23rd January 2023
Last week there was a (very popular) post on this blog about regulation and the supposed “bonfires” of “red tape”.
Most of the points in that post were general, but a particular point was made about the misconceived Retained EU Law (Revocation and Reform) Bill.
That Bill contains this remarkable provision as clause 1:
In other words, laws – thousands of them – will all be repealed by automatic operation of law, unless specific exceptions are made.
And nobody knows how many:
Rarely has there been an approach to legislation this daft, and it is hard to think of any legislative exercise where daftness has been on this scale.
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Of course, this causes confusion, including to business.
One may think businesses would welcome such drastic deregulation – but, in fact, businesses are far more welcoming to consistency.
In his speech today, the director general of the Confederation of British Industry addressed the problems of this Bill.
First, he did not dismiss regulatory divergence in principle:
“…I must say something about the UK’s regulatory divergence from Europe. The Government is convinced this is a major opportunity for growth. And I agree it can be too.
“But it’s a bit more complicated, than scrapping overnight many of the terms of trade we’ve used for decades.”
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So this means he is not opposed outright to what the government calls “Brexit opportunities”.
But it has to be done in a measured, case-by-case approach, and with hard realism:
“Because divergence is high-stake politics and economics.
“Often, we don’t consider the EU’s possible counterplay, and where they could outcompete us. We also need to recognise that divergence will often shrink our market size and/or add a skip-load of red tape. The party of deregulation risks simply doubling the amount we have.
“So, while it can definitely work – witness the historic success of the City of London and our rapid Covid vaccine approval – you have to run the numbers to make sure it’s not a complete own-goal.
“And it will take far more than a regulation play to make the UK win global share of global sectors.”
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He then mentioned concrete examples:
“…the Retained EU Law Bill [is] creating huge uncertainty for UK firms.
“Companies are asking will we really erode maternity and paternity regulation or health and safety standards like the General Product Safety Directive?
“Or rapidly change regulations on REACH, which governs the use of chemicals? With billions of pounds of industry costs?
“Or create the potential for firms being underinsured because it’s harder for analysts – who don’t know what laws will be retained – to effectively price risk into products?
“Do we really want to subject the public – and industry – to another round of mass confusion and disruption, just when we’re trying to exit recession?”
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The speech, however, did more than offer a critique, it also offered a contrast.
It referred to a development which I (and perhaps also you) missed just before Christmas: the appointment of Patrick Vallance and others to consider post-Brexit regulation in five particular areas – digital technology, green industries, life sciences, advanced manufacturing and the creative industries.
The speech avers:
“The Chancellor has appointed Sir Patrick Vallance to lead a thorough review into securing possible prizes in five high-growth sectors. This is the right approach. Serious reflection and consideration.
“The complete opposite in fact of the Retained EU Law Bill […]
“Instead, let’s review, retain, reform and – where appropriate – repeal EU law the Vallance way. Smartly. Not the Retained EU Law Bill’s way. Foolishly.”
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This must be the correct approach in principle: “the Vallance way”.
Yes, the Vallance review may come to nothing.
Indeed, it may never be heard from again: such reviews come and go, and sometimes even disappear with anyone noticing, or caring.
But as a statement of principle, this approach is compelling.
And it shows that even this government is capable of going about legislative and regulatory reform the right way.
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The CBI cannot be regarded as a vehicle for remoaners.
And the speech today was not expressly or implicitly a call for the United Kingdom to rejoin the European Union – or even just the single market.
It was instead refreshingly post-Brexit – about how we go about making policy and laws within our shifted post-Brexit parameters.
The more our politics and policy-making moves in this direction, the better.
The absolutist clamour of Brexiters and the purist refusal of Remainers are both, in their ways, failures to practically deal with our post-Brexit situation.
The Retained EU Law (Revocation and Reform) Bill is now as much an artefact from yesteryear as a leaflet calling for a further referendum.
We are at last moving, slowly, into post-Brexit politics and policy-making – and the government needs to catch up.
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