Government response
THE OPERATION OF THE REGULATORY REFORM ACT 2001:
FIRST SPECIAL REPORT OF SESSION 2004-05
I am writing in response to the Regulatory Reform
Committee's First Special Report of Session 2004~05 about the
operation of the Regulatory Reform Act 2001 (RRA).
I would first of all like to introduce myself as
the new Minister for the Cabinet Office and to thank you and the
Committee for the detailed suggestions made in the report. My
predecessor, Ruth Kelly, gave evidence to your Committee in November
2004 and I have taken her evidence and the Committee's comments
into account when considering the issues your report raises.
BETTER REGULATION AGENDA AND NUMBER OF RROS
I welcome the Committee's on going support for the
better regulation agenda, and share their view of the importance
of keeping the focus on improved outcomes rather than the
means of delivery. I also welcome the Committee's recognition
of the economic significance of the reforms delivered by Regulatory
Reform Order (RRO) to date. RROs will continue to provide a very
useful mechanism for delivering significant reforms in addition
to those that can be delivered by other means.
I note that the Committee considers that Departments
should be required to report annually on their progress in removing
redundant legislation. Since last year departments have indeed
been required to report progress on delivering the better regulation
agenda (including RROs and other deregulatory measures) in their
annual reports. Departmental progress is scrutinised by the Better
Regulation Task Force.
Review of the RRA
The Committees report notes that the Prime Minister
has publicly expressed his support (in his speech to the CBI on
18 October 2004) for amendment to the Regulatory Reform Act to
make it easier to remove redundant legislation. Ruth Kelly's letter
to you. in September on the workings of the Act, and the subsequent
evidence session presented our initial thoughts on areas in need
of reform. These suggestions were based on direct evidence from
departments with experience working on RROs to date.
I share the Committee's view that we now need to
embark upon a full review of the Act, and I very much welcome
the preliminary comments the Committee has made on our suggestions
so far. I particularly note the Committee's view that removal
of redundant regulation should be "at the heart of"
any proposed reforms, and their concern at the constitutionally
significant nature of some of the proposed areas for reform.
These comments form a helpful starting point for
the full review. I can assure the Committee that the Government
fully recognises the constitutional significance of the RRA and
will not undertake any reforms lightly. With this in mind, our
current thinking is that the review of the Act should incorporate
a full public consultation, later this year.
Law Commission and Company Law Reforms
I welcome the Committee's views on implementing Law
Commission proposals by order and agree that the full review of
the RRA should explore the possibility of including a fast track
process for this in the RRA. I understand that Company Law proposals
are already well developed and it is more likely that the Company
Law Bill will contain a power to reform company law by super affirmative
Order, similar to RRO. My officials are working, closely with
the relevant departments on these issues.
Procedural Reforms
The Committee has also responded on a number of the
proposals for procedural simplification made in Ruth Kelly's September
letter.
I note that the Committee considers the case for
a presentation by officials on a case-by-case basis and agree
that a presentation provides an opportunity for officials to explain
and justify the key features of their proposals. I am keen to
ensure that straightforward RROs are made with the minimum of
bureaucracy and 1 am pleased to learn that the Committee will
not require officials to deliver a presentation on very minor
proposals.
Although the RRA does not require a full Regulatory
Impact Assessment to be carried out for all RROs I understand
this was a commitment given during the passage of the Act. I am
pleased that the Committee feels that a thorough analysis of costs
and benefits of each proposal is sufficient.
I look forward to continued close cooperation with
you and the other members of the Committee on this important work.
I am copying this letter to the Prime Minister, members of LP
Committee, and Regulatory Reform. Ministers.
David Miliband
Minister for Regulatory Reform
(22 February 2005)
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