Danger Of Over-Regulation For IoM Business Says Expert

by Jason Gorringe, Tax-News.com, London

10 September 2003

A Douglas-based legal expert has argued the case for a UK style regulatory impact assessment system in order to better quantify the regulatory impact of legislation on business in the Isle of Man, the IoM Online reports.

"In the UK the government has asked that no proposal for regulation which has an impact on businesses, charities or voluntary bodies should be considered without a regulatory impact assessment (RIA) being carried out. Why don't we do it here?" enquired advocate Janice Turnbull.

"With the Fiduciary Services Bill and a raft of employment legislation, surely the Isle of Man's market position as a 'low-cost centre' is over," she continues, adding: "Although many of those running businesses - and in particular small businesses - may be worried about the increasing costs of compliance, it is very difficult to know how worried we should be."

"Public availability of RIAs in the UK increases transparency and ensures that the consultation process for legislation occurs in an informed context," observed Ms Turnbull, adding that the island should aim to work towards the five principles of good regulation applied in the UK.

"As a small jurisdiction we may not be able to afford a Better Regulation Task Force as the UK can, but its five principles of good regulation (transparency, accountability, proportionality to the risk, consistency and focus) are admirable and achievable goals," declared Turnbull.

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