§ Mr. Jim CunninghamTo ask the Secretary of State for Trade and Industry what assessment he has made of the impact of the Employment Relations Act 1999 on the working of the entertainment industry. [101087]
§ Mr. Alan JohnsonNo regulatory proposal which has an impact on businesses, charities or voluntary bodies is considered by the Government without a thorough assessment of the risks, costs and benefits, a clear analysis of who will be affected and an explanation of why non-regulatory action would be insufficient. These effects are examined in Regulatory Impact Assessments (RIAs), which are published with legislative proposals.
The RIA which accompanied the Employment Relations Bill calculated a total recurring annual compliance cost to business of £60 million. No figures were prepared for individual sectors such as the entertainment industry. The Act's impact on an individual 468W sector will depend on the scope of existing provision in that sector, whether this provision exceeds the statutory minimum in the Act, and the extent to which individuals take up their rights. However, views were received on the legislation from both management and unions in the entertainment sector.
The compliance costs need to be set against the benefits which the Act is expected to bring, contributing to improvements in employment relations across the economy, stimulating a more co-operative approach and thus contributing to enhanced economic performance, and helping people achieve a better balance between work and family life, with wider long term social benefits.