Select Committee on Regulatory Reform First Special Report


2 Assessment of the working of the 2001 Act

Potential benefits of using RROs

Economic benefits

14. Removing or reducing unnecessary regulation can generate substantial economic benefits. Ruth Kelly told us that all the 20 RROs that had been made "fixed specific problems and reduced burdens" and she gave estimates of the economic benefits that some of the orders had generated.[26] For example, the Business Tenancies Order had produced some £6.5 million per year in benefits to business. The licensing reforms were estimated to have produced economic benefits of £9 million per year. According to the Minister, the benefits were likely to increase when the full benefits of some very important Orders such as those reforming the legislation on fire safety and patents were fully realised.[27]

Greater parliamentary scrutiny

15. While the RRO process has a special role to play in reducing unnecessary regulatory burdens and realising the potential benefits, effective parliamentary scrutiny of the Government's proposals should not be sacrificed. At times, the RRO process has been simultaneously criticised for providing scrutiny of Government proposals that is both inadequate and excessive. For example, it is useful to contrast the Government's comments with the criticisms made of the RRO process by Nicky Padfield in the context of the proposal for the Regulatory Reform (Prison Officers) (Industrial Action) Order when she criticised the wide powers available under the Regulatory Reform Act.[28] We recognise that the RRO process provides the Executive with an alternative procedure for amending primary legislation and may be perceived by some commentators as something of a constitutional oddity. In our view, some anxiety about the RRO process is likely to be derived from the misconception that the RRO process automatically provides less detailed scrutiny than that available during the normal scrutiny of a Bill. In reality, individual clauses within a Bill may be subjected to far less scrutiny compared with that available under the RRO process. We recognise that our prime task is to provide rigorous scrutiny of Government proposals for the amendment of primary legislation by RRO. We believe that we achieve this degree of scrutiny without imposing unnecessary delays and we are prepared to consider suggestions for improving the process, provided these do not compromise our prime task.


26   Q1 Back

27   ibid Back

28   Regulatory Reform Committee, Third Report of Session 2004-05, Proposal for the Regulatory Reform (Prison Officers) (Industrial Action) Order 2004, HC 148, para 23. See also Nicky Padfield's response to the Consultation on the proposal. Back


 
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Prepared 31 January 2005