LOBBYING GOVERNMENT: CAN ONE FIRM MAKE A DIFFERENCE?
Every year there are new Government schemes and new regulations which have a real impact on the building products industry. Whilst new grants are made available to homeowners, costly technical standards and more paperwork are forced upon the industry. Why is it then that lobbying Government does not appear to be on anyone's agenda?Roger McDermott, Government Relations Consultant at Michael Rigby Associates, explains that, $ldquo;Individual companies wrongly assume that they can't influence the machinery of Government and instead passively rely on their Trade Association to represent them. However, individual firms can effectively lobby to minimise the financial impact on themselves and to improve their competitive position.$rdquo;
$ldquo;I would advise a client to pursue a project to lobby Government only when I believed that the objectives were achievable.$rdquo;
No Minister!
The Building Regulations are under perpetual review and there seems to be a never-ending stream of legislation and regulation from the British and European Parliaments. In the best case scenario new policies improve the environment and spread the cost fairly across the industry. In the worst case, however, new policies can be extremely costly, spread the financial burden unfairly across the industry and result in British companies being made uncompetitive alongside their European and International competitors.
Key Government websites
Money In... and Money Out!
Not all Government policies result in higher taxes and costs to industry. Recent Government environmental and social policy has injected billions into the UK building products market.The Home Energy Efficiency Scheme (HEES) run by the British Government will provide grants of up to £2,000 to nearly half a million households in the next two years. This is worth up to £1 billion to companies in this market. Furthermore, the Government has allocated an additional £3.9 billion resources to local authority and other social landlords to speed up the repair and improvement of social sector properties, including improved heating and insulation.
While the injection of such large sums into the sector is to be welcomed, building products companies cannot afford to be complacent. Impact assessments published by Government Departments have estimated that the introduction of higher technical standards, detailed in Figure 2, will cost the industry £billions. Document L alone will cost the industry in excess of £3 billion over 19 years. The details and impact costs of all these policies can be found on Government websites.
Recent legislation and consultations
- "Document L" of the Building Regulations (went live on 2nd April 2002)
- "Proposals for Amending Part B (Fire Safety) Requirements" of the Building Regulations (consultation closed on 15th February 2002)
- European Commission's proposed "EC Directive on the energy performance of buildings" (approved by the European Parliament on the 6th February 2002 subject to certain amendments)
The missing part of your business strategy
These sums of $ldquo;money in$rdquo; and $ldquo;money out$rdquo; will have a significant impact on the bottom line of individual firms and yet, more often than not, lobbying Government is neglected in the business strategies of most companies.Many companies depend on their Trade Association to represent them. However, Trade Associations are either small, with minimal political clout, or large, with such a cross-section of members' views and objectives that it is very difficult to represent the interests of individual members.
A few progressive companies in the building products industry have successfully used lobbying as a part of their business strategy. They have found it cost effective to get themselves involved in Government initiatives for their own benefit and ultimate advantage.
The objective of lobbying is to improve your bottom line and improve your competitive position. Individual companies get involved because no two companies will make the same case to Government. Whilst Trade Associations can be slow and cumbersome, individual firms can be quick and focused.
You can make a difference
Government does want to hear from you, does want to improve the business environment in which you operate and does want to improve your international competitiveness. Government especially wants to hear from smaller companies, which they see as the growth engine of the British economy.So, when companies do decide to lobby it can be extremely effective. If targeted well, a creative idea can find its way onto a Minister's desk and become policy.
Individuals and businesses can and do write to Ministers and all will get a polite letter in response. However, to influence policy successfully and achieve the objectives of your strategy, targeted messages need to be sent to targeted individuals and organisations.
A few days of advice and help can reduce time wasted delivering the wrong messages to the wrong people. Rather than going it alone, a Government Relations consultant will:
- identify key decision makers and policy influencers
- provide advice on how best to approach decision makers
- approach individuals on your behalf
- create strategic alliances
Checklist
- Are you aware of new policies being developed in Britain and Europe that will affect your company? (If you're unsure it may be worth visiting the key Government websites listed in Figure 1).
- What will be the impact?
- Do you want to influence the outcome?
- Have you got a good idea which you think could result in a new Government initiative or policy?
- Do you want to raise your profile within Government?
