§ Lord Simon of Glaisdale asked Her Majesty's Government:
§ What is the meaning and purpose of the new section in explanatory memoranda to Bills entitled Business Compliance Cost Assessment; whether it is intended to cover costs other than those incurred by commercial businesses; and, if not, why not.
§ The Minister of State, Department of Trade and Industry (Lord Strathclyde)My Lords, the new section in explanatory memoranda is to draw Parliament's attention to the best estimates of the impact which legislative proposals would have on business. Their purpose is to help parliamentary scrutiny by providing an early opportunity to take account of implications for business. As published documents they also help other interested parties, including charities and other voluntary organisations, to contribute to the public debate.
§ Lord Simon of GlaisdaleMy Lords, I thank the noble Lord for replying to my Question. Will the matter be further considered, perhaps particularly in the light of the current Education Bill? That Bill has nothing at all to do with commercial business but, on the other hand, loads heavy administrative costs on the universities. Should not the purpose of the new rubric be extended to non-commercial businesses?
§ Lord StrathclydeMy Lords, I am grateful to the noble and learned Lord for putting his suggestion forward. He may like to know that the charities and voluntary sector task force is currently considering whether there should be an extension of compliance cost assessment to those bodies. That could well include the kinds of bodies that the noble and learned Lord referred to.
§ Lord HaskelMy Lords, at what stage are these business compliance cost assessments made? Are the Government prepared to withdraw a Bill if the assessment shows that the increased cost is too great for industry to bear?
§ Lord StrathclydeMy Lords, in bringing forward legislation various departments work closely with businesses and their representative organisations to obtain as fair an assessment as possible of the likely cost to business. I should emphasise that the matter we are discussing constitutes the Government's best possible assessments of the likely costs to business, and we believe the assessments are correct.
Lord Bruce of DoningtonMy Lords, will the noble Lord assist the House a little further by publishing a detailed memorandum showing, as nearly as possible, the principles upon which these assessments are made, and also the methods used in their calculation, checking and verification before the explanatory memorandum appears?
§ Lord StrathclydeMy Lords, I am glad to inform the noble Lord that a document has been published under the deregulation initiative entitled Checking the Cost to Business. A Guide to Compliance Cost Assessment. I am told that this document is in the Library of the House, but I shall check to make sure that it is.
§ Lord StrathclydeMy Lords, I do not know the cost of the document, but it is not thick and I do not suppose it costs much.
§ Lord Williams of ElvelMy Lords, if the document is not very thick perhaps the noble Lord will explain its contents a little further. Further to the question of my noble friend Lord Bruce of Donington, will the Minister undertake that the business compliance cost assessrnent will be properly established by a privatised firm arid perhaps indeed audited by a serious firm of accountants?
§ Lord StrathclydeMy Lords, these are of course early days as regards the compliance cost assessment. There is no reason why we should not improve on the system in the future, perhaps in the way the noble Lord has suggested.
§ Lord ShepherdMy Lords, presumably the matter that the noble and learned Lord, Lord Simon of Glaisdale, has raised is concerned with draft Bills of primary legislation. Will the Government consider having the same sort of criteria in regard to statutory instruments because it is often within statutory instruments that the real costs of changes can apply?
§ Lord StrathclydeMy Lords, the noble Lord is absolutely correct. Although the Question refers to primary legislation, it is also pertinent to secondary legislation, and indeed to legislation that emanates from the European Community which has a likely impact on business.
§ Lord McIntosh of HaringeyMy Lords, has the Minister observed that it is only the Members of the Labour Party in your Lordships' House who have the interests of the business community at heart?
§ Lord StrathclydeMy Lords, I know that everyone does not entirely share the confidence that the noble Lord has in his own party and its beliefs as regards small businesses. My noble friends behind me have confidence in this Government.