Bill Midgley column

Mar 30 2005 By Bill Midgley, The Journal

One of the most interesting and challenging roles as president of the British Chambers of Commerce is the regular meetings held with Government ministers. And the past month has been no exception, including two meetings with the Chancellor, one with the Prime Minister and one with the Secretary of State at the Department of Trade and Industry, Patricia Hewitt.

These meetings are usually held under what is known as "Chatham House rules" which is an odd expression to indicate that the substance of the meeting is not for public debate. But although they are used to ensure a degree of confidentiality, detail of the meeting is rapidly in the public domain.

Two areas stand out from recent meetings. Firstly, the importance of ensuring that business retains its place on the election agenda.

And there is one area of great encouragement - the attitudes of both the Prime Minister and the Chancellor towards red tape and regulation. This is an area which has caused much pain for business in the past, but it would appear from my meetings that at long last both senior members of our Government have recognised that regulation is strangling our business and seem determined to do something.

One area where there is room for a ready improvement is in ensuring that the regulators know the business that they are allegedly overseeing.

Far too many of those who operate in such positions regulate by textbook; in other words, they have little experience of the industry and the problems it has to face.

A greater understanding, therefore, of what business is about is undoubtedly necessary on the part of our regulators, even if they have to go through the hard regime of working in such industries for a period of time. That is not a two-week job-share experience, but like two years.

Perhaps a more revolutionary idea would be to ensure that only those who have worked in those industries are recruited to positions of responsibility so far as regulation is concerned.

If the Government want to take on that challenge I am quite sure we would see a much better response to regulation - on both sides of the divide. The Prime Minister's and the Chancellor's stance is extremely welcome. Hopefully they will ensure that their approach does not become bogged down in bureaucracy.

Bill Midgley is president, British Chambers of Commerce