HC Deb 26 February 1996 vol 272 cc576-7
10. Sir Donald Thompson

To ask the Chancellor of the Duchy of Lancaster what guidance has been issued to Ministers on the preparation of compliance cost assessments. [15246]

Mr. Freeman

Following publication of the new guidance booklet on compliance cost assessments on 25 January, I have written to all departmental Ministers asking them to ensure that the new guidelines are observed in their Departments. The guidance includes a requirement for Ministers to sign off personally all compliance cost assessments and to certify that the benefit of the regulatory proposal exceeds the cost.

Sir Donald Thompson

Will my right hon. Friend confirm that he agrees that compliance costs and likely compliance costs must be rigorously examined and the whole of an industry consulted before legislation from either Britain or Europe is accepted without compliance costs? Often, the cost of compliance to a large firm is negligible, while the cost to a small firm of compliance to the same regulations is relatively huge.

Mr. Freeman

I agree with my hon. Friend and I am happy to say that the European Commission has accepted in principle that it will follow the practice that we have adopted in the United Kingdom and will introduce compliance cost assessments for new draft directives and regulations before the end of the year.

Mr. MacShane

Surely the Minister will agree that one of the most important elements of any compliance cost system is that companies or individuals who are bankrupt are not allowed to continue trading? Do not the revelations yesterday, that No. 10 has spread its protective arm over the hon. Member for Bromsgrove (Mr. Thomason) to allow him to keep trading while bankrupt, show that there is nothing but contempt for the normal operations of business at the heart of our Government system?

Mr. Freeman

I am grateful to the hon. Gentleman for his support for general deregulatory measures in company law, auditing and other financial requirements. The Government have an excellent record over the past 24 months in introducing deregulatory measures in relation to auditing and accounting standards for small firms.