News item | 08-07-2022 | 15:00
SMEs do not notice enough what the national government is doing against regulatory pressure. That is why the cabinet is changing its approach significantly and will focus on reducing regulatory pressure per sector. This measure is one of the components of the new program that the Council of Ministers has approved on the proposal of Minister Adriaansens of Economic Affairs and Climate Policy.
The industry approach starts in six sectors: hairdressers, hotels with restaurants, metal companies, food manufacturers, construction or maintenance companies and clothing stores. This is done on the basis of so-called SME indicator companies in which almost all legal obligations for SMEs occur. For example, the cabinet is mapping out bottlenecks and their costs at the entrepreneurial level. This then leads to sector programs to effectively reduce regulatory pressure together with companies, sector organisations, other government bodies and implementing organisations.
In the run-up to this decision by the Council of Ministers, more than two-thirds of the bottlenecks in legislation and regulations that business representatives submitted to the cabinet in June 2021 have been resolved or addressed.
Minister Adriaansens: “Entrepreneurs want fewer rules. The government’s approach to regulatory pressure was too unfocused and therefore did not lead to the optimal result. That is why we are now going to work in more detail per sector. And we have decided to monitor the development of regulatory burden (costs) more actively. In this way we can solve bottlenecks in a more targeted way. And companies can focus on what they are good at: doing business.”
Other measures new approach to regulatory pressure
In addition to the sector approach, the new program consists of various other measures. The application of the SME test, a panel in which entrepreneurs can indicate in advance whether new laws and regulations are workable, will be further improved. For example, by looking back at the operation after the introduction of rules. The Advisory Board for the Assessment of Regulatory Pressure (ATR) will also become a permanent advisory body of the government. It is still being examined how the tasks of the ATR will be further expanded.
With an online dashboard, the government will communicate more actively than before about the main results of the national approach to regulatory pressure. The dashboard also provides insight into the actual development of the total regulatory burden in the Netherlands. Insight into these costs will mainly be used to see in which sectors or domains the regulatory burden is highest and to determine where a more targeted approach is desirable.
Regulations should promote a level playing field
With regulations, the government creates a fairer playing field for all entrepreneurs, nationally and internationally, and protects consumers and employees. Many entrepreneurs still too often see regulations as difficult, complex and expensive. At the same time, they also benefit, because regulations offer a foothold and protection against market power. The aim is to find the balance between rules that work and at the same time limit the regulatory burden.
From the beginning of 2023, the House of Representatives will receive regular progress reports with information about the results of the programme.