§ 7. Mr. David Mitchellasked the Secretary of State for Employment whether he will ensure that exemption for small businesses from training board levies moves in line with the movement of wages in those industries in which the exemption is based upon the total of wages paid annually.
§ Mr. GoldingI am informed by the Manpower Services Commission that this factor is always taken into account where the exemption level for small businesses is based on the total of emoluments paid. It is not, however, the only factor influencing the level of exemption.
§ Mr. MitchellIs the hon. Gentleman aware that between 1974 and 1975 levy exemption was raised by 17.3 per cent. but that in the same period wages rose by 25.5 per cent., so that there is a substantial lag? Will he draw that factor to the attention of the Manpower Services Commission? Secondly, what are the other factors to which he has referred?
§ Mr. GoldingI will draw the attention of the Commission to the facts that the hon. Gentleman draws to our notice. The other factors include the extent of the training needs in the particular industries, the ability of the training boards to provide service to small businesses and the cost effectiveness of providing a service to small firms.
§ Mr. DalyellDoes not the ability to provide services vary vastly from one area to another? Could the less good areas be brought up to the standard of the best?
§ Mr. GoldingWe hope to achieve a uniform standard throughout the United Kingdom, but certainly this is a matter which the Manpower Services Commission and the training boards will take into account.
§ Mr. HayhoeDoes the hon. Gentleman appreciate that small businesses have been clobbered in a variety of ways by actions of the present Government and that some easement in this area would be very helpful?
§ Mr. GoldingThe Government leaves it to the industrial training boards and the Manpower Services Commission to work out the needs of particular industries. That policy will continue.