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Creating new regulation is too easy, says Redwood

Creating new regulation is too easy and we are “drowning” in it as a result, according to Conservative MP John Redwood.

Writing on his blog, Redwood says statutory instruments make it too easy for regulation to get onto the statute book.

Statutory instruments are a form of legislation that allow the provisions of an Act of Parliament to be brought into force or altered without Parliament having to pass a new Act.

Redwood says: “The EU is in regulatory overdrive. The pace and volume of financial services and banking regulation is ferocious. The new work on economic governance and surveillance is intrusive. We are drowning in so much regulation.

“Parliament needs a new way of handling this rash of law. Some of us are pressing for SIs to be subject to amendment and proper debate. Until they are, regulating is just too easy.”

Yesterday, he told a committee responsible for SIs that two pieces of regulation about investment banks going into administration were added to the statute book after just 37 minutes of debate, with a maximum of only 90 minutes available for debate, during which there was no opportunity to make amendments.

The regulation in question will allow investment banks to be put into special administration if they are unable to pay their debts, or because it is in the public interest to do so.

He says: “Was I happy with it? No I was not. Why did I not take [MPs] through the regulation with a fine tooth comb? Because there was no point. The SI could not be amended.”

Today, the Treasury select committee warned about the dangers of rushing regulation.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Yes John, legislation is not a panacea.

  2. Legislation is often counter-productive. You rarely can change hearts and minds through it.

    FSMA has resulted in what was the UK’s best export earner (financial services) almost bringing Britain to its knees.

    Age discrimination laws can work directly against those it seeks to protect.

    EU proposed gender rules for underwriting will result in an unholy mess if they go through.

    We need rid of much of this nonsense!

  3. Creating new regulation certainly is too easy, especially for a body that enjoys statutory immunity from prosecution, is accountable to nobody, ignores the Statutory Code of Practice For Regulators, takes no notice of anything said to it by those it purports to regulate and which pays nothing itself for the consequences of its own failures.

    Perhaps it’s because these people are paid so very well that they fool themselves into believing that they actually fulfil a useful role in society. If only.

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