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Government Regulation

I shall deal with the effect in various Departments shortly. Adapting the process whereby inspections are made so that companies do not face unnecessary repeat inspections will free up time. My right hon. Friend the Chancellor clearly demonstrated his commitment in the Budget, and Departments will be challenged to simplify and reduce regulations. The move to a more intelligent, risk-based approach will be good for most businesses, which will experience a lightening of their load. By reducing the number of inspectors who deal with business from 29 to seven and those who deal with public services from 11 to four, businesses, the public sector and the inspectorates will all become more efficient.We are beginning to experience improvements in Departments; for example, the Department for Environment, Food and Rural Affairs has committed itself to reducing its administrative burden by 25 per cent. Other Departments are working on similar plans. Cutting the amount of inspections could be complemented by discussions in the EU on the need for better regulation both in and from the EU. I am confident that the Government’s ministerial team will deal with that European burden. I hope that they will perhaps use the UK presidency of the EU to push for an agenda for change on that. I understand that there are plans to introduce a Bill on better regulation and that it will try to remove outdated and unnecessary legislation. At the same time, we must introduce tougher penalties for businesses that do not comply with the remaining regulations. Removing the burden of some red tape will assist some companies, but it may also encourage others to risk non-compliance. That should carry a penalty that is sufficiently severe to deter the said business from taking such avoiding action. I applaud the Government’s aim to reduce regulations, but I would ask the ministerial team involved to provide a mechanism whereby those businesses that wish to comply can get easier access to a basic level of information, possibly even sector by sector and through developing technologies. That would make it easier for businesses, especially small businesses, to comply. We want our business leaders to develop their businesses and to be able to face the challenges of an ever-changing world. The Government’s proposals are very useful in that regard, but we can always do more to help, and I hope that the Ministers will feel able to include such measures in any legislation on these matters that they introduce.