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This item was published during the term of a previous administration that ended in April 2007

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First Improving Regulation Annual Report

13/12/2004

Scotland's first Improving Regulation Annual Report highlights the fact that most regulations that affect Scottish businesses are generated at either an EU or UK level.

The report reveals that in 2003/4 the Executive completed 30 Regulatory Impact Assessments (RIA) of various policy initiatives. Of these, only 11 were Scottish initiatives - the rest were from the EU. This compares with 182 RIAs at a UK level, of which 30 dealt with EU initiatives.

These figures back up anecdotal reports from Scottish businesses, who believe that EU regulation along with UK reserved areas of regulation such as employment and health and safety make the most demands on their resources.

Enterprise Minister Jim Wallace said the report proved how crucial it was for the Executive to engage constructively at both EU and UK levels to help ensure Scottish issues are taken into account.

The Minister also spoke of the importance of ensuring Scots businesses are not held back by out-dated, unjustified or over-zealously enforced regulation - no matter where the origin of the regulation was.

He said:

"The report is the first of its kind in Scotland and we are committed to producing one annually from now on. This will help us drive the improving regulations agenda forward and demonstrates our commitment to openness and listening to business.

"As this report is the first it looks at the progress we have made since devolution. And I believe progress so far has been good.

"Scotland's devolved government has introduced easier and more meaningful consultation procedures, ensured Regulatory Impact Assessments accompany legislative proposals, brought in measures to review legislation after its introduction, sought alternatives to legislation, fed in to EU and UK legislative reviews and encouraged our agencies to adopt an appropriate enforcement regime without unnecessary gold plating or over zealous interpretation of legal provision. Essentially we want to ensure that regulations are as "light touch" as possible."

Despite the progress made, Mr Wallace urged businesses and individuals to help continue the good work by "naming and shaming" the regulations causing them concern.

He promised that if the regulation falls within devolved powers, the Executive would either provide a rationale for it - or take remedial action.

Mr Wallace said over-regulation is a problem much quoted by business as holding them back.

"We are committed to helping business and, as a result, improving regulation is something I have made a priority.

"Good regulation is, of course, about striking a balance. Where regulation is necessary and justified to protect for example the environment, or the workforce, we will continue to support it.

"However we intend to target regulations that are unjustified or over-zealously enforced. By doing so we will foster conditions in which Scottish businesses can continue to flourish and the Scottish economy can continue to grow

"That is why we need the help of businesses to point out the devolved Scottish regulations which are most damaging. We need to hear of regulations which are past their sell by date and should be weeded out. We will either justify or remedy any regulations businesses highlight as a problem."

"The annual report demonstrates that the EU and UK are the main sources of regulations effecting Scotland. That is why it is crucial we engage at this kind of level if we are to reduce the regulatory burden.

"That is why I have been raising these matters in my recent meetings in Brussels and Whitehall. I am determined to work with business and to tackle the issue of regulation at home, in London and in Europe."

Page updated: Monday, December 13, 2004