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Government talking to business on EU services directive

DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2007/090) issued by The Government News Network on 5 November 2007

The government today launched its consultation on proposals to implement the Services Directive.

The landmark agreement on the Directive means EU governments must cut red tape and provide practical help to make it easier for service providers to expand into other EU markets.

The UK, with its strong services sector, will be one of the largest beneficiaries with benefits of up to £6 billion a year and thousands of new jobs for the economy.

Parliamentary Under-Secretary of State for Trade and Consumer Affairs, Gareth Thomas said:

"Small and medium sized firms that are often hardest hit by the cost and time involved in trying to enter new markets will benefit the most. Consumers will also benefit from a greater choice of services, increased quality and lower prices.

"The Directive achieves these goals without affecting essential protections in areas such as health and safety, and employment.

"We want to make the single market a reality across the EU. We are already reforming regulation to simplify and remove unnecessary burdens on business and I want to hear from as many people as possible to help ensure we deliver this in a way that will most benefit UK businesses and consumers." Eventually, businesses wishing to operate in another EU country will be able to use a new website to find out what they need to do to expand in that country.

The consultation document includes proposals on:

* Increasing cooperation between regulatory and supervisory bodies in the UK and European member states;

* Improving the quality of services and the rights of customers;

* Establishing an online point of single contact which will provide essential information for service providers who want to set up in the UK and enable them to complete the necessary formalities; and

* Emerging conclusions from a review of regulation affecting service provision.

The consultation will close on 11 February 2008. To contribute, visit: http://www.berr.gov.uk/europeandtrade/europe/services-directive/page9583.html

Notes to editors:

1. The Directive was agreed in December 2006 and the Government is required to implement requirements into UK legislation and practices before 28 December 2009.

2. A draft impact assessment is also open for comment.

3. The Directive covers a wide range of services. These include:

* Business services - such as management consultancy; advertising; facilities management and office management.

* Services to business and consumers - legal advice, estate agents and letting agents, architects and distributive trades.
* Consumer services - tourism including tour guides and travel agents; leisure services, amusement parks, plumbers and electricians.

4. A number of industries and activities are excluded from the Directive because they are covered, or will be covered, by European law. These include financial services, electronic communications services and networks, transport services, temporary work agencies, healthcare services, audiovisual services and gambling.

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