Deregulation Bill

Julian Smith Excerpts

Monday 3rd February 2014 Commons Chamber

[Mr Letwin]

I very well know the phenomenon. In fact in the case I was talking about, I think it has taken about 25 years, so I know what my hon. Friend is talking about.

[Julian Smith (Skipton and Ripon) (Con)]

Will that guidance also refer to the issue of green lanes which has come up among my constituents in north Yorkshire? I would be interested to know whether my right hon. Friend has been lobbied or representations have been made by those involved in that campaign.

[Mr Letwin]

Well, to say that I have been lobbied about these matters is mild understatement. I think it would be sensible for my hon. Friend and me to have a detailed discussion of clauses 14, 16 and 17. I will just mention clause 17 for a moment, which authorises the construction of gates on public ways. If my hon. Friend pauses to consider the materiality of that change, he will understand just how important this is.

Clause 29 is one of the favourites of the Communities Secretary. It decriminalises the penalties for misfeasance with household waste. It turns them into civil penalties rather than criminal penalties, which is long overdue.

Clause 33 is the result of lobbying by Members on both sides of the House. It will fulfil a commitment by the Chancellor by enabling child trust funds to be converted into junior ISAs. That is another excellent move.

Finally, clause 43 sums up the whole Bill, in my view. It deals with the exhibition of films in village halls. I am talking not about movies involving ghastly violence and huge amounts of sexual activity, which are classed as X-rated. As we can see from the clause, film certificates will continue to apply. At the moment, however, if someone wants to show a Charlie Chaplin film, they have to obtain a licence. That is astonishing, and there is not the slightest reason for it. I know that Opposition Members have no concern with village halls or village life, but perhaps they will recognise that this is also happening in community halls throughout the urban centres of our country. It would be nice if people could show films in those places without a licence, and I am glad to say that liberty will reign in this respect and that clause 43 will enable that to happen.

I hope that I have demonstrated that, while the Bill represents only a tiny fraction of this Government’s vast and enormously successful efforts to have a period of a Parliament for the first time in this country’s history in which we have reduced rather than increased the burden of domestic regulation, it is nevertheless a significant step forward. I am sure that it will be widely welcomed in all parts of the House, except among those on the far left who want to see this country being further and further regulated.

--- Later in debate ---

[Chi Onwurah]

There are some measures in this rag, tag hotch-potch of a Bill that are welcome and that we do not oppose. What we oppose is the approach of this Government to a cost of living crisis, which is to attack the rights of ordinary working people.

By my count, the 69 clauses and 17 schedules cover at least 12 Whitehall Departments. As I have said, although there are many parts of the Bill that we support or do not oppose, there are some very disturbing proposals hidden beneath the knitting yarn, which we will vigorously oppose. There are fresh attacks on employment rights, with the removal of yet more powers from employment tribunals. Those are measures that the Government’s own impact assessment claims will have a negligible effect on businesses or even cost them money. We will not support any new attacks on working people.

[Julian Smith]

Does the hon. Lady not agree that the cumulative effect of the Government’s reforms of small business red tape and regulation have made it easier for those businesses to create jobs and growth and provide the results that we all want, which is our constituents in work?

[Chi Onwurah]

We all know that small businesses need a cut in business rates, as we have proposed, and then a freeze. We will also freeze their energy bills, which will save an average of £1,800 a year. At the same time, we would change the economy so that it delivers secure employment, which would benefit businesses large and small.

We want this Government to acknowledge, once and for all, that it was not working people’s job security that caused the global financial crash and that preventing employers from discriminating against pregnant women is not the root cause of the cost of living crisis. This Government are so out of touch that they not only do not understand the challenge they face—the need for an economy that works for all, delivering good, well-paid jobs—but fail to understand the real solutions to the problems that they do see.

--- Later in debate ---

[Chi Onwurah]

Thank you, Madam Deputy Speaker.

I hope that the new employees will succeed in making the Minister understand that we do not build an economy that works for working people by attacking their rights.

[Julian Smith]

Does the hon. Lady welcome the shared parental leave that the Government have introduced as part of trying to make things easier for couples who want to work and share parental leave during the course of their professional life?

[Chi Onwurah]

The Labour Government did more to support working families and working parents than any Government before, and of course we support that measure.

