Legislative and Regulatory Reform (Regulatory Functions) Order 2007

I thank both noble Lords for their useful and helpful contributions to the debate, and particularly for their support for the order and the code. I am especially delighted to have pleased the noble Lord, Lord Razzall, so much on sunset clauses. He and I had a brief exchange in the House yesterday on this subject, and I seem to have satisfied him within 24 hours. Both noble Lords quite rightly spoke in general terms about regulation, and it is true that over-regulation has affected not only this Government, but all Governments which have gone before them. Indeed, it was noticeable in the House yesterday how those who had had senior roles in previous Governments of a different political persuasion nodded vigorously when the point was made that this is a difficult issue for the Government. It always will be so in a civilised society, because there is a need for regulation to protect consumers and employees. It is vital that that regulation is not overburdening, is not too costly and is worth its weight. As is clear, the Government are determined to reduce the level of regulation where they can. They need to bring better regulation to the fore. We are determined to do that. This code is just one part of delivering the Hampton agenda and the wider regulatory reform agenda. For example, we will shortly be publishing the simplification plans for the second year, which capture all the elements of the Government’s agenda to effect real change. As the noble Lord, Lord Hodgson, said, words are easy here, but he is looking for action; and it is action that we are looking for too. That action includes simplification plans to reduce the administrative burdens of regulation for businesses, and the Government have set a target of 25 per cent. In the public and business sectors, the Government have set a target for the reduction of bureaucracy at 30 per cent. We mean to carry that out. The points that both noble Lords have made about regulation are well taken. The noble Lord, Lord Hodgson, made a detailed point about devolution. The Act defines much of this. We do not have the power in the order to apply the code to devolved matters, so I am afraid that the answer to his questions is ““Yes””. The article quoted is a repeat of Section 24(3) of the 2006 Act. I hope that he will be pleased to hear that we are seeking agreement through other means with the devolved Administrations to do exactly what he says. For example, we have just agreed with the Northern Ireland Administration that they will adopt the code voluntarily, because they see the benefits for their economy and businesses. Wales is similarly minded to adopt the code voluntarily, and we are in discussion with the Scottish authorities. I cannot put it higher than that. I hope that that goes some way to satisfy the noble Lord that we take his point about the need to have common codes, if we can, across the devolved Administrations and England. I am delighted that the noble Lord, Lord Hodgson, did not ask me details about either the Peddlers Act or the Hypnotism Act. Of course I would have been in a position to answer all his questions if he had wanted to ask about those Acts. I do not claim that merely because the name of the new department includes the words ““regulatory reform”” that that in itself is anywhere near a solution to the problems that have been raised today, but I think that it is just a sign or symbol of the importance that the Government place on the issue. I know that we can be sure that both parties opposite will keep us to the mark on the issue. The Merits Committee, referred to by the noble Lord, Lord Hodgson, was fairly favourable towards this code and it liked the way that it was written. I emphasise that the overarching aim of these instruments is to ensure that regulators work to minimise burdens and enforce regulations in a risk-based, targeted and proportionate way. We can effectively protect our environment, reduce accidents, protect workers or promote a competitive, efficient economy only if we have appropriate, good-quality regulation that is proportionately and flexibly enforced. We believe that this approach will bring real benefits to many groups: first to regulators because they can target their resources more effectively, to honest and compliant businesses because the costs to them of regulatory enforcement will fall, to society in general because the rogue operators—and they do exist—will be more effectively targeted and tackled, and to the economy in general, because removing burdens from businesses will enable the UK to retain its competitive edge in a globalised economy. Hopefully, the approval of this code will be one of the weapons that we use to reduce the burden of regulation in this country. On Question, Motion agreed to.