HC Deb 25 March 1970 vol 798 cc1414-5
17. Mr. Kenneth Baker

asked the President of the Board of Trade what steps he proposes to take to assist in reducing the present problems of small businesses.

Mrs. Gwyneth Dunwoody

The problems of small firms are currently being examined by a committee of inquiry, with Mr. John E. Bolton as chairman, which was appointed by my right hon. Friend the former President of the Board of Trade. When we receive its report we will consider what steps should be taken.

Mr. Baker

Would not the hon. Lady agree that small business men in every part of the British economy are being affected by the Government's policy of squeeze? As the President of the Board of Trade is responsible for hire-purchase restrictions and regulations, when will he relax them? That does not have to wait until the Budget.

Mrs. Dunwoody

We must not add two and two and make five and a half.

There is no doubt that small businesses are experiencing considerable difficulty because of credit restrictions, but they also receive the benefit of the assistance of many Government grants which the present Government offer them and which were not available before.

Mr. Heffer

Will the Committee be inquiring into the position of the small shopkeeper, particularly in working-class areas, who has a major problem and who sometimes works extremely long hours for very little return?

Mrs. Dunwoody

I see no reason why evidence should not be taken about the position of small shopkeepers as they would come within the terms of reference and might be precisely the sort of people that we have in mind for this study.

Mr. Ridley

Is the hon. Lady aware that the unavailability of credit for expansion and investment is one of the serious inhibiting factors on small businesses, particularly industrial businesses? Will she have a word with her right hon. Friend the Chancellor of the Exchequer to see what he can do to help in this respect?

Mrs. Dunwoody

I am aware that the hon. Member has been waxing eloquent on the fact that the Government make available particularly cheap money for export and that he has expressed disapproval of this. I draw to his attention the fact that by using these methods we assist small businesses to export.