Memorandum submitted by the North East
Chamber of Commerce NECC
REGULATORY REFORM
COMMITTEE INQUIRY
INTO THE
THEMES AND
TRENDS OF
REGULATORY REFORM
The North East Chamber of Commerce welcomes
the Regulatory Reform Committee Inquiry into the Themes and Trends
of Regulatory Reform. NECC is the North East's leading business
membership organisation, representing 4,500 businesses in
an area co-terminus with Government Office for the North East.
Our members are drawn from all sizes of business across all sectors
and employ about 30% of the region's workforce.
The Better Regulation Executive has set out
five key elements that must be satisfied as part of a better regulation
strategy: transparency, accountability, proportionality, consistency,
and targeting. If these criteria are met, this will greatly improve
the system of regulation, which has often been rigid, overly bureaucratic,
and time consuming for businesses.
Please find below NECC recommendations regarding
some of the themes and trends of regulation.
There must be a moratorium on new regulations
during the recession—and this should also prompt a more
thorough and fundamental re-appraisal of the necessity of regulations.
Future regulations should take into account the impact they will
have in all economic circumstances.
NECC welcomes single implementation dates for
regulation, and we welcome the work of the Better Regulation Executive,
but the Government must ensure that businesses are informed that
there is an opportunity to highlight problems with regulation.
This must be done using existing business networks, and using
resources of other public sector agencies. There must also be
a consistent application of regulations. For example, regulations
administered by local government can be treated more stringently
in one part of the country than another—this has a negative
impact on competition.
Regulations on the public sector can transfer
into unnecessary bureaucracy for businesses. For example, regulations
governing public procurement that public agencies must adhere
to lead in turn to a more complex and rigid system for private
sector suppliers. Public bodies must therefore be given clear
guidance on what is and is not permitted under regulations so
they can pass this on to businesses and apply flexibility where
appropriate.
There is a need for a risk-based approach, and
furthermore, there is a need for inspectors to have more detailed
knowledge of specific business sectors. Businesses must have confidence
that they can ask for advice on compliance from Government agencies
without the fear that this may constitute an inadvertent admission
of breaches.
Regulations can often be imposed more stringently
indirectly—for example through requirements of insurance
companies. If regulators make genuine efforts to ensure that the
burden on businesses is minimised, they must also consider how
others will respond.
Regulators must not be allowed to change advice
retrospectively. NECC members have reported occurrences of this
specifically related to HMRC, where an unnecessary burden is often
placed on businesses. This kind of application of regulations
not only places pressure on the private sector, but the public
sector also.
I hope that the above points prove useful. If
you require any further information please do not hesitate to
contact me.
February 2009
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