HC Deb 18 June 1979 vol 968 cc885-6
5. Mr. Geraint Howells

asked the Secretary of State for Wales if he has any plans to help small businesses in Wales; and if he will make a statement.

Mr. Nicholas Edwards

The encouragement of small firms is a prime objective in the Government's measures to revive the economy. My right hon. Friend the Chancellor of the Exchequer's Budget proposals will create a new climate for enterprise. The Government are also reviewing ways of reducing the administrative burden on small firms and providing conditions in which they can fulfil their full potential. I now look forward to seeing a positive response from our small businesses in Wales.

Mr. Howells

I am grateful to the Minister for that reply. What plans does he have to give risk capital to self-employed people in Wales who want to start on their own? Does he agree that there is a need for a land bank in this country to help young farmers to start up on their own and to be able to compete on equal terms with their counterparts in Europe?

Mr. Edwards

Small firms figure prominently in the Welsh Development Agency programme of loans and investment. A substantial proportion of selective financial assistance under section 7 of the Industry Act is made to small concerns. This will continue.

Mr. Denzil Davies

Is the right hon. Gentleman aware that the Budget was a very bad Budget for small businesses? Is he aware that not only will the cut of £3 million in the budget of the WDA affect small businesses but that they will be damaged further by the pressure put upon them by the increases in VAT and the penal interest rates? Does not this show that the Tory Party has little interest in small businesses, especially in Wales?

Mr. Edwards

The profit limit for the small companies' rate of corporation tax was raised in the Budget. Further, there were changes to stock relief which will be of particular help to small businesses, while income tax cuts will be the biggest help of all. I must point out to the right hon. Gentleman that VAT levels in most European countries are at the same level as, or are higher than, the level in this country, and it hardly seems to have affected the success of small businesses in other countries. High interest rates are the direct consequence of the profligacy of the Administration of which the right hon. Gentleman was a member.