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Government Regulation

I was interested to hear the right hon. Member for Wokingham (Mr. Redwood) give an analysis of local authority administration. I should like to draw his and the House’s attention to the activities of two neighbouring councils in Scotland. Perth and Kinross council, which strangely enough is controlled by the Liberal Democrats and the Scottish National party, sought public liability insurance for a G8 alternatives demonstration this week, only to withdraw the requirement two weeks later. Stirling council, which is Labour-controlled, agreed the site for a G8 alternatives eco-village with the appropriate level of guarantees but without the need to back-pedal from a situation that it had itself created. That is a good comparative example of how councils are in control of making their own decisions without intervention from central Government. I welcome the Government’s commitment to dealing with the burden of unnecessary regulation on businesses and public sector providers. I must declare an interest, as stated in the Register of Members’ Interests, in that I run a building supplies business in Scotland. Coming to this House with a business background, I understand that unnecessary regulation on business and public services can hold back enterprise and stifle ambition. The burden of paperwork ensuring that companies conform to regulations from Westminster and Brussels can take a considerable time to complete and, as such, has an impact on the time management of employees and directors alike. This is not, however, a new phenomenon. Having been involved in the building trade for more than 25 years, I have noted that red tape has always placed a burden on companies and employees. The Government’s ambitions here and now represent a real attempt to change the culture that exists within Government, which often creates needless administrative processes for companies and sometimes holds back the development of smaller companies. The Government’s desire to remove unnecessary regulations while maintaining the benefits of many existing regulations makes their aim stand out from the Opposition’s.Good regulation has provided protection for employees and consumers. It has ensured that standards are kept high and that health and safety is maintained. As we heard earlier, the UK is recognised world wide as a leader in regulatory reform. As our economic prosperity shows, we can ensure that those reforms add to our international standing. Good regulation can, often does and should always impact positively on the business sector, leading to improved working environments, growing output and improved financial performance. The reason for better regulation is clear. We will experience not only the benefits of freeing up employee time but financial benefits for businesses. I am sure that many of my hon. Friends have seen the estimation that by implementing changes to such regulations we can increase British prosperity and productivity by approximately £20 billion. Similarly, the removal of some regulations and paperwork in the public services will free up time for public service employees, allowing them to focus more on the provision of their specific service and improve efficiency. However, that must neither be done through the removal of standards by simply erasing the regulations as Conservative Members wish, nor by compromising key reforms such as increased paid holiday for part-time workers, increased maternity and paternity rights or the minimum wage, which Conservative Members found they did not have the time to support when it was introduced. A different approach to inspection is also required. A large proportion of the forms that businesses must complete results from the many inspections to which they are subject. Adapting the process whereby inspections are made so that companies do not face unnecessary repeat inspections will cut down the burden that that places not only on companies but on the bodies conducting the inspections. That will free up time for inspectorates, allowing them the opportunity to perform more thorough inspections and potentially allowing an opportunity to review the necessity for some inspectorates.