I shall try to make progress and speak to my experience with business. Before entering the House, I worked for many years in telecoms in the private sector in the United States, the United Kingdom, France, Nigeria and many other countries around the world; I worked in companies large and small. I then worked for the industry regulator in this country, Ofcom, for six years, so I have seen regulation from many different viewpoints, and I am familiar with the impact that it can have on businesses of all sizes. I recognise the burden that it can represent, particularly on small businesses.

The Opposition believe that Government must seek to reduce unnecessary regulation at every opportunity, but unfortunately, this Government’s debate on regulation is stale and simplistic. Smart regulation underpins fair markets, and can level the playing field for small firms and new entrants—the very people and businesses that create new jobs and prosperity. Smart regulation saves lives. It is a matter of great pride for all of us, I hope, that the 2012 Olympic infrastructure was built without the loss of one life. We can certainly be sure that regulation played a part in that. The men and women working on those construction sites know the value of having clear health and safety laws in place, and I only wish that were the case for Government Members.

Smart regulation can help to drive innovation and growth. Labour’s zero carbon policy helped to make this country a world leader in low-carbon technology and architecture. Yes, regulation—

--- Later in debate ---

[Chi Onwurah]

I thank the Minister for his intervention, which, I regret to say, illustrates that this Government still do not understand the driving forces behind the global financial crisis.

Although we want regulators to have regard to the impact of their regulations, we do not agree that one of their primary objectives should be to support or promote short-term growth. There is a list of regulators. Should short-term growth be a priority for the human rights regulator? Either the Bill should be amended or the impact of the proposals should be clarified, so as to ensure that we do not find ourselves in a situation whereby all the regulators seek to promote short-term growth spurts, regardless of the consequences elsewhere. I hope that explanation has offered clarification, at least to a certain extent, and that Government Members will find it easy to discuss.

We have concerns about other parts of the Bill. Housing is a critical part of the cost of living crisis for families up and down the country, so should there not be a coherent, long-term approach, rather than ad hoc tinkering? Will not reducing the right-to-buy qualifying time hamper the ability of councils to build more homes at a time when they are needed more than ever? We will certainly seek proof that that will not happen. We will also seek clarification and reassurances on some of the measures affecting transport, licensing and local authorities, among others.

The decriminalisation of waste will, apparently, reduce the regulatory burden on households, but it should be remembered that in 1991 a then Tory Minister said something similar about the decriminalisation of parking offences. I doubt that many car owners feel that parking is less of a burden as a result, but it is certainly the case that it opened up new avenues of revenue for hard-pressed councils.

The proposals on justice are interesting. I imagine that the Minister without Portfolio, the right hon. and learned Member for Rushcliffe (Mr Clarke), approached the Lord Chancellor, who had just taken his job, and asked him what regulations he would like to get rid of, and that he came back with the idea of stripping away safeguards on the seizure of evidence from journalists, although we hear that that was not the intention, and a proposal to remove parliamentary scrutiny when he wants to close prisons. In answer to one of my parliamentary questions, the Ministry of Justice has revealed that, since 2010, it has yet to repeal any regulations, but has introduced eight. If those are the sorts of ideas that it has come up with, perhaps it is a good thing that we have been spared any deregulation by the Ministry of Justice during the past three and a half years.

Some measures in the Bill are welcome. Although those affecting businesses will have only a small impact on a small number of them, they are welcome, as are those on child trust funds. The measures on rights of way are also good news, provided that the full package agreed with the stakeholder working group is passed.

I pay tribute to the hard work of the Joint Committee on the draft Deregulation Bill, chaired by my noble Friend Lord Rooker. Although it was not given the time it felt appropriate, thanks to the Joint Committee the Bill is in a slightly better state than it was last July, but it is fair to say that the Government have not responded to many of its criticisms.

It is also fair to say that the overall reaction to the Bill has been underwhelming—lukewarm at best. Ministers are delighted with it, but reading the Bill, I realised that that is because it seems to be about removing burdens as much on Ministers as on business. By my count, half the proposals in the Bill will take away burdens from Ministers and the Government, while less than half will remove them from business. This is more doublespeak: deregulation is apparently about deregulating Whitehall, not small business. For some reason, that reminds me of the Localism Act 2011, which has somehow resulted in hundreds of powers being localised in Whitehall.

