Select Committee on Regulatory Reform First Report


5  Assessment of the proposal against the Standing Order No. 141(6) criteria

Inappropriate use of delegated legislation

24. Both proposal A and proposal B appear to be appropriate for delegated legislation.

Removal of burdens

Proposal A: Sunday trading notification requirementsof burdens in respect of England

25. The Department considers that proposal A imposes the following burdens:

a)  A burden on occupiers of large shops, who are required to administer the notification of Sunday trading hours; and

b)  A burden on local authorities, who are obliged to maintain a register of such notifications.

26. In addition, we consider that the requirement on local authorities to make a register of Sunday trading hours accessible to the public may also constitute an additional burden on an authority.

Occupiers of large shops

27. The Department suggests that the removal of burden (a) would benefit occupiers of large shops by reducing their administrative costs. We consider that the occupiers of large shops may also benefit from not having to wait two weeks between notification of a change to Sunday trading hours and implementation. We are satisfied that the proposal removes a burden on the occupiers of large shops situated in England and Wales wishing to trade on a Sunday.

28. A number of respondents to the consultation, generally representing national chains of large shops, suggested that the notification requirement was particularly burdensome for large shops wishing to modify their Sunday trading hours for the Christmas season.

Local authorities

29. The Department states that the removal of burden (b) would benefit approximately 300 local authorities who are presently required to maintain a register by releasing resources to do other work. We consider that local authorities would also benefit from not having to make arrangements for public consultation of a register of notifications. We are satisfied that the proposal removes a burden imposed on local authorities in England and Wales.

Proposal B: sale of methylated spirits on Sundays

30. The Department considers that proposal B, in removing the prohibition on the sale of methylated spirits between 10pm on Saturday and 8am on a Monday, would remove a burden on traders in methylated spirits.

31. The Department argues that the proposal, if enacted, would remove a burden on businesses which trade in accordance with the existing law. We consider that the burden in the existing law in fact falls on all businesses which trade in methylated spirits, whether or not they choose to comply with the law. We are nevertheless satisfied that the proposal removes a burden imposed on businesses in England and Wales and in Northern Ireland.

32. The Department also believes that the removal of this burden would 'level the playing field' between traders who are aware of and comply with the existing law and traders who are ignorant of it or who choose to ignore it.[13]

Maintenance of necessary protection

Proposal A: Sunday trading notification requirements

33. The Department considers that proposal A would not, in practice, lessen any existing protection. It concedes that the proposal would remove a theoretical protection for consumers, as they would no longer be able to inspect the register of notifications held at local authority offices. It nevertheless argues that the protection is not necessary, as 'direct research and information from respondents indicates that the register is not consulted and that maintaining it serves no purpose.'[14]

34. The Department states that large shops opening on Sundays will still be required to display their opening hours. Local authorities will remain responsible for the enforcement of the 1994 Act. Whereas under the present enforcement arrangements, local authorities have to prove that a shop was open for longer than its notified hours, by reference to witnesses, the Department has indicated that, under the proposed arrangements, local authorities will simply have to witness a shop failing to display a notice, or trading outside the overall permitted hours (i.e. trading for more than six continuous hours or trading before 10am or after 6pm).

35. One response to the consultation, from the shopworkers' union USDAW, indicated that the proposal might remove a necessary protection for shopworkers, in that the present arrangements effectively inhibit large shops from changing their opening hours regularly, to the disruption and detriment of the working patterns of shopworkers.

36. We asked the Department whether it considered that large shops were likely to change their working hours more frequently as a result of the change in legislation. The Department considered that the present arrangements do not in fact inhibit large shops from changing their Sunday opening hours, as they are at present free to do so from week to week, subject to making the necessary notifications (at an estimated cost of £12.50 per notification per shop). It has argued that it is not in the interests of large shops to make frequent changes to their opening hours, as this would be likely to annoy and frustrate customers, and that it is similarly in the interests of large shops to ensure that their staff are available for work.

