SECO Examines Burden Imposed By Government Inspections In Switzerland

by Philip Morton, Investors Offshore.com

22 February 2008

As part of its efforts to reduce the administrative burden faced by SMEs, the State Secretariat for Economic Affairs (SECO) has taken a closer look at government inspections in Switzerland.

A survey of 1,600 businesses revealed that the burden for SMEs remains within reason. Over the last five years, SMEs were subject to an average of 1.9 various checks a year.

In November 2007, M.I.S. Trend AG, acting on behalf of SECO, conducted a representative survey on government inspections. It was the first such survey carried out in Switzerland.

The aim was to obtain a better picture of the actual burden faced by businesses due to government checks. In its response to a parliamentary motion from 2006, which referred to the rampant spread of "inspectionitis", the Federal Council promised to regularly assess the situation.

The survey asked how many inspections of various types were carried out. The findings showed that in the last five years a third of businesses had not been visited at all, a further third had experienced one to two various checks, and the remaining third of SMEs surveyed had experienced more than three various checks, resulting in an average of 1.9 visits per SME.

SECO observed that: "These findings would not seem to imply that businesses face an excessive burden due to government checks. Most inspections are attributed to VAT (cited by 29% of firms), followed by cantonal taxes (28%) and working conditions (24%)."

"In terms of the most common problems cited with regard to the checks, 13% of the SMEs surveyed mentioned duplication. 15% had a problem with the timing of the check. 25% complained about their overly formal nature. This issue was already addressed last year in connection with the most common type of check - VAT - by means of a legal amendment."

SECO concluded: "Half of the firms inspected acknowledged the benefits of the checks. 7% of the firms surveyed consider them to be very harmful in general and 24% said they tend to be harmful."

"In the course of the survey, 400 businesses said they would be willing to work with SECO to look into the matter further."

"Work will begin in the coming months to obtain qualitative information, which can be used to prepare targeted improvements."

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