CBI seeks more effective scrutiny of proposed EU laws by UK Parliament

In August 2004, the CBI employers’ organisation called for a package of parliamentary reforms aimed at increasing the UK’s influence over EU legislation. The CBI criticised the UK Parliament for failing to scrutinise proposed European law effectively and prevent Whitehall 'gold-plating' EU laws when implementing them domestically.

On 20 August 2004, Digby Jones, director-general of the main UK employers’ organisation, the Confederation of British Industry (CBI), criticised current arrangements in the UK Parliament for scrutinising and influencing legislative proposals emanating from the European Union, and accused MPs of being 'asleep on the job'. The CBI would like to see a package of parliamentary reforms to increase national influence over EU laws and counter what the CBI sees as 'gold-plating and heavy handed implementation' of EU legislation in the UK.

The CBI has repeatedly argued that EU business and employment regulation threatens the competitiveness of British businesses (UK0310102N). According to the CBI, 'Westminster never seems tuned in to what Brussels or Whitehall wants. We have the most successful economy in Europe. We do not want it damaged by regulations from Brussels that belong to a bygone era. MPs have a duty to respond. Our continued success in a globalised economy depends on it.'

In a debate with Mr Jones on BBC Radio 4’s Today programme, Peter Hain MP, leader of the House of Commons, said that the government was 'on the case' and that tighter scrutiny of Brussels was a key issue being looked at as part of the House of Commons’ modernisation agenda. He said that a new parliamentary committee was to be set up to improve the scrutiny of EU legislative proposals and enable MPs to examine and seek to influence such measures at an earlier stage. This is expected to take public evidence from government ministers, MEPs and EU Commissioners.

The CBI says that 'the government has acknowledged the issue and put constructive proposals on the table but these do not go far enough. We need a more proactive approach from our Parliament that tries to influence [EU] initiatives at an early stage, not when it’s too late to make an impact.' The CBI criticises the UK parliament for taking 'an extraordinarily reactive approach' to the EU legislative process. It believes that MPs frequently take an interest in EU legislation only at the final stages of national implementation. The CBI therefore suggests an 'early-warning system' so that MPs and interest groups can react speedily to European Commission proposals. The CBI also wants opportunities for interest groups to make timely representations to MPs on EU legislation.

Earlier in the same week, the opposition Conservative Party’s trade and industry spokesperson, Stephen O’Brien, said that the UK needed to 'stop implementing EU business rules more strictly than its competitors'. Launching the party’s business deregulation programme on 18 August, Mr O’Brien said that a Conservative government would end the so-called 'gold-plating' of EU Directives when they are implemented in the UK. However, a spokesperson for the Cabinet Office’s regulatory impact unit said the present government’s policy was to implement Directives to achieve their aims, on time and in line with other UK policy goals, and that: 'There is no evidence that the UK routinely over-implements European legislation.'