The Forum of Private Businesses (FPB) has dubbed the European Commission’s agenda for 2007 “disappointing from the small business perspective”.
FPB European spokesperson Martin Smith said he welcomed the EC Work Progamme to reduce “red tape” over the next 12 months, but said he was unconvinced that the agenda would make any real inroads for small businesses.
“The commitment to reducing the regulatory burden on all businesses cannot be questioned. It is stated and on the record. In fact, one could speculate that there are infinite examples of fine words about easing the regulatory burden emanating from the EC. Unfortunately, it does not seem that this commitment is shared, or perhaps fully understood, by members of the commission staff,” he said.
He said the EC would doubtless point to the fact that at 36, the number of legislative initiatives is outnumbered by the 47 simplification proposals, with 10 proposals for withdrawal of legislation on top of that.
However, he said this is misleading taken at face value as the legislative and non-legislative initiatives together outnumber the simplification initiatives. The non-legislative actions tend to lead to future legislative actions. Furthermore, those proposals to withdraw legislation will have little or no impact on small business, he said: “The instruments being withdrawn may well be obsolete, however they are not likely to have a significant impact on businesses and competitiveness, and their withdrawal should not be counted as evidence of reduction of the regulatory burden.”
The FPB said in a statement that a number of issues have been overlooked by the work programme.
“There is no suggestion that the proposal to end opt-outs from the Working Time Directive is to be withdrawn. There is no plan to withdraw the proposals on supply chain security, whose costs threaten to cripple small businesses in the transport sector for little benefit in the fight against terrorism. There is no plan to withdraw the completely unnecessary Consumer Credit Directive,” Smith said.
The FPB is also campaigning for action to address a directive, which allows VAT exemptions such as Low Value Consignment Relief (LVCR), causing significant competitive distortion in the UK. As a result of this, normally viable independent retailers are facing closure because of unfair competition from VAT-free goods supplied through the Channel Islands, it claimed.
The Forum said it wants the EC review of the internal market to address the creation of burdensome regulation, a move it thinks would be welcomed by small businesses. Smith said: “Too often, new legislation cites its legal base as the internal market, and the question must be asked: is this fresh red tape really necessary?”