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Chris Huhne: we need smart regulation in the energy sector

June 19, 2011 12:18 PM


huhne hard hat• [Jun 19] YESTERDAY Chris Huhne spoke at the Social Liberal Forum's conference on smart regulation for the energy sector: 'It's a pleasure to speak at the first conference of the Social Liberal Forum. We Liberal Democrats have always prided ourselves as a party of ideas - and they're needed more than ever now that we're in government.

Whatever your view of The Orange Book back in 2004, it did at least trigger a debate about Liberal ideology, about what it means to be a Liberal Democrat in today's Britain. I was pleased to contribute both to The Orange Book and to its social liberal counterpart, Reinventing the State, and I hope the Social Liberal Forum can continue the debates about philosophy and policy that a vibrant party needs to renew itself and its thinking.

Now, it's natural that I should focus this afternoon on the 'fuel' element of the triple crunch which this session [The triple crunch: credit, fuel and food - how we ensure that the economy that emerges post-crisis is sustainable] is about - but I want to use it to illustrate some conclusions applicable to all three areas.

. . As a party, we need to reclaim the concept of 'smart regulation', rules aimed at maximising benefits and cost-effectiveness. Smart regulation is long-term, predictable and non-discriminatory. It is built on open and flexible standards, maximising innovation. Compliance is enforced strictly and fairly, but the costs of compliance are minimised.

Look at what the Dutch government did when our sister parties, VVD and D66, were in power together ten years ago. In 2000 they established the Dutch Advisory Board on Administrative Burdens, Actal, with the aim of reducing the regulatory burden on businesses, citizens, institutions, professionals and local authorities. Actal advises the government and Parliament on the impact of proposed regulations, and provides support to programmes aiming to reduce their burdens . .

The interaction between business and government is a fundamental element of our society, and a key area for social liberals to think about and debate. Of course governments fail, but so do markets. Between the obsession with micro-management and target-setting displayed by the Labour Party, and the fixation with deregulation and scrapping rules just because they are rules on offer from some right-wing ideologues, we Liberal Democrats have a real chance to define an evidence-based, intelligent and distinctive approach.

It is based on the real world, and it is complex. But it also meets the real challenges we face. Thank you.'

• Chris Huhne: we need smart regulation in the energy sector [Lib Dem Voice Jun 19]

• Chris Huhne attacks Tory 'zealots' over proposed scrapping of green laws [Allegra Stratton, Guardian Jun 19]

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