Select Committee on Regulatory Reform First Special Report


3 Managing the flow of regulatory reform orders

Background

25. Since the Regulatory Reform Act came into effect on 10 April 2001, we have been engaged in dialogue with the Government about how best to ensure a regular and even flow of proposals and draft orders before the Committee. If we are to be in a position to conduct efficient and effective scrutiny of regulatory reform orders on behalf of the House, it is vital to ensure an even flow of regulatory reform items. To this end, a convention has developed between the Committee and the Government whereby, as far as possible, no more than one proposal for a regulatory reform order or one draft order is laid before Parliament in any one sitting week.[27] This convention initially developed under the deregulation procedure set up by the Deregulation and Contracting Out Act 1994 and has continued under the Regulatory Reform Act.

26. In its memorandum of May 2002, the Government expressed concerns that the limitations imposed by this convention created "a real risk of logjams developing in the medium term".[28] The Government was prompted to raise concerns because, at the time, it anticipated that considerably more proposals for regulatory reform orders would come forward in 2003 than has in fact proven to be the case. We discussed the Government's concerns in our special report of October 2002, in which we emphasised that our principal interest was in encouraging full and proper use of the regulatory reform procedure, while ensuring that draft orders received the requisite degree of parliamentary scrutiny. To this end, we stated that, provided the Government ensured that there was a regular and even flow of regulatory reform items coming before us:

    … we should have no difficulty in dealing with up to two items laid in any sitting week, provided that at least one of those is a draft order, at "second-stage" scrutiny. We also suggest that it may, alternatively, be possible for us to deal with the laying before Parliament of up to two of the less complex proposals at "first-stage" scrutiny.[29]

27. Prior to our October 2002 report, we had in fact already demonstrated our willingness to assist the Government in progressing its regulatory reform programme by accepting four proposals for scrutiny in the fortnight before the 2002 summer adjournment, one of which was the longest and most complex proposal we have yet examined.[30] In addition, between July 2002 and July 2003 we have on three occasions accepted two items for laying in a single week; on two of these occasions, one of the items was a proposal for "first-stage" scrutiny.

Cabinet Office memorandum

28. The Government has responded to our October 2002 comments by stating that "it welcomes the Committee's confirmation that it has no problem in dealing with up to two items laid in any sitting week",[31] although it has also acknowledged that "concerns about whether high numbers of regulatory reform orders would stretch the capacity of the Committees [have] not been fulfilled".[32]

29. We are pleased that the Government appears to have accepted our suggested arrangements. In particular, we welcome the Minister's recognition that the Government has "everything to gain from making sure that the Committee is able to discharge its functions at the same time as we are pushing departments to try to drive forward a more steady flow of RROs than has been emerging."[33]

30. However, we are concerned that the Government's memorandum repeats our confirmation in slightly looser terms than those in which we initially phrased it: we in fact stated that we should have no difficulty in dealing with up to two items laid in any sitting week provided that at least one of those was a draft order, at second-stage scrutiny (or that both items were "less complex" proposals for first-stage scrutiny). The memorandum also goes on to suggest that, but for the developments set out in our October 2002 report, the Government would have been prevented from progressing more than 18 proposals in the 2003-04 Session.[34] We do not consider the Government to be justified in drawing this conclusion, given that we have always sought to make clear that our principal concern is to ensure efficient and effective scrutiny, rather than to hinder the progress of the Government's regulatory reform programme. If it transpired that our capacity to consider regulatory reform items was creating real difficulties for the Government in taking regulatory reform business through Parliament, we would be happy take a constructive approach and discuss these difficulties with the Minister. Our impression is that we are some way away from this situation.

31. In the interests of clarity, we once again summarise our position on the timetabling of regulatory reform orders:[35]

  • In order to ensure efficient and effective scrutiny, we consider that the Government should endeavour to ensure that there is a regular and even flow of proposals and draft orders coming before Parliament
  • As far as possible, the Government should aim towards the objective that no more than one proposal for a regulatory reform order or one draft order will in normal circumstances be laid before Parliament in any one sitting week.
  • Where this proves impossible, we are prepared for the Government to lay two items in any sitting week, provided that either at least one of those items is a draft order, at "second-stage" scrutiny. We are also prepared to consider the possibility of the Government laying two, less complex, proposals for "first-stage" scrutiny.
  • Should the flow of regulatory reform orders increase to such an extent that these arrangements constitute a restriction on the Government's ability to progress its regulatory reform programme, it would then be for us and the House to consider how to proceed.

If these arrangements were to constitute a genuine restriction on the Government's ability to take its regulatory reform programme forward, we would expect the Minister to approach us at an early stage.


27   For a more detailed history of this convention, see: Deregulation Committee, Fourth Report of Session 2000-01, The Final Deregulation Proposals, HC (2000-01) 450, para 2; Deregulation and Regulatory Reform Committee, First Special Report of Session 2001-02, Further Report on the Handling of Regulatory Reform Orders, HC(2001-02)389, paras 6-10; Regulatory Reform Committee, HC (2001-02) 1272, paras 9-14. Back

28   Regulatory Reform Committee, HC (2001-02) 1029, para 2.13 Back

29   HC (2001-02) 1272, para 12 Back

30   Proposal for the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 Back

31   Appendix 1, para 2.10 Back

32   Ibid. Back

33   Q 23 Back

34   Appendix 1, para 2.10 Back

35   See above, n 27 Back


 
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