Regulatory Regimes

Oral Answers to Questions — Business, Enterprise and Regulatory Reform – in the House of Commons at 10:30 am on 28 February 2008.

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Photo of Gordon Banks Gordon Banks PPS (Rt Hon James Purnell, Secretary of State), Department for Work and Pensions 10:30, 28 February 2008

What steps he plans to take to improve his Department's communication of changes in regulatory regimes to businesses.

Photo of Pat McFadden Pat McFadden Minister of State (Department for Business, Enterprise and Regulatory Reform) (Employment Relations and Postal Affairs), Member, Labour Party National Executive Committee

My Department is working closely with business to communicate the Government's regulatory reform programme. The Government have introduced two common commencement dates for regulations. In October last year, 200,000 businesses received simple guidance to support the changes coming in on the common commencement date. On 6 April this year, we plan to reach 1 million businesses with user-friendly summaries.

Photo of Gordon Banks Gordon Banks PPS (Rt Hon James Purnell, Secretary of State), Department for Work and Pensions

With my business background, I share my hon. Friend's aspirations in that field, but has he seen the recent press release from the Scottish Chambers of Commerce highlighting that the cost of regulation to business in Scotland has risen by £600 million to £4.2 billion in the past year, despite the Government's better regulation agenda and the Department's simplification plans? Does he agree that what we need is better regulation, not more regulation?

Photo of Pat McFadden Pat McFadden Minister of State (Department for Business, Enterprise and Regulatory Reform) (Employment Relations and Postal Affairs), Member, Labour Party National Executive Committee

We take the better regulation agenda very seriously. That is why we published the simplification plans, which detail some 700 measures across 19 Departments and agencies that will save some £3.5 billion by 2010. Some of the regulations detailed in the Chambers of Commerce burdens barometer report, from which I think he was reading, have significant benefits for the public, including the working time regulations as well as regulations on the child trust fund, disabled access to transport and so on. We take the business burden very seriously. That is why we produced the simplification plans and are acting in Europe on that agenda.

Photo of Philip Hollobone Philip Hollobone Conservative, Kettering

Low-tax, high-enterprise economies, particularly those in the far east, are powering ahead because the burden of Government regulation there is low and decreasing. What efforts has the Department taken to send civil servants to see how other nations do such things rather better than the United Kingdom?

Photo of Pat McFadden Pat McFadden Minister of State (Department for Business, Enterprise and Regulatory Reform) (Employment Relations and Postal Affairs), Member, Labour Party National Executive Committee

In a globalised economy, we keep a close eye on regulatory regimes around the world. That is why the UK Government are leading the debate in Europe on better regulation and have been instrumental in the European Union's adoption of a target to reduce the administrative burdens on business resulting from EU legislation. We are conscious of the fact that it is not just a UK agenda but an international one.

Photo of Jim Devine Jim Devine Labour, Livingston

On improving communication within the Department, will my hon. Friend ensure that the appropriate Minister writes to me and other concerned MPs who were involved in the Farepak scandal? The report was due to be completed at the end of last month, and a briefing from the Department would be helpful.

Photo of Pat McFadden Pat McFadden Minister of State (Department for Business, Enterprise and Regulatory Reform) (Employment Relations and Postal Affairs), Member, Labour Party National Executive Committee

My hon. Friend makes a good point. We are conscious of the impact of the Farepak affair on constituents throughout the country. The Minister with responsibility for consumer affairs, my hon. Friend Mr. Thomas, leads on that issue, and I understand that the report should be published around Easter.

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