I am pleased to be here this afternoon to launch what I believe are two really important documents for the Irish Public Service. They come as the result of commitments which the Government made, in January of last year, in the context of the White Paper “Regulating Better”. That Paper set out a programme of action across a wide range of areas. For example, as many of you will be aware, we promised to repeal redundant legislation. The Statute Law Revision (Pre-1922) Bill – which will repeal more than 200 such Acts - has now passed all stages in the Seanad and will be taken through the final Dáil stages in the Autumn.
I am pleased, today, to be marking our further delivery on the commitments in the White Paper.
Consistent Policy and New Approaches
We are all well aware of the competitive pressures which we face. We know about the economic, social and infrastructural factors, which determine our competitiveness. We have followed consistent policies of economic and budgetary management and we have benefited from the consistent policy framework which Social Partnership provides. We have many reports which have set out the growing convergence among States and businesses in terms of their access to technology, to capital and to other factors of competitiveness. It is as difficult for States as it is for individual enterprises to identify a basis for sustainable competitive advantage; and yet, I believe through our active search for new ideas and approaches, we have identified a number of key areas for our attention.
We know the benefits that investing in our people have brought to Ireland as a society and an economy. The growth in incomes and the workforce, and the improvement in the quality of people’s working lives, demonstrates this clearly for us. However, the Government have tried to move the debate on, to focus attention on how we recruit, promote, deploy, train and motivate people in the workplace. We have also strongly advocated inclusion and diversity.
We also know the urgency with which we must pursue the development of our physical infrastructure. Despite the progress we are making, we need to move beyond looking at just the physical infrastructure to look at our regulatory infrastructure. This includes a range of institutions – from Government Departments, Offices and Agencies to an increasing number of regulators.
It also includes the enormous body of rules and regulations, which originate at international, European and domestic level. And it is this area of the regulatory environment that we are focusing on today.
I think we have been lucky that in Ireland the debate about regulatory reform has not narrowed into a simplistic discussion about deregulation or liberalisation or privatisation. We have taken a broad view of regulatory reform, one that aims for better governance – through simpler rules and through greater participation and transparency in the formation of rules and regulations. We are aiming for a better Public Service – one that provides improved analysis and evidence-based approaches by public bodies, leading to better and more timely advice to Government. Thirdly, we are aiming for a better business environment – resulting from lighter regulatory approaches and administrative burdens on enterprise.
Of course, all of these ambitions sound very well but we need to take practical steps to realise them. And today is about offering tools to the Public Service to achieve these.
Regulatory Impact Assessment
For too long, producer interests have tended to shape the regulatory agenda – or at least, that is what observers such as the OECD have told us. We need the citizen and the citizen as consumer, more firmly at the centre of policy making. This is why Regulatory Impact Assessment (RIA) is so important.
In making its decisions to legislate, the Government needs a clear justification of the case for intervening in social and economic systems. Government needs a more systematic approach to looking at alternatives to regulation such as co-regulation or using taxes, charges, grants, fines or subsidies to achieve the desired goal. If we are to regulate, we need to have hard evidence in terms of the likely burden of compliance on the citizen and business. Furthermore, the burden of enforcement on the Exchequer, in terms of inspectorates, audits, prosecutions and so on, can be considerable. Therefore, a clearer understanding in advance of legislative decisions being taken can avoid surprises or disputes about resources afterwards. We must be able to screen out unintended impacts and we must have a clear account as to who was consulted and what they said.
The business community have been most vocal in calling for regulatory impact assessment, essentially, because of their concerns as to business costs. However, the model published today is more comprehensive. It aims to promote the quantification of impacts on society, on marginalised groups, on consumers and the environmental costs and not just the compliance cost to business.
Two years ago, the Government decided to introduce Regulatory Impact Assessment. On foot of that decision, a model was developed and piloted in five Offices and Departments. Today’s Report draws the lessons from those pilots and outlines the definitive model of Regulatory Impact Assessment, which the Government has decided should be applied to legislative and regulatory proposals.
It is probably right at this point that I should thank you, Chairman, and your Department and the other four Departments and Offices who took part in this pilot. I think it reflects a progressive approach on the part of your organisations. Collectively you have made a contribution to the corporate effort to modernise the Civil and Public Service.
I do not intend going into the details of the RIA model, as I know that Mary Clare O’Sullivan from my Department will do so shortly. However, the Government has decided that regulatory and legislative proposals coming to the Cabinet table should be the subject of a screening RIA; and, where that screening process highlights potential major costs or other significant impacts, a more detailed full impact assessment will be required.
There are many demands for the screening or proofing of policy whether or not that policy is to be expressed through legislation. It is easy to sign-up to such proofing but difficult to act on the commitment. By having a clear methodology and by embedding the procedure in the Cabinet Handbook, it will be much easier for policy makers to implement impact assessment.
A key point, which I must raise, is the need for regulation. It is entirely right that markets or economic or social systems should be regulated. One only has to think of recent problems in the construction area to see the value of regulation and the need for proper enforcement.
Accordingly, I would argue that regulation is essential, even though it has costs for Government, business and the consumer. It is essential to prevent market failures, to ensure the health and welfare of the citizen, the worker, the consumer and of business itself. The Government’s approach, in line with the six principles set out in the White Paper, is simply that we should demonstrate that regulation is necessary, that it is proportionate and that it has been developed in a transparent manner. Finally, we need to revisit legislation and regulation to ensure it is still achieving its intended purpose.
