HC Deb 15 February 1945 vol 408 cc366-9
4. Mr. Walter Edwards

asked the Minister of Labour if he is now in a position to announce details of the scheme to give financial aid to ex-servicemen and women who wish to restart in their own business or work on their own account.

Mr. Bevin

Yes, Sir. A scheme has now been prepared under which persons who have had full-time paid service in the Armed Forces and Auxiliary Services, the Merchant Navy or Civil Defence and were previously in business or work on their own account, will be eligible for a grant up to a maximum of £150 where this is necessary to supplement their own resources and enable them to restart. These grants will be available when releases from the Forces begin after the end of the war in Europe. In suitable cases, grants will also be made to assist persons disabled by war service to set up on their own account for the first time. I will, with permission, circulate a more detailed statement on the scheme in the OFFICIAL REPORT.

Mr. Shinwell

May I ask my right hon. Friend whether he will consider, in this matter, some form of protection for those men who wish to restart in business with limited capital, if they desire to purchase existing businesses at high cost? Can they be protected against the danger of being fleeced by people who sell fictitious businesses?

Mr. Bevin

I have established a committee, over which a former Lord Mayor of London, Sir Frank Newson-Smith, is presiding, to advise me, with the various associations, chambers of commerce and others interested, on the setting-up of an advisory service throughout the country in order that people may be guided before they part with their money.

Dr. Edith Summerskill

In view of the fact that Service women and women in the Civil Defence Services are included, can the Minister say why women in the Women's Land Army are excluded?

Mr. Bevin

The Women's Land Army will be dealt with in another way. It is not a military force and will be dealt with by the Minister of Agriculture.

Mr. Driberg

While welcoming the inclusion of the Merchant Navy in this scheme, might I ask the right hon. Gentleman how it is that merchant seamen can be counted as ex-Servicemen for the purpose of this scheme, but not for the purpose of reinstatement in civil employment?

Mr. Bevin

That is quite a different subject.

Mr. Driberg

It is surely a parallel.

Following is the statement:

1. The scheme, which will be administered by the Ministry of Labour and National Service, is intended to come into operation after the end of the war in Europe when release from the Forces begins, in accordance with the plan already announced by the Government. The primary object is to assist men and women, who were in business or work on their own account before joining the Forces, Merchant Navy or Civil Defence Services, and can show that they need some help, additional to any war gratuities and post-war credits, in order to re-start their business or resume their previous occupation on their own account. The scheme is also intended, in suitable cases, to assist those disabled by war service to set up on their own for the first time. The scheme is, in no sense, one of compensation for losses incurred through the war, but is intended to supplement, within reasonable limits, the provision of war gratuities and other benefits.

Persons Eligible for Grant under the Scheme.

2. The scheme applies to men and women who have given full-time paid service in one of the following since 25th May, 1939:

3. The scheme is primarily for those restarting. Those who are not disabled will be eligible for grants, only if they are restarting in a business of their own or are resuming their previous work on their own account.

4. Persons disabled by war service will be eligible for grants even if they have not previously been in business or work on their own account, provided that, having regard to all the circumstances, this would afford a better method of satisfactory resettlement than any other provided for the disabled. The degree of disablement necessary to qualify will be the same as that laid down under the Disabled Persons (Employment) Act, namely, that it entails a substantial handicap in obtaining or keeping employment which would otherwise be suitable.

5. Before a grant is made, applicants will have to show that they have obtained from the appropriate Government Department any licence or other similar permit that may be necessary; for entry or re-entry into the business or trade in question the obtaining of such a licence or permit, however, will not of itself entitle applicants to grants.

Amount of Grant.

6. The scheme is intended to give a reasonable amount of assistance to enable applicants to meet their initial expenses, where it can be shown that their own resources, including any war gratuities and post-war credits, are insufficient for the purpose. The cost of fitting up premises, obtaining equipment, tools, initial stocks, and similar items, may be such as to require some supplementation of the financial provision already made for those being released from the Armed Forces and other Services.

7. The maximum grant will be £150. Within this limit, the amount granted in any individual case will vary, according to the requirements of the business and the contribution which the applicant can reasonably be expected to make from his own capital resources. Applicants who have received payments in the form of war gratuities and postwar credits will be expected to contribute these, or to show good reason why they are unable to do so. Similarly, applicants who have disposed of businesses or equipment will be expected to include the proceeds in their contribution or to show good reason for not doing so. Account will be taken of other capital resources, but not of the regular payments made to Service personnel during the period of resettlement leave.

8. The scheme is for small enterprises, and is not intended to assist in the financing of projects requiring an initial outlay out of proportion to the maximum amount of grant.

Training.

9. As a general rule, persons will not be able to qualify for assistance under more than one of the various resettlement schemes. Those who have received training for employment under the Industrial Training Scheme, or have been assisted under the Further Education and Training Scheme, will not, therefore, normally be eligible for a grant, but special cases will be considered on their merits. Recipients of grants will, however, be able to take advantage of special short courses of training in simple book-keeping, buying and selling and allied subjects in cases where such courses are likely to be helpful. These courses will be provided free under arrangements made by the Ministry of Labour and National Service, as part of their general plan of training in the resettlement period. Disabled persons who have received training under the Disabled Persons (Employment) Act will not be precluded from a grant under the present scheme. if they are otherwise eligible.

Type of Business.

10. While the scheme should be of assistance in relation to resettlement in the retail or similar trades, it will also apply to other small undertakings of a kind for which a grant would be appropriate having regard to the financial limits which have been laid down. Persons setting up on their own in a craft, including a rural craft, for which special equipment or a kit of tools is needed will be able to apply. In special cases assistance may also he given to persons restarting on their own in a profession.

11. The scheme will not apply to resettlement on the land of those who were working holdings on their own account before undertaking war service. This sort of resettlement will be dealt with under separate arrangements by the Agricultural Departments. The scheme will, however, apply in cases where persons are also eligible for loans from the local authority under the special arrangements relating to small traders in certain coastal towns. An applicant who is otherwise eligible for grant will not be debarred because he is also eligible for a loan from the local authority.

12. Grants will not be made to persons wishing to start or restart businesses outside Great Britain and Northern Ireland, but British subjects from other places may qualify for assistance to set up in Great Britain or Northern Ireland.

Disposal of Businesses assisted by Grant.

13. Recipients of grants will be required to undertake that they will not, within a stipulated period, dispose of a business or equipment, etc., obtained with the aid of the grant, except with the consent of the Ministry of Labour and National Service. Refund of the whole or part of the grant may be required from the proceeds of disposal.