37. The Department therefore considers that the possible adverse effect on shopworkers is unlikely to materialise, and that subsequent discussions with USDAW have convinced the union of that view.[15] It has in addition indicated that "comprehensive protection" for shopworkers in England and Wales who do not wish to work on Sundays is provided for in the Employment Rights Act 1996, and that the hours of shopworkers who do wish to work on Sundays are subject to contractual agreements between the shopworker and the employer. In response to our request for further information, the Department has set out the measures which are presently in place to monitor the working patterns of Sunday shopworkers by means of the quarterly Labour Force Survey.[16]

38. A number of business respondents to the consultation took the opportunity to press for a further review of the operation of the 1994 Act, citing in particular the distinction made between large and small shops and the pressure on large shops to open for longer hours on Sundays. The Department's comments on individual consultation responses state that the proposals do not concern the overall hours within which large shops are permitted to open, nor the maximum length of time they can open. In its comments on the response from the Co-operative Group, which was concerned about any further changes to the 1994 Act, the Department stated that the Government sees no need to review the operation of the Act.[17]

39. We consider that proposal A would not remove any necessary protection. We are pleased to note that the Government sees no need to review the operation of the 1994 Act. We note that the 1994 Act provides a carefully-structured regime for Sunday trading, and that the present arrangements appear to have wide support. Any proposal to alter the present arrangements must proceed on the basis of the fullest possible consultation. Given the nature of these arrangements, and the consensus on which they are based, the presumption must be that the most appropriate route for any further amendment should be by primary legislation.

Proposal B: sale of methylated spirits on Sundays

40. The Department argues that the last remaining useful function of section 26 of the 1889 Act, that of supporting the social law on Sunday trading, was superseded by the passage of the 1994 Act. It does not consider that the proposal would remove any necessary protection. We agree.

Preventing exercise of rights or freedoms

Proposal A: Sunday trading notification requirements

41. The Department considers that proposal A would remove the existing right of members of the public to consult the registers held by local authorities.[18] It nevertheless considered that this right was 'of negligible significance', since 'it appears that the public do not ask to view the register.' It further argued that the right of members of the public to know when a large shop proposed to open on a Sunday would remain, as shops would continue to be required to display their opening hours inside and outside the premises. It might therefore appear that the proposal would not remove any right or freedom which a person might reasonably expect to exercise.

42. The assertion in the explanatory statement was said to have been made on the basis of direct research and a pre-consultation exercise. We asked for further details of the exercise and how it was conducted. The Department has explained that twelve local authorities were contacted directly by telephone, and visits were made to five of these authorities to examine how the registers were used and maintained.[19] The authorities contacted were selected on the basis of geographical spread and their likely experience of operating Sunday opening registers. Officers at the authorities consulted were also asked whether they knew of any other local authorities which might have different views or experiences. We note that the authorities selected for the pre-consultation exercise were not fully representative of the range of authorities which administer Sunday trading arrangements: for instance, few if any of the authorities identified cover rural market towns or new towns.

43. The results of the exercise indicated that, to the knowledge of the responsible officer in each authority, the register of Sunday opening hours had never been consulted. One of the authorities consulted indicated that the register had on rare occasions been found useful, to answer queries from shoppers who wanted to know whether a particular store was open—information which could also have been obtained by contacting the store. Another authority considered that the register was useful in facilitating a check of a store's notified hours against its advertised hours in newspapers. The Department considers that the hours within which a large shop is permitted to open are sufficiently clear to enable a local authority to check a store's compliance with the requirements of the law without recourse to a register.

44. The Department states that it has no reason to believe that the findings of the pre-consultation exercise were not truly representative, and its discussions with the Local Government Association (LGA) have confirmed it in this view.[20] In addition, USDAW officials and the Keep Sunday Special campaign have confirmed to the Department that they have never consulted the register. The Department asserts that Keep Sunday Special were unable to give the Department specific examples of how the register served a useful purpose.[21]

45. We are satisfied that there is no evidence to suggest that maintenance of the register of Sunday trading hours serves a useful purpose. We are therefore satisfied that the proposal, if enacted, will not prevent the exercise of any right or freedom which a person might reasonably expect to continue to exercise.

Proposal B: sale of methylated spirits on Sundays

46. The Department considers that the proposal increases the consumer's freedom to buy methylated spirit on a Sunday. We agree.

