§ Lord Tebbitasked Her Majesty's Government:
What estimates they have made of the current costs to (a) the United Kingdom economy and (b) that of the European Community, of compliance with regulations arising from EC directives; and
What estimates they have made of the current economic benefits arising in (a) the United Kingdom economy and (b) that of the European Community from compliance with regulations deriving from EC directives.
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord) Strathclyde)The Government attach great importance to EC legislative proposals being subject to analysis of costs and benefits at various stages of formulation and implementation, and welcome undertakings given by the European Commission at the Edinburgh and Copenhagen European Council meetings to make greater use of such analysis.
Some EC directives are already subject to an analysis of costs and benefits within the European Community and, in the course of implementation, within the United Kingdom.
The Government have produced numerous assessments of the costs resulting for UK business from compliance with regulations arising from EC directives. Information about compliance costs is provided in explanatory memoranda in the case of proposed EC measures submitted to Parliament for scrutiny, and when UK legislation is put forward to implement EC directives. The European Commission produces, assessments of the impact of proposed measures on businesses in the European Community. Aggregate figures for costs and benefits of compliance with EC' directives within the UK and the European Community are not available.
The Cecchini Report, 1992 the European Challenge—the benefits of a single market, recognised that the failure to achieve a single market within the European Community had been costing European industry millions in unnecessary costs and lost opportunities. That report estimated that the establishment of a Single Market with a market base of over 320 million people would yield significant benefits derived from economies of scale, improved business opportunities and competi-tiveness, greater consumer choice, lower prices and wider opportunity for job creation. The net economic gain, once the Single Market was fully operational and 95WA industry had had time to adjust, was estimated to be in the order of ECU 200 billion. The Government will continue to press for evaluation of the costs and benefits of EC directives, within the United Kingdom and European Community, and for new measures and existing measures after a period of experience of legislation being in force.