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Brookson

'Red tape day' could intensify small firms' misery
by Richard Powell at 18:56 17/10/02 (News on Business)
A Government proposal for a national 'Red Tape Day', when all regulations would be implemented, could do more harm than good.
New national and EU employment laws would be implemented on a single annual date, once a quarter or every six months under the proposed scheme.

The initiative was drawn up after the Better Regulation Task Force warned that small companies were unable to cope with the high volume of regulation being introduced throughout the year, in its last report.

The Task Force showed 10 employment directives had been introduced over the last two years.

However, pinning regulation down to a single date could increase the costs to business because Brussels, which dictates 40 per cent of new UK employment law, intends its directives to be introduced on set dates.

Alan Johnson, Minister for Employment, said: "Better regulation is a real priority for us and something we are actively addressing, but we want to consult to ensure we don't solve one problem only to create another."

John Cridland, CBI Deputy Director-General, described the move as "an attractive idea bedevilled with practical difficulties".

He said: "We expect companies will be attracted by the idea of predictable dates, but they may not thank the Government for having to do four things on the same day. They may also be frustrated by how to make EU regulations fit with this, given that much employment laws emanates from Brussels."

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Richard Powell, © Shout99.com 2002

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'Red tape day' could intensify... Richard Powell - 17/10
    They're joking surely?!?!? realist - 17/10

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