Scottish business regulation changes on the way

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Economy
Written by Gary Howes   
Monday, 04 August 2008

Report calls for Scottish govt to bypass Westminster when dealing with EU.

 The Cabinet Secretary for Finance and Sustainable Growth John Swinney welcomed the first report of the Regulatory Review Group - which was produced in partnership with the Scottish Government.

It is hoped the report would signal the start of a new, more productive approach to regulation, "that will see vastly improved co-operation between business and government," says Swinney.

What does the report say - key aspects:

Government and business should move to a way of creating and changing regulation which is a true partnership between both parties.
    
A new shorter and simpler Business Impact Assessment should be introduced.

Each Government Department and regulator that introduces or enacts legislation affecting business has a group of businesses that it uses to 'road test' all relevant legislative literature and forms prior to implementation.

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 Department.
    
It has been the opinion of some Scottish ministers that there has been, for too long a period, a situation where government regulators and businesses have been pitched against each other.

In a time of global economic uncertainty it is hoped that new regulatory system would deliver the kind of competitive environment which will allow business to grow.

Swinney says that, "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.

The report also calls on Westminster to pay greater attention to Scotland's circumstances when framing regulations. 

Progress may not be easy

The chair of the Regulatory Review Group, Professor Russel Griggs, however warned that there would need to be substantial and genuine cultural shifts across all sectors affected by the report.

Griggs says that, "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.'

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