That explains why the expected impact of the Bill is rather low, and underlines why it is a rather simplistic tool for a multifaceted challenge. All Governments say that they want to reduce regulation—I am sure that every Byzantine emperor came to power on the promise of reduced regulation—but getting regulation right is much more about working behind the scenes with business and interested parties than about bluster and press releases.

[Julian Smith]

Will the hon. Lady give way?

[Chi Onwurah]

I am just finishing.

Once again, this Government’s rhetoric extends far beyond their reach. The Opposition will seek to remove or amend the iniquitous clauses if the Bill is committed, and we believe that the remaining clauses will have a very limited, if welcome, impact.

--- Later in debate ---

[David Rutley]

Absolutely.

The duty to pay employer’s national insurance contributions for people under 21 will be abolished completely. Last year’s autumn statement included a cap on the increase in business rates and a rolling programme of small business rate relief that will enable a £1,000 reduction in business rates for shops and retail premises, which will help to safeguard our high streets.

The Bill is an integral part of the Government’s long-term approach on deregulation. As the Minister said, the red tape challenge has highlighted just how much regulation there is and demonstrated the Government’s willingness—their desire even—to drain the swamp of existing regulation. The Minister kindly referred to that as a lake, but I think that it is more of a swamp.

[Julian Smith]

I fully support my hon. Friend’s comments. Does he agree that the Minister for Government Policy, the Minister for the Cabinet Office and several other Government Members have worked hard for many years on this specialist subject to ensure that we reduce regulation on business?

[David Rutley]

I agree with my hon. Friend completely. There has been great determination not only to reduce the deficit, but to build a plan for growth. Deregulation is a fundamental part of that plan, so I praise the work of the Minister for Government Policy and other Ministers who have made invaluable contributions.

The Government have turned their attention to not only the stock of regulations, but the flow of new regulations—the river that is running into the swamp that we are looking to drain. Their progress has been so good that their one in, one out approach has become a one in, two out rule. Ministers must remove twice the cost of any new regulation that they introduce. As we heard from my hon. Friend the Member for Hertford and Stortford (Mr Prisk), who also made an invaluable contribution in this area as a Minister, that is a culture change that will keep us on the path to more jobs and increased growth.

I welcome the fact that hundreds of regulations have been improved, modified or removed by the Government, and that they are being more ambitious still in the Bill by aiming to improve or sweep away thousands more. As the Prime Minister said, this will be

“the first government in modern history that at the end of its parliamentary term has less regulation in place than there was at the beginning.”

That must be an important priority. With the eurozone in a sluggish period of economic growth and an in/out referendum on the cards in the UK following a Conservative victory at the next election, the Bill will hopefully not only help the UK to tackle its own challenges, but provide the impetus for serious deregulatory reform in Europe.

--- Later in debate ---

[David Rutley]

I thank the Minister for that reply. I am sure that the hon. Member—and friend—for Bassetlaw (John Mann) and I will enjoy further conversations about that subject outside the Chamber.

The Bill will help to provide further impetus for change in not only the UK, but Europe. Fortunately, there is increasing evidence that, in contrast to the abject failure of the French socialist approach under President Hollande, the UK’s plan A can only help to bolster the pragmatic supply-side reform movement that has been spurred on by the Government and by the Prime Minister’s business taskforce. It has already been embodied by Open Europe and the Fresh Start group, which I and other Government Members support. Indeed, I was honoured to help to host a round-table discussion on better regulation only last month with delegates from across the EU. The Bill will do a good deal to deregulate in the UK, but if we are also to increase the EU’s competitiveness, we need to spread the lessons of our approach across the European economy.

[Julian Smith]

I think that my hon. Friend was on the trip to Brussels when we asked the Commission whether it had removed any regulatory burdens from small businesses. The lady we were speaking to looked absolutely startled and could not remember any rule that ever been removed from business.

[David Rutley]

My hon. Friend makes an important point that further highlights something I said earlier: 72% of the cost of all regulation—that is tens of billions of pounds—that has been put on UK businesses has come from the EU. That has to change.

Churchill once said:

“If you have ten thousand regulations, you destroy all respect for the law.”

Those words from the wise are worth listening to. Of course, 10,000 regulations also destroy competitiveness, so there is an urgent need to make targeted reductions in the swathes of regulatory burdens that are preventing British citizens from getting back to work.