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.