Enterprise and Regulatory Reform Bill

Memorandum submitted by the Institute of Directors’ (IoD) (ERR 26)

Dear Mr Brady

Firstly, thank you for your time yesterday at the Bill Committee session. I wanted to come back to you as promised on your request for further information.

Regulation has long been a top three concern for the Institute of Directors’ (IoD) members. Indeed, in our latest survey, regulation was the second most-significant issue. Economic conditions were unsurprisingly top of member concerns, followed by regulation and then issues of cash flow, tax burden and competition in the marketplace.

The specific question was:

"Which of the following factors (if any) are having a negative impact on your organisation?"

 1)      62% Economic Conditions

2)      47% Government Regulation

3)      37% Cash Flow

4)      35% Tax Burden

        5)      34% Competition in the Marketplace

When asked about the areas of regulation that members felt most burdened by, we found that employment law requirements dwarfed health and safety, reporting and statistical requirements, environmental requirements and a range of other concerns. 70% of those citing regulation as a burden on their business believed that employment law had the most significant adverse affect on their organization.

The specific question was:

"Consider the following list of regulatory areas, and select all those which have an adverse effect on your organisation."

 1)      70% Employment

2)      60% Health and Safety

3)      49% Reporting and Statistics

4)      45% Financial / Fraud

5)      34% Environmental

6)      18% Product Safety Approval

As I stated to the Committee yesterday, when asked about Compensated No-Fault Dismissal, 70% of our members said it would ease the burden on their business, and 36% (separately) said that such a change would increase the likelihood of their taking on additional staff. Similarly, settlement agreements resulted in 60% of IoD members saying that such a change would reduce burdens on their business and 25% (separately) said they would be more likely to take on staff.

All the above research findings were derived from the IoD’s Policy Voice panel. Policy Voice is a representative panel of IoD members and all surveys receive over 1,000 responses from all sizes, sectors and broad demographics of the IoD membership profile.

July 2012

Prepared 4th July 2012