EU slow to unravel red tape, says UK business leaders

Press Release

For immediate release

The European Commission is dragging its feet over its commitment to lessen red tape, a new report out today claims. Despite the Commission's Better Regulation Action Plan of 2002 the regulatory burden on the business community is easing far too slowly, the report by the Institute of Directors (IoD) asserts.

A key element of the Action Plan was to produce an impact assessment on all new policy initiatives out of Brussels. Of the 42 such policies announced in 2003, fewer than 50 per cent have so far been assessed for their red tape consequences.

James Walsh, European Adviser at the IoD, said:

"Clearly this is not an encouraging performance, although it does indicate some progress from a standing start. We are concerned that having made a commitment to the principles of better regulation, Commission officials may feel that they have ticked the box and can now move on to other projects."

The IoD's judgement comes in the latest edition of RegAlert - a quarterly publication monitoring the red tape burdens on UK businesses.

The first issue of 2004 also reviews the recent World Bank survey of regulatory burdens in over 130 countries. The survey, which analysed the burdens involved in starting up a business, encouragingly placed the UK in the top ten. However, the UK still lagged behind some of its major competitors.

James Walsh, said:

"The study found that it takes 18 days to start a business in the UK, compared with 4 days in Denmark, 11 in the Netherlands and just 2 in Australia. The UK must keep striving to reduce the red tape burden which will ultimately pay dividends in fostering greater entrepreneurial activity."

Ends

22.1.04 No.229

Contact Points:

Richard Taylor, Press Officer, tel. 020 7451 3264

Mobile and out of hours. 07721 734886

David Marshall, Director of Public Affairs, tel: 020 7451 3263

mobile and out of hours: 07764 883420

Email. press@iod.com
Web. www.iod.com

Notes to editors

1. The IoD (Institute of Directors), founded by Royal Charter in 1903, is a non-party political organisation with upwards of 54,000 members in the United Kingdom. Membership includes directors from right across the business spectrum - from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.

2. The IoD offers a wide range of business services which include business centre facilities (including six regional centres), conferences, networking events, issues-led guides and literature as well as information services and free access to a comprehensive business library and enquiry service. The IoD places great emphasis on director development and has established a certified qualification for directors - Chartered Director - as well as running specific board-level and director-level training and individual career mentoring programmes.

3. In addition, the IoD provides an effective voice to represent the interests of its members to government and key opinion-formers at the highest levels. These include ministers, constituency MPs, Select Committee members and senior civil servants. IoD policies and views are actively promoted to the national, regional and trade media.

4. For further information, visit our website: www.iod.com

5. Copies of RegAlert are available from the IoD Press Office on 020 7451 3264;

6. Details of the World Bank survey, Doing Business in 2004: Understanding Regulation, can be found on www.worldbank.org