Adequate consultation

47. The Department published a consultation document on both proposals on 18 March 2003. The document was sent to 211 organisations, comprising large retailers, some local authorities, business associations, individuals and other organisations.[22] The document was made available on three central government websites and one coordinating website for local authority regulators, in addition to being sent out via the Local Government Association Public Protection monthly bulletin (distributed to some 300 local authorities). Consultees were given over twelve weeks to respond, above the recommended minimum set out in the Government's Code of Practice on written consultation.[23]

48. 46 responses were received: 25 from retailers, one from another business, six from local authorities, three from business associations, three from professional organisations, three from other organisations and two from individuals. The Department's analysis of the responses in raw statistical terms indicates 39 responses in favour of proposal A, three opposed and four neutral. [24] The 35 responses to offer a view on proposal B were unanimously in favour.[25]

49. The consultation document was not sent directly to all local authorities. Annex A of the explanatory statement indicates that the only local authorities specifically to be consulted during the consultation period (as opposed to the pre-consultation exercise) were Liverpool City Council, Manchester City Council and Newport City Council. In addition the Local Authorities Co-ordinators of Regulatory Services (LACORS) were consulted, and notices of consultation were sent out via the LGA Public Protection monthly bulletin. In total, six local authorities made responses to the consultation.[26]

50. On the basis of the pre-consultation exercise described at paragraphs 42 to 44 above, and subsequent discussions with the LGA and LACORS, the Department considered that it was not necessary to send copies of the consultation paper directly to every local authority affected by the present requirements. The LGA considered that it was sufficient to notify the relevant officials in its member authorities by means of notices in its Public Protection bulletin and on the LACORS website.

51. We are satisfied that the Department has consulted adequately on the proposals, and that the draft Order has taken appropriate account of the results of the consultation.

52. As the pre-consultation exercise substantially informed the Department's subsequent consultation strategy, details of that exercise were clearly material to our consideration of the adequacy of the consultation process. While we consider that the consultation strategy adopted by the Department was appropriate to the circumstances, we believe that fuller details of the pre-consultation exercise should have been included in the explanatory statement which accompanied the proposal for the Order. We also consider that the Department should have extended the pre-consultation exercise to a more representative sample of local authority areas.

Costs and benefits

53. The Department does not believe that proposal A would impose any costs on business. The regulatory impact assessment indicates that the annual administrative savings to business and local authorities would amount to £60,000—£75,000.[27]

54. The Department believes that the benefits of the implementation of proposal A, other than cost savings, are the reduction in administrative requirements on businesses and local authorities.

55. The Department sees no costs to business from the implementation of proposal B, but considers the cost savings to businesses currently compliant with the legislation to be negligible.

56. The assessed benefits of proposal B, other than the small cost savings, are described by the Department as:—

—   the removal of a restriction on business;

—  the removal of a restriction on customers;

—  the removal of confusion as to the state of the law in this area;

—  provision for a level playing field for all retailers; and

—  'the removal of unnecessary and archaic legislation from the statute book'.

57. Regulatory impact assessments for proposals A and B are attached to the explanatory statement.[28] On the basis of the regulatory impact assessments which have been prepared, we are satisfied that both proposals have been the subject of, and taken appropriate account of, estimates of increases or reductions in costs or other benefits which may result from the implementation of the proposed Order.


13   Explanatory statement, para 31 Back

14   Explanatory statement, para 34 Back

15   Appendix B Back

16   IbidBack

17   A summary of all responses to the consultation, and the Government's comments, is at annex B of the explanatory statement. Back

18   Explanatory statement, para 38 Back

19   The authorities visited were the City and County of Swansea, Newport City Council, Bristol City Council, Liverpool City Council and Manchester City Council. Authorities contacted by telephone or e-mail were the London Boroughs of Croydon, Haringey, Kingston and Merton, Nuneaton and Bedworth Borough Council, Newcastle City Council and Bromsgrove Borough Council. A table summarising the pre-consultation process is at Appendix B. Back

20   Appendix B Back

21   Ibid. Back

22   Listed at Annex A of the explanatory statement. Back

23   Explanatory statement, para 47 Back

24   Ibid., para 50 Back

25   Ibid., para 51 Back

26   Borough of Poole, Liverpool City Council, Darlington Borough Council, Blackpool Borough Council, London Borough of Enfield and London Borough of Haringey. Back

27   The regulatory impact assessments in respect of each proposal are at Annex C and D of the explanatory statement respectively. Back

28   Explanatory statement, annexes C and D Back


 
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