Deregulation (Hansard, 26 February 1996)

§ 9. Mr. Barry Jones
To ask the Deputy Prime Minister what assessment he has made of the effect of his deregulation proposals on British manufacturing industry. [15245]

§ Mr. Freeman
As we made clear in our second White Paper on competitiveness, deregulation is central to improving the competitiveness of British industry. Unnecessary requirements stand in the way of market entry, innovation, investment and jobs. We are also ensuring that new regulations are introduced only where really necessary, meet the test of public benefit exceeding cost of implementation and are enforced in a business-friendly way.

§ Mr. Jones
In that case, why have the Government imposed 294 new regulations since 1992? May I please have a truthful reply?

§ Mr. Freeman
If the hon. Gentleman is referring to the press speculation about the document coming from the European Commission, I should tell him that I have not seen that document. Early reports imply that the document is substantially flawed because it includes UK legislation that implements European legislation. We introduce about 1,400 substantive statutory instruments each year and a clear majority of them either have no bearing on business and industry or are deregulatory in nature.

§ Mr. Jenkin
Does my right hon. Friend agree that we are only just beginning to realise the huge magnitude of the regulatory task before us not only in preventing British officials from implementing to the letter everything that is put before them, but in relation to the problem of gold plating European regulations? Not only are some European regulations excessive, but we implement them with excessive zeal.

§ Mr. Freeman
My hon. Friend is right. For far too long in Whitehall, we have added unnecessary additional provisions to legislation that implements directives agreed by various Councils of Ministers. My right hon. Friend the Deputy Prime Minister and I have put a stop to the gold plating of European legislation. My hon. Friend is also right to refer to over-enforcement. It is important that, when officials enforce any European legislation in this country implemented under the European Communities Act 1972, they do so sensibly, and in a balanced and user-friendly way.

§ Mr. Dafis
Does the Sea Empress episode not show the importance of more stringent regulation in some areas? Is that not especially true for the environment, where regulation can stimulate technological inventiveness and therefore produce solutions? For example, is the right hon. Gentleman aware of the work of the Environmental Industries Commission, and of its conviction that Britain needs to recognise the huge importance of environmental technology as a major sector in global industry over the next decade? Will he firmly undertake not to deregulate in the important area of environmental sustainability?

§ Mr. Freeman
Yes.