8 Reducing administrative burdens in
the Community
| (31052)
15019/09
+ ADD 1
COM(09) 544
| Commission Communication: Action Programme for Reducing Administrative Burdens in the EU: Sectoral Reduction Plans and 2009 Actions
|
| Legal base | —
|
| Document originated |
22 October 2009 |
| Deposited in Parliament
| 28 October 2009 |
| Department | Business, Innovation and Skills
|
| Basis of consideration |
EM of 5 November 2009 |
| Previous Committee Report
| None, but see footnotes 23 and 25
|
| To be discussed in Council
| No date set |
| Committee's assessment |
Politically important |
| Committee's decision |
Cleared |
Background
8.1 As we noted in our Report of 28 February 2007, the Commission
put forward in January 2007 an Action Plan,[23]
suggesting ways in which, by means of a concerted effort by the
Community itself and by Member States, the administrative burden
could be reduced by 25% by 2012, leading to savings of some €150
billion. In essence, it proposed that the administrative burden
resulting from Community legislation and its transposition should
be measured using a Standard Cost Model, and appropriate proposals
drawn up in 13 priority areas[24]
accounting for the "vast bulk" of the burden arising
from Community law. In addition, the Commission identified ten
fast track items, which it said could result in a fairly swift
reduction of €1.3
billion, to which special priority should be given.
8.2 This Plan was subsequently endorsed by the European
Council, and we have since drawn to the attention of the House
a number of progress reports provided by the Commission, including
its Third Strategic Review of Better Regulation,[25]
in which it said that it would present Sectoral Reduction Plans
for all 13 priority areas, and propose before the end of its mandate
additional measures in order to achieve the 25% target in 2012.
It has now sought to do this in the current document, and to provide
an over-view of what has been achieved so far.
The current document
8.3 The Commission says that it has completed an
EU baseline measurement of the administrative burdens stemming
from Community legislation and from related national measures
using the Standard Cost Model for 72 acts in the priority areas,
and that this was estimated to be €123.8
billion at the start of 2005. It also found that a very high proportion
of these burdens stems from a limited number of information obligations
in two policy areas (taxation and company law), with the ten most
important obligations accounting of 77% of the total obligation
of Community origin, thus vindicating the initial decision to
concentrate efforts on key priority areas; that information obligations
generally impose a proportionately higher burden on small and
medium-sized enterprises, which lack access to the most advanced
Information and Communication Technologies and in-house staff
with a specialised knowledge; that the degree to which businesses
find information obligations irritating very often has no relationship
to the burdens imposed; and that nearly one-third of burdens of
Community origin are because of "gold-plating" by some
Member States going beyond what is required and the inefficiency
of their administrative procedures.
8.4 The Commission then assesses the progress made
towards reaching the 2012 target, and says that, although this
process did not begin until 2005, major steps have already been
taken, with possible reductions going far beyond 25% having already
been identified. These include measures already put in place or
proposed, which could involve a reduction of €7.6 billion;
measures proposed and pending adoption, which could add €30.7
billion; and preparatory work which could lead to an additional
31 measures with a reduction of €2.1 billion — measures
which together could amount to €40.4 billion, equivalent
to 33% of the total estimated burdens. It adds that some of these
are addressed exclusively at a Community level, whilst others
require joint action with Member States, with its own role in
the latter case being to facilitate the necessary changes. In
the meantime, it notes that all Member States have responded to
the European Council's invitation in March 2007 to set ambitious
national targets for reducing unnecessary administrative burdens,
and that for many better regulation forms part of their economic
recovery plan: and it also stresses the need for these efforts
to be sustained.
8.5 Table I shows the administrative burden and the
reductions proposed in each of the 13 priority sectors, whilst
Table II divides these reductions between measures adopted, those
proposed, and those under preparation.
The Government's view
8.6 In his Explanatory Memorandum of 5 November 2009,
the Minister for Business and Regulatory Reform at the Department
for Business, Innovation and Skills (Ian Lucas) says that this
Communication represents the culmination of significant efforts
by the outgoing Commission to adopt proposals which will deliver
the 25% administrative burden reduction target by 2012, and that
the UK was instrumental in getting the European Council to endorse
such a target. It therefore particularly welcomes this report
on the progress achieved to date, whilst noting that there is
still a long way to go before businesses benefit from the measures
in question. He also suggests that there is a risk the new Commission
will not maintain this momentum, and that it will also not be
prioritised by the new Parliament and upcoming Presidencies of
the Council, though he says that he is reassured by the fact that
Mr Barroso has already indicated that he will make better regulation
a priority of the new Commission, and has announced that he will
take personal responsibility for this in future.
