Computerisation to slash €32M a year in red tape for Irish businesses

More than 300,000 Irish businesses and sole traders will see the cost of compliance with transport regulation cut as new Department of Transport, Tourism & Sport and Road Safety Authority computer systems go live later this year. The total projected annual savings to business will be €32 million.

This followed a detailed review by the Department, in conjunction with Sira Consultants, of the impact on business of the following regulations:

• Testing and taxing of commercial vehicles;
• Vehicle Drivers’ Certificate of Professional Competence;
• Road Transport Operators’ Licence;
• Tachograph Regulations applying to vehicles above 3.5 tonnes;
• National Car Test;
• New Road Vehicle Procedures.

The Standard Cost Model was used by the Department, and Sira Consultants, as the basis for interviews with a sample of the affected businesses. This provided a detailed and accurate measurement of the cost of the compliance burden on businesses. The Standard Cost Model was developed in the Netherlands, and was championed by Minister Varadkar when he was Opposition Spokesperson on Enterprise, Trade & Employment.

The following businesses will benefit:

• 300,000 owners of commercial registered vehicles;
• 55,700 professional drivers;
• 46,879 businesses with vehicles above 3.5 tonnes;
• 6,249 road transport operators.

To date, costs have been reduced by around 3.75% and the goal is to reduce them by 28% by the summer thanks to:

• Reform and computerisation of the Road Transport Operator Licensing system. This is due to be finalised shortly, yielding a saving of €1.3 million to business;
• Reform and computerisation by the Road Safety Authority of Commercial Vehicle Roadworthiness Testing including creating a direct link to the Motor Taxation System. This is scheduled for completion in the summer, with a saving of €26 million to business;
• Digital tachographs have been phased in since 2008 replacing older analogue tachographs, and has saved businesses €4 million per annum to date. 

Note: 

• The SIRA Report was carried out in full compliance with EU standard methodology. It shows that there will be a saving of about €32 million per annum to industry in reduced administrative costs.
• This action followed a 2007 announcement by the European Commission of plans to reduce the administrative burdens of European legislation by 25%.
• Working with the Department of Jobs, Enterprise and Innovation and consultants SIRA, the Department of Transport, Tourism and Sports completed its measurement in September 2012 and SIRA produced its report.
• The full report can be accessed at: www.transport.ie/viewitem.asp?id=13729&lang=ENG&loc=1512