Deregulation

Elizabeth Truss Excerpts

Tuesday 10th January 2012 Westminster Hall

[Elizabeth Truss (South West Norfolk) (Con)]

Does my hon. Friend agree that quite often the regulations that we are discussing have a disproportionate effect on small businesses? For example, farmers in South West Norfolk who are struggling with the natural habitats directive have had to have endless meetings with the local council, Natural England and the Department for Environment, Food and Rural Affairs to sort things out, which is a huge burden on their administrative time. Moreover, quite often, large businesses, particularly in the banking and energy sectors, lobby Government and support them in introducing more regulation, because they see regulation as a barrier to entry for smaller businesses that are trying to enter those important markets.

[Dr Coffey]

My hon. Friend makes a fair point, and on the subject of energy, the energy red tape challenge will close in less than an hour, according to the Twitter feed on the red tape challenge.

I understand my hon. Friend’s point completely. There is an interesting balance to be struck in legislating for safety by introducing regulations. I agree with her that we do not want unnecessary regulations introduced to try to keep cartels or oligopolies going. Whether it is in response to the REACH—registration, evaluation, authorisation and restriction of chemicals—directive or the herbal products directive, which we are busy trying to implement at the moment in response to European laws that have been passed, there is an argument for allowing people to make their own decisions and choices, rather than having regulation decide things for them.

I also wanted to refer to my hon. Friend’s work on child care. She has done quite a lot of policy work about the cost of child care, and how costs that have been driven into the industry mean that child care becomes exceptionally expensive for parents who want to go to work, but who sometimes cannot afford to, or for whom work seems only to pay for the costs of child care. The question is rightly being asked: what is driving that cost? Looking after children of course takes skill, but it need not take a graduate degree. Over the years, we have ended up with various regulations, leading to a situation in 2009 when two police officers were told that they could not look after each other’s children for more than so many hours at a time because, as they were not registered as child minders, the activity was deemed illegal. The Government looked into the matter, but this is another example of common sense being replaced by some bright spark’s desire to ensure that children are looked after only by child minders, rather than by their parents’ friends or colleagues.

Another issue that comes up regularly is the portability of the Criminal Records Bureau check. Someone going into a school might need five different CRB checks, depending on the activity they want to do. I know that the Government are looking into such issues but, as I said at the start of my speech, I encourage them to go much further, much faster. Not only will that help their constituents, but it will free up Government time to focus on what really matters—assisting people at home and helping businesses to grow and to employ people.

The Prime Minister is reported to have said in the past few days that he is looking for Ministers to ensure that their Bills pass the U-turn test—in other words, to ensure that there are no U-turns. Some of this is about drafting simpler legislation, but a lot of it is about not trying to regulate for every possible scenario. One of the challenges that our country has been facing—this is no criticism of the people involved—is that an openness to having everything in regulation means that measures can become a lawyers’ picnic, with everything open to judicial review. The constant desire to put everything in statute is a huge challenge, because people almost cannot turn for the risk of being taken to court or to judicial review. That is not to say, of course, that people should not have recourse to action when something is patently unfair, but we all, as Members of Parliament, need to consider whether we will end up with lawyers and judges deciding what is right and wrong, rather than Parliament deciding on that through better laws.