Guidelines on Consultation
The second document which I am launching today entitled - “Reaching Out – Guidelines on Consultation for Public Sector Bodies” - is designed to complement the operation of Regulatory Impact Assessments. As I have indicated, when formulating proposals for regulation which are likely to have significant impacts, we need to have an understanding of the views of all the key stakeholders. Today’s Guidelines underscore for Public Servants the importance of consultation and offer guidance on the design of consultation documents and events. They provide advice on best practice on the inclusion of groups who may not be organised enough to take up the offer of consultation or who, in fact, experience marginalisation in society and consequently find interacting with Government a challenge.
I understand that across Government, we already engage in a wide range of consultation exercises. However, I believe that it is important that we maximise the benefit of consulting business and the citizen. I think today’s guidelines will help bring that about.
These are, of course, guidelines that I am launching today – we did not want to introduce a set of rigid rules on consultation (we would have to have done an RIA on that!). We have to recognise the diverse range of organisations and subject matters involved in consultation and the statutory obligations in this regard with which many bodies already comply. That said, I believe that the adoption of a consistent and transparent approach to consultation will enrich public governance; it will assist the public service in its key role in contributing to policy formulation; and it will enhance the regulatory environment in which business must operate.
Access to shaping how law is made is at the heart of the democratic process. At a time when we hear daily about the widening disconnect between the people and the political process, this initiative marks an interesting and, I hope, fruitful way forward in engaging with the public.
The Challenge of Reform
I think regulatory reform and enhanced consultation can be difficult activities to promote. Anything that forces politicians and officials to leave their area of expertise or “comfort zone” and to take a more holistic or “whole of Government” approach to issues is clearly challenging. Furthermore, regulatory reform necessarily involves upsetting the status quo. It causes a level of discomfort to the existing players, whether they are professional people, trade unions, large private firms or semi-state companies. But we must recognise that and press ahead in the public interest.
This is the challenge, which the public and civil society and the Social Partners increasingly present to Government.
Two things will be necessary for the documents I am launching today to have an impact. Firstly, we will need to provide specific training and guidance for public servants in analytical approaches and consultation techniques. This will ensure that robust impact analysis takes place. I am aware that there are already a number of initiatives, including Masters degree programmes, which will support Departments and Offices in the development of the relevant skill sets. Secondly, through wide distribution of today’s publications, I am hoping to generate a demand amongst the public, amongst enterprises and amongst the Social Partners for the conduct of assessments and for more systematic consultation. I hope I will not be disappointed.
A New dialogue with Enterprise – Business Regulation Forum
On foot of the publication last year of the White Paper – Regulating Better – the Government established a Better Regulation Group chaired by Philip Kelly of my Department. It is comprised of key Departments, Sectoral Regulators, the Director of Consumer Affairs and the Competition Authority. The Group is overseeing the implementation of the Action Plan contained in the White Paper.
Today’s publications have been developed under its guidance and it has a substantial work programme going forward. This includes looking at areas such as appeals and penalties and trying to map the regulatory landscape.
This latter exercise will involve trying to describe the number of regulators and the reporting and governance structures that surround them. I believe this Group has an important role in promoting the regulatory agenda across the public service. It provides a valuable network for policy makers and regulators to look at issues of common concern. It also provides a mechanism for Ireland to contribute to the regulatory agenda, which is of growing importance at the level of the European Union.
I announced last April however, that I thought there was a need to deepen the dialogue between the business community and the Government in relation to the issues of regulation and the administrative costs on business that flow from it. I am pleased to say that following discussions with my colleague, the Minister for Enterprise, Trade and Employment, Micheál Martin T.D., that a dedicated business forum will be established shortly under his aegis. I would like to thank you, Chairman, for your personal contribution in developing this proposal.
Following discussion with Minister Martin we have agreed that the new Business Regulation Group will work in parallel to the existing Better Regulation Group. This new Group will examine specific existing codes, or sectoral areas of regulation applying to business, on a problem-solving basis. Outcomes of such reviews could include recommendations to repeal or amend regulations, to clarify obligations and define required standards.
The Group will be composed of senior members drawn from the public sector and from business. Government Departments, Agencies and Regulators will be invited to participate in the work of this Group, as required. It will be independently chaired, have a dedicated secretariat and meet at regular intervals as determined by its agenda. The Group will report to the Minister for Enterprise, Trade and Employment - and, through him to Government. It will report on particular issues and on problems arising from outdated or inefficient or disproportionate regulation in terms of the burdens imposed on business, when viewed in the light of best practice. The Group will also advise the Minister on regulatory issues as they impact on business and competitiveness. The recommendations or conclusions of the Group should feed into the Better Regulation Group and to the appropriate Departments, Offices or Regulators. The Minister for Enterprise, Trade and Employment will be developing more detailed proposals for this new Group and I expect that it will be operational by end-September.
Conclusion
Finally, I would like to thank all those involved in the work that led to today’s publications, including Sara White who chaired the Group on Consultation. I would also like to thank Turlough O’Sullivan, Director General, IBEC; Secretary General Niall Callan; and David Begg, General Secretary, ICTU, for their participation this afternoon and for their support of this work.
Thank you.
ENDS
Reaching Out - Guidelines on Consultation for Public Sector Bodies
Report on the Introduction of Regulatory Impact Analysis