea of where the shoe pinches than the bureaucrats in Whitehall and town halls. We should give them a chance to make their views known and to comment as soon as possible. I am sure that the two Deregulation Committees would welcome an assessment, and although I understand that everything will proceed swimmingly in the first flush of deregulation, the Act, as it would then be, and the two Committees are in for a long haul. They should, therefore, have regular assessments to ensure that everything is being kept up to snuff.