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Firms and unions collide over red tape truths. By Dan Martin

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17th Mar 2006
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Businesses have hit back at criticism by trade unions that they are making exaggerated claims about being excessively burdened by red tape.

In a report released today, the TUC said employer lobbyists 'deliberately confuse the administrative costs of regulations with the costs of implementation' meaning paying the minimum wage is counted as red tape rather than the 'minimal' costs of administering it.

The union group also attacked business groups for rating measures with wide support and benefits such as controlling workplace asbestos as over-regulation and not accurately reflecting the views of their members.

The TUC cited a government survey which found twice as many firms backed new employment rights as found them a burden.

TUC general secretary Brendan Barber, said: 'The red tape campaign is spin, smoke and mirrors. It's time employer lobbyists put up or shut up. They should tell us they want to abolish the minimum wage, paid holiday rights and cleaner vehicle emission standards or stop calling them red tape.'

But Andrew Mowlah, policy adviser at the Forum of Private Business (FPB), hit back at the TUC's report claiming it misunderstood the true concerns companies have.

'Employers are not opposed to employment rights for employees but are concerned about how they are regulated and implemented,' he said.

'For instance, health and safety enforcement is so inconsistent ' in one area firms will be allowed to get away with anything while in others authorities will come down overly hard on them. It's the consistency that businesses are concerned about.

'Minimum wage is also clearly a direct cost to business and it is absolutely ridiculous to say there are not costs in administering it. Small business owners are hands on at the heart of the business and know the fixed costs.'

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