FSB Urges End To 'Legislation Through The European Court'

by Robin Pilgrim, LawAndTax-News.com, London

28 February 2006

The UK's Federation of Small Businesses (FSB) last week raised concerns about changes to key regulations for businesses which may result from cases currently before judges in Europe.

According to the FSB, there are at least two cases now being considered by the European Court of Justice (ECJ) where the European Commission has taken the UK Government to the Court to clarify whether current UK law complies with EU regulations.

The first case (C-484/04) has been brought in relation to the Working Time Directive and the second (C-127/05) is disputing UK Health and Safety rules.

The Federation has therefore called on the UK Government and MEPs to "better scrutinise draft laws in future to prevent further flawed legislation and the uncertainty for business that it causes".

The small business group went on to explain that such uncertainty is caused when businesses adjust to new legislation and are then obliged to alter their practices again soon after implementation through the courts.

John Walker, National Policy Chairman for the FSB, explained that:

“This is a worrying development for many of our members. We hope that the Government wins these cases to protect the current system. It may not be perfect but it functions relatively well and is far better than what might result from the Commission winning these cases.

“This new tactic, legislation through the European Court, is one that causes us great concern. We are very worried that, just as our members have become used to complying with a new law, it can be altered still further. The regulatory burden is already high on small firms and this could greatly increase that burden."

“Health and Safety legislation and the issue of working time are both vital to get right. Our members take the health and safety of their workforce, the greatest asset in any business, very seriously but common sense and appropriateness are vital and are contained in the current UK law. Changes are not needed."

“We also call on the UK Government and MEPs to raise their game when drafting and approving legislation to ensure that similar threats to firms’ ability to trade do not hang over businesses in future.”

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