A report published today argues that government and business should move towards a means of creating and changing regulation which is a true partnership between both parties.
The report, published by the Regulatory Review Group in its annual report, and produced in partnership with the Scottish Government, also argues that each Government department and regulator that introduces or enacts legislation affecting business has a group of businesses to 'road test' all relevant legislative literature and forms prior to implementation.
The report also says that the Scottish Government should have the right to make its own case directly to the EU where it feels this is necessary rather than relying upon the relevant Westminster government department.
The Cabinet Secretary for Finance and Sustainable Growth John Swinney welcomed the report. He said it would signal the start of a new, more productive approach to regulation, that will see vastly improved co-operation between business and government.
He said: “For too long regulation has pitched government, regulators and businesses against each other.
“This government simply will not allow regulation to be a battleground any longer. At a time of global economic uncertainty, it is crucial that we all work together to deliver the kind of competitive environment in which businesses can flourish.
“That means all regulation should be carefully road-tested to determine exactly how it will impact on business. That's a key recommendation of today's report and one that we are determined to take forward as a government.
“Today's report will signal a new era where we can work together with business to deliver this greatly improved, partnership approach to the regulations we introduce as a government.”
He added: “Regulation in Scotland emanates as much from Westminster and Europe as it does Holyrood, so I am particularly pleased the report recommends Westminster pays greater attention to Scotland's distinct circumstance in framing regulations.
“And I am also convinced of the need for the Scottish Government to make its own case on regulations affecting Scotland directly to the EU rather than relying on Westminster departments. That is something we will take forward at both EU and UK level.
“The Government is extremely grateful for the work done by Professor Russel Griggs and the rest of the group. They have our guarantee that we will now look at the recommendations carefully and work closely with them on how best to take forward the better regulation agenda.”
Griggs, chair of the Regulatory Review Group added: “To achieve what we believe is possible, as is set out in our Annual Report, to make Scotland the leader in regulation, in terms of its appropriateness and proportionality to all parties involved, will take a real culture shift across business, Government, and its regulators.
“We have been impressed by the desire from all sides for that change to happen as we can all see the benefits it will bring both to our economy and to the way we do things. Our next year will be focussed on making sure it does happen which will require good and sometimes strong leadership from all those with influence including the Cabinet, those leading regulators, and those leading business, because real culture change will only succeed through leadership and drive from the top.”
Welcoming today’s announcement on better regulation, the director of CBI Scotland, Iain McMillan, said: “Red tape is a very real problem for firms and one of the most significant avoidable constraints on competitiveness and business growth. The Regulatory Review Group, under the leadership of Russel Griggs, has done a fine job in developing proposals that are practical and acceptable both to business and government.
“The Cabinet Secretary’s announcement today is most welcome, reflects much of what CBI Scotland wanted to hear and is a testament to government and business working together. It is crucial that these reforms apply not only to government inspired regulation but also to legislation emanating from parliamentary committees and backbench members bills.”
A full copy of the report is available here.
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