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Meeting of the Parliament 08 December 2011

08 Dec 2011 · S4 · Meeting of the Parliament

Item of business

Regulatory Framework

McCulloch, Margaret Lab Central Scotland Watch on SPTV

I welcome the opportunity to speak about regulation. I have a business background and so have some experience of red tape and compliance, and several weeks ago, I joined the Scottish Parliament business exchange. I am therefore mindful of the business community’s concerns about the regulatory framework in which it must operate.

From dealing with recruitment and selection to health and safety and equal opportunities, businesses must take full account of the rules and regulations that are placed before them. Excessive or uneven regulation can be a headache for small businesses, which is why it is so important that the regulatory review group has a clear and consistent approach to the issue.

Most businesses understand the need for proper regulation in the economy, but they also hope and expect that regulators will be sympathetic to their needs and the demands that they have to contend with on a day-to-day basis. Regulators have to remember that small businesses and independent firms do not have dedicated compliance functions, and the Scottish Government has to ensure that the training on compliance through business gateways is advertised and fully promoted.

Of course, we all represent a much broader constituency than the business community. Each of us, in our own way, has an understanding of the public interest and an understanding that economic growth is not the sole objective of any Government. We have duties to protect the environment, to preserve our heritage, to achieve equality and to defend the rights of workers, consumers and families across Scotland. There is some recognition in the Government’s motion of those tensions—tensions between growth and other gains—but I would argue that good, proper, effective regulation can help rather than hinder economic growth.

There is some recognition of that out there in the Scottish economy and in Scottish society. Overall, the tone of the debate about regulation is much more sedate, dignified and constructive in Scotland than elsewhere in the United Kingdom. When the previous Administration set up the regulatory review group, it tasked the group with the job not of deregulation or reregulation but of better regulation. I am glad that the review group continues to approach the issue in that way.

The Scottish Government’s economic strategy prioritises seven key sectors: the creative industries; energy and renewables; financial services; food and drink; life sciences; tourism; and Scotland’s universities. I know that the regulatory review group is independent of Government, but I suggest to the minister that it might be worth while to ask the group to look into those sectors. A timely and measured assessment of the regulation landscape in the creative industries or life sciences would allow us to address barriers to growth. It would also allow us to consider how those sectors can grow and develop in a fair, balanced and sustainable way.

We can see from its annual report that a large part of the group’s work has involved monitoring the introduction and implementation of business and regulatory impact assessments. Annex 6 of the report shows that the Scottish Government regards those assessments as mandatory unless a ministerial exemption is granted. Will the minister say how many exemptions have been granted and, in each of those cases, why? How does he differentiate between cases in which the exemption is justified and those cases in which it is not?

I turn finally to the issue of procurement. I have spoken at length in other debates about youth unemployment, skills and training, and I believe that, through community benefit clauses, we can use public procurement to regenerate communities and to help young people into work. EU rules on state aid allow the Government to intervene in certain circumstances to help disadvantaged groups, and I regard all the young people in Scotland aged between 16 and 24 who are struggling to find work as being at a disadvantage. Those who have a disability or are part of a minority are often pushed even further from the labour market.

I believe that regulation and procurement can and should drive real change in the Scottish economy. For that reason, I encourage members to support the Labour amendment.

10:18

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Meeting of the Parliament 08 December 2011

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