The Institute of Directors has today criticised the Department of Trade and Industry.

The IoD published a research paper on the department's role which claimed it is confused about its role, pursued contradictory policies and had overly ambitious objectives.

Forum Response: Institute of Directors

Richard Wilson, business policy executive at the IoD, told ePolitix.com:: "The DTI suffers from three major problems. Firstly, the role of the department is shrouded in confusion.

"The broad remit of the Department has made the pursuit of a clear, coherent and consistent strategy difficult to achieve. However, the situation has been exacerbated by the extraordinary level of political instability at the top of the Department.

"Secretaries of State come and go with the regularity of 3rd Century Roman Emperors: there have been four Secretaries of State for DTI in the last five years. This has led to frequent changes in the emphasis of policy.

"Secondly, there is a Dr Jekyl/Mr Hyde flavour to policy making at the DTI. For example, although the department aims to promote a competitive economy, since 1997 it has significantly increased the regulatory burden on businesses. The cost of employment regulations alone on business amounts to £5 billion per annum.

"Thirdly, the Treasury has burdened the DTI with targets and objectives of almost Herculean proportions. For instance, the department is required to reduce the productivity gap between the UK and France, Germany, Japan and the USA over the course of the economic cycle; increase the overall productivity of small firms; and improve the economic performance of all the English regions.

"The DTI lacks both the information and resources necessary to enable it to achieve these objectives with any confidence."

Forum Response: Business Services Association

Norman Rose, director general of the Business Services Association, told ePolitix.com: "The Institute of Directors has rightly highlighted current concerns within the business community over the role and objectives of DTI.

"The current 'super-department' cannot hope to achieve clarity of purpose, thanks to the multiplicity of roles which is expected to fulfil. It is disappointing that the recent reorganisation has increased, rather than lessened, the confusion. Few of us who work closely with the department can claim to understand the new structure, nor is information easy to obtain.

"British business needs a focussed champion, both within Whitehall and in the corridors of Brussels. The call for DTI to become a genuine Department of Enterprise is a timely one, and, if heeded, would do much to assist British business."