Less Regulation can mean more effective regulation - Harney

The Tánaiste and Minister for Enterprise, Trade & Employment, Mary Harney, has said that less regulation very often means more effective regulation.

She was speaking at the launch of the White Paper on Regulation which, she said, underlines the Government's commitment to maintaining competitiveness in the face of increasing global competition and to ensuring that Ireland remains one of Europe's most attractive locations in which to do business.

"Despite what some prophets of doom have to say from time to time, Ireland is hugely attractive to overseas investors and continues to increase it's market share of foreign investment," said the Tánaiste.

She continued: "According to the Economic Freedom Index 2004, compiled by the Wall Street Journal and the Heritage Foundation, Ireland has one of the most pro-business environments in the world. The index reports that Ireland has retained 5^th position in the list of the world's freest economies and is 2^nd in the EU.

"Furthermore, Ireland was the only EU country to enjoy a sharp increase in FDI investment in 2003, more than doubling its inflow to almost €42 billion from €19 billion. That's according to the United Nations Conference of Trade & Development (UNCTAD) whose FDI data is regarded as among the most authoritative in the world," added the Tánaiste.

"But the evidence is there that competition from around the globe, and from Europe in particular, is increasing. Last week, Ireland lost 150 jobs to Poland in a much publicised move by European giant Phillips. So we cannot afford to be complacent. We must work at maintaining the advantage that we currently enjoy.

"Better regulation is an essential tool for maintaining and improving competitiveness.

"Better regulation means less red tape for business, improved services to the public and a greater voice for consumers.

"Better regulation supports competition which in turn enhances the range and quality of products and services, giving consumers better choice and more value.

"This Government is deeply committed to this process and the publication today of this White Paper confirms our determination to build on progress that has already been made. We need to recognise that sometimes less regulation is the way to achieve a more effective overall regime. This requires that we implement a system of impact analysis which will rigorously assess the impact of proposed regulations."

"We will build on recent developments in which we have seriously strengthened the powers and resources of the Competition Authority, developed one of the most advanced company law codes anywhere in the world and established a whole new regime of control over financial institutions with a critical consumer focus."

"The message has to be not just that Ireland is both business and investor friendly but that our regulatory regime sets the standard for the rest of the world. In that way we can confirm Ireland's position as the location of choice for overseas investors," concluded the Tánaiste.

ENDS/ETE 1182