Consistency in the regulatory process is important as it gives a degree of predictability and legal certainty to individuals and groups within society and the economy. Ad hoc approaches, whereby similar situations are treated differently, tend to add to transaction costs associated with particular activities. They can also create unnecessary bureaucratic layers to social and economic processes, and ultimately diminish respect for the regulatory process.

Two types of consistency are deemed particularly important in this context: first, the idea of structural consistency whereby regulatory actors in similar situations would have broadly similar roles, responsibilities, powers and perhaps even structures. This might apply to independent regulatory authorities and to Government Departments and agencies. For example, responsibility for consumer complaints and/or competition has tended to be treated differently in the mandates and operations of the various sectoral regulators.

The second aspect of the regulatory process for which greater consistency is important is in achieving greater internal consistency between regulations and legislation within particular sectors. Regulations should be compatible with international trade rules, EU law and competition policy. Regulations should also be consistent with each other to the extent that conflicting requirements are not being imposed on sections of the community or in particular economic sectors. They should also recognise the economic linkages between different sectors.

In terms of consistency within the regulatory system, it is important that, where markets are reformed or deregulated, other regulatory systems should not be used as an alternative form of regulation.

Are we dealing with similar situations across the board in similar ways?

We will ensure greater consistency across regulatory bodies

The evolution of regulatory policy in Ireland has not, to date, proceeded in a uniform fashion. The result has been the establishment of regulatory institutions with different mandates, as well as different levels of responsibility, different legal bases and different structures. Most other OECD countries have seen a similar pattern of development.

One of the main issues is the variety in structures and responsibilities across different sectors. While these may not be significant problems in themselves, the adoption of a national regulatory policy should ensure that consistency is introduced across the regulatory system, where possible. The issue is not about following 'precedent' but rather one of dealing with situations consistently. It is also about public bodies seeking information or designing application processes, as much as possible, in the same format. This would ensure greater confidence in the system, greater transparency in decision-making and promote greater efficiency across the various sectors.

Given the limited size of the Irish economy and public service, integration of regulatory activity may be strengthened by a sharing of resources, especially in generic areas such as financial management, administration, human resource management (HRM), data systems and legal services. To this end, Government policy will be to minimise the creation of new regulatory authorities. In addition, dialogue between the various regulatory authorities should be maximised to encourage the sharing of best practice, and resources where possible, across the sectors.

On a separate point relating to consistency, it is important to recognise the advantages, in certain circumstances, that a complementary approach to Public Service Obligations (PSOs) would bring to the island of Ireland. In the case of utilities' regulation, such a shared approach to regulation could promote greater competition, security of supply and consumer welfare.

To sum up: In terms of improving consistency in regulatory bodies, the Government will:

Create new sectoral regulators only if the case for a new regulator can be clearly demonstrated in light of existing structures [Action 4.2.1];
Assess the possibilities for rationalisation of sectoral regulators including through the merger of existing regulators and/or through the sharing of common services [Action 4.2.2];
Promote the strengthening of existing contacts between the sectoral regulators, the Competition Authority and the Office of the Director of Consumer Affairs [Action 4.2.3];
Pursue development of a complementary approach to regulation, and PSOs in particular, on an island of Ireland basis [Action 5.5.2].

Will the regulation give rise to anomalies and inconsistencies given the other regulations that are already in place in this area?

We will ensure that regulations in particular sectors/areas are consistent

The principle of consistency applies to both new and existing regulations in a number of ways.

In the context of new regulations, it is important to attain a degree of consistency with existing or proposed national, European or international regulations, especially in key economic or social policy areas. To ensure even greater consistency in the regulatory system, it is important that, where markets are liberalised, other regulatory measures for example, new physical planning, safety or other requirements, are not used as an alternative form of regulation to restrict market entry.

In terms of existing regulation, systematic reviews would be useful to allow regulatory objectives to be maintained, improved or removed in the light of changes in economic or social situations. Review could also occur after the collection of new data provides new information on the regulated market or activity. This will ensure that regulations remain targeted on their objectives while allowing for adjustments to maintain consistency across the thematic area. In addition, mechanisms such as "sunsetting", whereby regulations expire after a certain period of time, can also be used to ensure that regulations remain relevant and consistent over time.

Consolidation is the traditional tool for making legislation more accessible and coherent. Departments have used this tool to ensure up-to-date legislation but, generally, the process has been piecemeal which is consistent with the experience of codification/Statute Law Revision in other countries. A comprehensive policy is necessary, using tools of codification, restatement, simplification and consolidation, to reduce the volume of legislation and make it more coherent and accessible. This is in line with the public service modernisation commitments under 'Sustaining Progress', the current social partnership agreement.

Successive amendments to Statutory Instruments can create difficulties in their interpretation. As outlined above, a stronger programme of consolidation is needed. As best practice, therefore, Departments should consider consolidating Statutory Instruments that have been amended more than three times.

Taken together, these streamlining measures will create modern, more user-friendly legislation that will substantially reduce transaction costs and give citizens and investors a more accessible legal system. These policies will mirror work being undertaken with the same objective at European Community level. It is estimated that the Community acquis - the secondary legislation binding on EU Member States - has been reduced by 20,000 Official Journal pages following completion of a consolidation programme.

To sum up: In terms of improving internal consistency of regulation in particular sectors, the Government will:

Implement a Programme of Statute Law Revision [Actions 1.7.1-1.7.2];
Use RIA to ensure the consistency of new regulations with the existing body of regulation [Action 1.3.1(c)];
Examine the advantages and disadvantages of using review mechanisms such as "sunsetting" [Action 1.3.1(b)];
Ensure an integrated approach is taken such that removing regulatory barriers in a particular sector is not offset by imposing different kinds of regulatory barriers to entry in that sector [Action 1.3.1(a)];
Improve the quality of Statutory Instruments through greater consolidation [Action 1.2.2]

<< back

next >>