Share

burden of proof

Two important policy indicators have been released within the last few weeks - the Scottish Chambers of Commerce Business Survey for the first quarter of 2009 and the British Chamber of Commerce's Burdens Barometer.

It will come as no surprise to anyone to hear that the SCC survey points to a difficult year ahead with the twin bêtes noir of weak demand and continued pressure on profits and margins setting the pace.

But it may also come as no surprise to an ever-optimistic North-east to hear that tucked in amongst the gloom there is the suggestion of a glimmer of hope in the future for some sectors, particularly manufacturing and tourism.

Scottish manufacturers are anticipating that they will see a modest rise in export activity by this time next year, leading to a view that this might be the sector which will help lead us to economic salvation. That's certainly borne out by our experience here at AGCC - our International Documentation Service, which provides export documents for businesses exporting to countries across the globe, has just recorded its busiest month ever. This level of activity is further borne out in the pages of this Bulletin with news story upon news story highlighting success and growth.

Tourism - happily enough one of ACSEF's four priority pillars for growth - is also showing potential as an early front runner in the race out of the recession. The combination of the appeal of the Year of Homecoming coupled with the unappealing exchange rate which is expected to result in fewer overseas holidays points to a promising spring and summer.

That's an approach which is very much being pushed locally; on the day of writing, VisitScotland's regional director called on us all to become ambassadors for the North-east and to promote it to potential visitors. The request is part of the body's strategy to market the area as an affordable - and worthwhile - alternative to an overseas holiday.

Local politicians and hoteliers are also encouraging us to set aside our inborn reticence and extol the virtues of the place we live in and the move to unite and support the region's tourist offering is certainly something which we as a Chamber will be supporting.

But while we can't always promise soaring temperatures here, the main finding of the BCC Burdens Barometer for 2009 will certainly be enough to make temperatures rise.

The updated figure shows that the total cost of major regulations to business, approved since 1998, is now a sizzling £76.81bn - a rise of £10.82bn on last year. Scotland's share of that is £4.8bn.

The figures speak for themselves and are a clear indicator why the Chamber network continues to lobby against additional regulations and the resultant high costs being applied to business.

But again that's not say there isn't a smidgeon of good news in there - 18 regulations since 1998 have produced a total saving for business worth £1.4 bn.

While that may be seen as evidence that the government's better regulation agenda is beginning to do its job, as a Chamber network we are in agreement that, particularly in light of the current financial pressures on many firms, much more needs to be done to immediately reduce the overall burden and this will continue to be a focus of our lobbying activitiy.

The Burdens Barometer is an independently produced calculation of the cumulative cost to business of new regulation which is compiled by the Manchester and London Business Schools. It is calculated using the Government's own figures as each Department is required to complete Regulatory Impact Assessments that evaluate the risks, costs and benefits of any new regulatory proposal that has an impact on business.