HC Deb 28 April 1980 vol 983 cc950-1
6. Mr. Shersby

asked the Secretary of State for Industry what is the annual cost of the small firms counselling service.

The Under-Secretary of State for Industry (Mr. David Mitchell)

The cost of the counselling service in 1978–79, the last period for which figures are available, was estimated to be about £600,000.

Mr. Shersby

Is my hon. Friend satisfied with the cost-effectiveness of the service? If so, what areas is the service investigating, what are the guidelines that apply in investigating them and how are counsellors selected or nominated to provide this service?

Mr. Mitchell

An early independent evaluation of the counselling in the Southwest shows that, in a sample of 65 clients, about 150 jobs were either generated or saved. Now that counselling is well established throughout the country, we intend to commission a further evaluation by independent consultants. I am also introducing a continuous in-house system of monitoring by following up individual cases. As for the help that counsellors can give, their particular value is that many small businesses, and particularly new businesses, lack a whole raft of management techniques, and the assistance of experienced business men can save many small firms which might otherwise go to the wall.

Mr. Gwilym Roberts

Does the hon. Gentleman accept that small businesses generally are grateful for the management expertise which this service provides? However, there is a problem on which I should be grateful for his comments. I have come across examples—I am sure that many other hon. Members have seen the same thing—of small business men who are unaware of the services offered in this direction. Will he consider methods of improving the general knowledge of these services?

Mr. Mitchell

The hon. Gentleman has drawn attention to an important matter. We are anxious that these services should be more widely known. We have recently introduced a national Freefone number. Those in trouble or with problems can simply dial 100 and ask for Freefone 2444. I am grateful to the hon. Gentleman for the opportunity to advertise that.

Mr. Dover

Is my hon. Friend aware that these services are provided by banks and management consultants, who give much better value for money than a counselling service organised on public funds?

Mr. Mitchell

Perhaps my hon. Friend is not aware of how large a proportion of the work done by the counselling service is concerned with people who are thinking of starting a business. It would be rare to find good value for someone who has not even got a business going in the payment of fees to a management consultant.