Small Firms (Hansard, 27 July 1983)

§ 10. Mr. Burt
asked the Secretary of State for Trade and Industry if he is satisfied with the outcome of the recent small firms publicity campaign.

§ Mr. Trippier
Yes. The recent small firms publicity campaign has generated more than 130,000 responses. I intend to analyse those responses further to show the extent to which the campaign has raised awareness of the assistance available, but I am satisfied with the level of interest generated.

§ Mr. Burt
Although the Government's attitude to small businesses, entrepreneurs and privately owned business generally is superior to the abuse and unconcern demonstrated over the years by the Labour party, does not my hon. Friend's answer show how necessary the publicity campaign was? What further publicity is planned?

§ Mr. Trippier
I agree with my hon. Friend that, in view of the importance of small firms to the economy, it was essential for them to use the resources available from the Government. There was clear evidence that comparatively few small business men or their professional advisers, such as accountants and solicitors, were aware of the many schemes available to help them, including loans and advisory services. I shall be considering my hon. Friend's latter point after analysing the response to the campaign, but I assure him that the booklet "How to Make Your Business Grow", which was one of the most successful publications to come out of a Government Department, will continue to be available.

§ Mr. Pavitt
Will the Minister take this opportunity to pay tribute to the Co-operative Development Agency, which successfully helped to set up 700 small cooperatives, mutually owned and controlled, while at the same time extending its influence across the country to the provision of services and productive enterprises? Will he assure the House that he will accept permanent responsibility for the continuation of the Co-operative Development Agency?

§ Mr. Trippier
The hon. Gentleman may perhaps have missed the point of the question of the hon. Member for Wolverhampton, South-East (Mr. Edwards), in reply to which I said that I was currently reviewing the CDA. It is too early at this stage to speculate on the outcome of that review.

§ Mr. Nicholas Winterton
Does my hon. Friend consider that the banking system has aided the Government in their campaign to help smaller businesses? Does he not share my concern that many banks have withdrawn support prematurely from many small firms, resulting in their liquidation and many redundancies? Does he not feel that, far from providing risk capital, banks are now concerned only about making more and more money by transferring money from one country to another, rather than investing in manufacturing industry which, in spite of what my right hon. Friend said, is the real creator of wealth?

§ Mr. Trippier
My hon. Friend will not be surprised to learn that I do not agree with him at all. Were it not for the clearing banks, we would not have received such assistance as has been given with the loan guarantee scheme, which so far has proved an enormous success.

§ 11. Mr. Marland
asked the Secretary of State for Trade and Industry if he has plans to extend the small business service.

§ Mr. Trippier
We are just about to complete the strengthening of the small firms service in anticipation of the introduction of the enterprise allowance scheme nationwide on 1 August.

§ Mr. Marland
Is my hon. Friend aware of just how popular this service is among small businesses? Is he satisfied with the number of small business counsellors employed in the service, not only throughout the country but in the south-west of England especially?

§ Mr. Trippier
I am grateful to my hon. Friend for his kind remarks. I, too, congratulate the small firms service on its high standard of professionalism and excellent performance. Currently, the Department has 258 business counsellors under contract in England—32 in the southwest.

§ Mr. Batiste
Does my hon. Friend recognise the importance to small businesses of a high input of technical information? Will he therefore confirm the Government's intention to encourage the continuing development of links between the universities and small businesses? When does he expect to be able to respond to the report of the advisory committee on applied research and development?

§ Mr. Trippier
On my hon. Friend's last point, I understand that a reply is expected within the next three months. I fully support all that he said in his supplementary question.