'Red tape' is costing Irish business €600 milloin every year, according to the Irish Business Employers' Confederation (IBEC).
The figures were issued by IBEC in response to this afternoon's publication of the Government White Paper on Better Regulation, which was launched by the Taoiseach, Mr Ahern, and the Tánaiste, Ms Harney.
According to the employers' body the cost of adhering to legislation governing business compliance, is a "burden" totaling 4bn per annum.
Today's White Paper, which contains recommendations designed to streamline the compliance process, reveals that 15 per cent, or costs to Irish business of 600m, are avoidable.
Unveiling the report, the Taoiseach said that such unnecessary costs were hindering economic competitiveness.
"We must strive to minimise this burden. Over-regulation can lead to stagnation," he said.
His sentiments were echoed by the Tánaiste, who maintained that "better regulation is less regulation."
The Paper proposes a three-pronged approach to ensuring better regulation. In the first instance, Government departments will stage a Regulatory Impact Analysis (RIA) - a measure which will consider the benefits and costs of any regulatory action to the economy and society, focusing in particular, on costs incurred to the SME (small and medium enterprises) sector.
Secondly, systematic reviews of existing legislation will be enacted. Thirdly, a programme of Statute Law Revision will be set up. The latter aims to update pre-1922 legislation, for example to update statute law in areas such as land law and liquor licensing.
Civil servants have begun to pilot the proposals contained within the report, with a view to gaining Cabinet acceptance by January next.
The Paper has been drafted in response to the 2001 OECD report "Regulatory Reform in Ireland", which warned that the cost and length of future economic downswings would increase Ireland did not overhaul its regulatory regimes.