8.7 The Minister adds that the Community targets
complement national targets, where the UK has been a frontrunner,
with Government Departments reporting on progress in their "Simplification
Plans" every December, covering the reduction of burdens
stemming from all laws in force, including legislation of Community
origin. As a result, they have already reported on many of the
measures in the Community programme for UK businesses in areas
such as tachographs: and, in some areas, the Commission is following
the UK's lead — for example, in producing clear and simple
guidance for employers on their health & safety obligations
— whilst, in others, such as the Biocidal Products Directive,
it is responding to the UK's suggestions for simplification.
8.8 The Minister says that it is too early to say
what the overall impact of the Community programme will be for
the UK, since it has yet to adopt many proposals, and others are
still under negotiation in the Council and Parliament. However
the Government has at this stage identified two initiatives with
potentially significant benefits for UK businesses — the
proposal to exempt the smallest companies ("micro-entities")
from the complex requirements of the accounting Directives (which
could save them between £100million and £400million
a year), and a proposal on the application of VAT to electronic
invoicing and VAT invoicing rules more generally.
8.9 The Minister adds that the Better Regulation
Executive in his department will be tracking the savings of the
programme for the UK, and that the Government will also urge the
new Commission to report to the European Council at regular intervals
on delivery towards the target established for 2012.
Conclusion
8.10 In common with the earlier documents which
we have considered on this subject, this Communication seeks to
take forward the welcome aim of simplifying Community legislation,
and the way in which this is implemented by Member States. As
such, it is of obvious interest, and consequently, whilst we are
content to clear it, we are think it right to draw it to the attention
of the House.
TABLE I: BURDENS AND POTENTIAL REDUCTIONS
| Priority area |
Administrative burden (€m)
| Sectoral reduction (€m)
| % reduction
|
| Agriculture | 5,289.7
| 1,891.4
| 36 |
| Annual accounts/ company law
| 14,589.1
| 8,274.5
| 57 |
| Cohesion policy | 929.1
| 222.6
| 24 |
| Environment | 1,180.6
| 242.1
| 21 |
| Financial services |
939.6 |
141.6 |
15 |
| Fisheries | 73.9
| 33.4 |
45 |
| Food safety | 4,073.3
| 1,281.8
| 31 |
| Pharmacueticals | 943.5
| 154.6
| 16 |
| Public procurement |
216,3 |
60,1 | 28
|
| Statistics | 779.5
| 328.1
| 42 |
| Taxation/customs | 87,005.3
| 26,334.2
| 30 |
| Transport | 3,861.7
| 748.2
| 19 |
| Working environment/
Employment relations
| 3,879.2
| 659.6
| 17 |
| Total | 123,760.8
| 40,372.2
| 33
|
TABLE II: SECTORAL REDUCTION PLANS
| Priority area |
Measures adopted
| Measures proposed
| Under preparation
| Total
|
| Agriculture | 1,891.4
| 0 |
0 | 1,891.4
|
| Annual accounts/ company law
| 1,362.9
| 6,911.6
| 0 |
8,274.5 |
| Cohesion policy | 117.6
| 50.0 |
55.0 | 222.6
|
| Environment | 3.6
| 238.5
| 0 |
242.1 |
| Financial services |
142.5 |
0.9 | 0
| 143.4 |
| Fisheries | 19.0
| 14.4 |
0 | 33.4
|
| Food safety | 24.6
| 103.8
| 1,361.0
| 1,489.4
|
| Pharmacueticals | 40.1
| 61.0 |
53.5 | 154.6
|
| Public procurement |
12.5 | 0
| 47.6 |
60.1 |
| Statistics | 328.1
| 0 |
0 | 328.1
|
| Taxation/customs | 3,133.1
| 23,201.1
| 0 |
26,334.2 |
| Transport | 403.8
| 344.4
| 0 |
748.2 |
| Working environment/
Employment relations
| 92.6 |
0 | 567.0
| 659.6 |
| Total | 7,571.8
| 30,716.3
| 2,084.1
| 40,372.2
|
23 (28354) 5924/07: see HC 41-xi (2006-07), chapter
6 (28 February 2007). Back
24
Agriculture, annual accounts/company law, cohesion policy, environment,
financial services, fisheries, food safety, pharmaceuticals, public
procurement, statistics, taxation/customs, transport, working
environment/employment relations. Back
25
(30411) 5791/09: see HC 19-xi (2008-09), chapter 9 (18 March 2009). Back
|
