HC Deb 22 February 1982 vol 18 cc582-3
13. Mr. Trippier

asked the Secretary of State for Industry what response there has been to his enterprise allowance pilot scheme in East Lancashire, and what is the role of the Small Firms Advice Bureau in this connection.

Mr. MacGregor

The Small Firms Service is providing business advice to applicants for the enterprise allowance. By 19 February, 55 out of the total of 124 applicants had received individual counselling from the service in the North-East Lancashire pilot area.

Mr. Trippier

May I thank my hon. Friend for that encouraging reply and for being instrumental in initiating the scheme? Does he accept that many people in North-East Lancashire are still unaware of the excellent scheme? Will he do all that he can to give it wider publicity?

Mr. MacGregor

I thank my hon. Friend for his comments. As he will know, responsibility for the scheme lies with my right hon. Friend the Secretary of State for Employment, although the Small Firms Service, which is playing an active part, is my responsibility. Credit is also due to my right hon. and hon. Friends for the introduction of the scheme. I note what my hon. Friend says about publicity. Anything that the Small Firms Service can do to publicise the scheme, I shall see is done.

Mr. Arthur Davidson

Does the Minister accept that most people in North-East Lancashire would regard this as a useful little scheme? How many people have so far taken advantage of the scheme instead of merely seeking advice? While on the subject of North-East Lancashire, may I draw the Minister's attention, in the presence of the—

Mr. Speaker

Order. That is better done by a motion. The hon. and learned Gentleman has asked his question. Let us have the answer.

Mr. Davidson

Will the Minister give full development area status to North-East Lancashire? I cannot be more brief than that.

Mr. MacGregor

That question is way beyond the scope of the original question. The scheme has been in existence for only a short time, but already 51 out of a total of 124 applications have gone from the application stage to acceptance. That is an encouraging start.

Mr. Kenneth Carlisle

Will my hon. Friend accept that the enterprise allowance is a major bridge to help people move from unemployment into their own business? Can he say when it will be extended to the rest of the country, as it would be of great benefit also in other parts?

Mr. MacGregor

As my hon. Friend knows, there were difficulties in trying to get a nationwide scheme. It involves many Departments and technical and difficult regulations. We have chosen a pilot scheme, first, to see whether there is a real need, as I believe there is, and, secondly, to see whether we can get over the difficulties. At a later stage we can consider whether the scheme can go much further.

Mr. Greville Janner

Will the Minister consult the Secretary of State for Employment to see whether the scheme can be extended to areas such as the city of Leicester, which is suffering high and unparalleled levels of unemployment, and which has high levels of technology?

Mr. MacGregor

I have explained why it had to be a pilot scheme. My right hon. Friend and I—it was particularly his responsibility—chose areas with high unemployment, where it was thought that the scheme would be of great benefit to people who were redundant and otherwise unemployed and where there was not a battery of other aids available on a significant scale. It was not possible to extend it everywhere.