BROWN MUST GO DUTCH ON RED TAPE - LIZ LYNNE

12.00.00am GMT Wed 22nd Mar 2006

Responding to today's budget, the Liberal Democrats have urged Gordon Brown to consider the Dutch approach to cutting red tape, a system where any new regulation can only be introduced by abolishing another.

Speaking in Brussels today, Liz Lynne, West Midlands Liberal Democrats MEP Shadow Rapporteur for the Better Regulation Report in the Employment Committee, said "The oversized and outdated DTI promised to cut the cost of regulation to business by £1 billion by 2010 but has somehow managed to do precisely the opposite and has actually increased the cost to business by £10 billion over the last year."

"The Government is far too concerned with 'gold-plating' European legislation, when their focus should be on repealing anachronistic, obsolete legislation and making use of sunset clauses."

"The Dutch approach to regulation forces ministers to think twice before introducing more red tape, and sets clear, achievable and incentivised targets for reducing the burden government imposes on business. It is time this Government gave it serious consideration."

Notes to editors:

Source: Federation of Small Business: "Lifting the barriers to growth in UK small business"

The survey of members published today notes:

"The highest level of dissatisfaction was awarded to the complexity of legislation: 55% reported dissatisfaction with this issue. Volume of legislation was found to be dissatisfactory by 53%, cost of compliance was found to be dissatisfactory by 51% and 51% reported dissatisfaction with rate of change of legislation."

Source: Better Regulation Task Force Report to Prime Minister: "Regulation - Less is More"

The report on reducing the burden red-tape places on business notes how successful the Dutch approach has been and the benefits this can provide to the UK economy as a whole:

"We recommend that the Government adopt the Dutch approach to reducing administrative burdens because it offers an outstanding return on investment for the UK - potentially an estimated £16 billion increase in GDP for an investment of some £35 million."

The Dutch approach advocated a one-in, one-out approach to legislation and notes that achievable targets of 25% per annum were set throughout departments and Government. The UK DTI is attempting to reduce our burden by 2% prior to 2010, and yet has so far failed to reduce the burden at all.

Source: British Chamber of Commerce Press Release 1st March 2005

The BCC notes:

"The cost to business of major regulations introduced since 1998 has risen to over £50 billion."

ENDS

For further information, comment or to book an interview, please telephone Liz Lynne on 003222845521(Brussels) or 077644 52725 (mobile) or the Press Officer in Stratford-Upon-Avon on 01789 262785.