New European laws to face cost-cutting measures

31 March 2005 #SMMT News

The motor industry has welcomed moves to cut red tape and streamline the introduction of new European laws.

In a report published last week headed Regulation – Less is More, the Better Regulation Task Force called for the UK government to slash industry costs by cutting the administrative burden of Brussels-led regulations. It also recommended a ‘one in one out’ approach to new regulation as well as a review of costs associated with the operation of existing European rules.

The Task Force message was delivered soon after a Budget statement in which the Chancellor committed the UK to a light regulatory touch. His message also signalled an end to gold plating, the practice of making laws more onerous in the UK than that required under an EU directive. This was welcome news to the motor industry, which has long complained that increased costs associated with gold plating were making UK-based companies less competitive.

Last week the European Commission echoed the UK approach, launching its own package for better regulation under the title Less Red Tape = More Growth.

Enterprise and Industry Commissioner Gunter Verheugen said that every single one of the 900 pieces of EU law currently in the pipeline would be subject to review. If costs outweigh its economic benefits, a law would be scrapped, Verheugen promised.

Less Red Tape = More Growth

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