HC Deb 26 April 1976 vol 910 cc15-6
15. Mr.Luce

asked the Secretarty of State for Trade if he will review the provision of Government assistance and facilities for small businesses involved in exporting.

Mr. Meacher

Government services for exporters are designed to cater for n of he needs of all exporters irrespective of size and are widely and successfully used by small businesses. They are kept under review by the British Overseas Trade Board, and if the hon. Member has particular suggestions to make I would be glad to refer these to the board.

Mr. Luce

Does the Minister realise that many small businesses involved in exporting feel that large business organisations are given more favourable treatment in terms of exports by the Government and the ECGD in such matters as pre-shipment finance and credit facilities? Will he take a fresh look at the situation and do his best to encourage small businesses to export?

Mr. Meacher

It is true that some services provided by the BOTB and in other ways benefit major projects and large producers. It is right to give particular assistance at the heavy end of the business, but there is advantage to smaller contractors in terms of subcontracting. There are also services available to smaller exporters in terms of the Export Intelligence Scheme and the European Component Service, which are widely taken up by smaller companies, the Group Export Educational Visit Scheme and also facilities for credit insurance cover. The hon. Gentleman also mentioned pre-shipment finance facilities. Performance bond cover at the lower limit has been reduced from £20 million to £2 million and the commercial bonding market is able to look after the problem below that minimum.

Mr. Ioan Evans

As well as giving Government assistance to small businesses, will the Minister consider giving Government protection to small businesses, involved in takeover bids by financial manipulators and action by asset strippers who have put companies out of business and thereby caused the loss of jobs as well as loss of exports?

Mr. Meacher

That is a matter we shall have under consideration in future legislation on companies.

Mr. Goodhew

Is the Minister aware that a successful export business depends on a good home base? Therefore, will he talk to his right hon. Friend the Chancellor of the Exchequer about some of the measures which he has taken against small business in recent years and try to get those measures reversed?

Mr.Meacher

There has been a considerable improvement in export performance by small businesses. The hon. Gentleman's remarks do not appear to be substantiated by events.

Mr. James Lamond

Will not the £950 million line of credit negotiated between Her Majesty's Government and the Soviet Union afford considerable facilities to small businesses interested in assisting our exports? If that is the case, will the Minister find out from the Opposition whether they are in favour of assisting small businesses or wish that credit facility to be withdrawn?

Mr. Meacher

My hon. Friend makes an effective point.

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