HC Deb 18 June 1986 vol 99 cc1027-9
1. Mr. Bright

asked the Secretary of State for Trade and Industry what representations he has received about his Department's latest plans for reducing the burdens on small firms.

The Minister of State, Department of Trade and Industry (Mr. Peter Morrison)

My Department's plans, together with those of other Departments, for reducing burdens on both small and large firms are outlined in the recently published White Paper "Building Businesses … Not Barriers". I have to date received no representations arising from the White Paper.

Mr. Bright

Is my hon. Friend happy that there is adequate liaison between his and other Departments of State, in particular the Department of Employment, which inherited the small firms unit? Is there still the will and momentum to rid small businesses in particular of petty burdens, which is probably the most significant factor nowadays deterring people from going into business?

Mr. Morrison

I can assure my hon. Friend that there certainly is the will and commitment to continue with a deregulation policy. My hon. Friend the Minister for Trade and I were, as my hon. Friend will appreciate, originally in the Department of Employment, so on that level there is good liaison. In addition, three Cabinet Ministers—my right hon. Friends the Secretary of State for Trade and Industry and the Secretary of State for Employment and my right hon. and learned Friend the Paymaster General — are involved in the deregulation process.

Mr. MacKenzie

Is the Minister aware that one of the biggest problems faced by small firms in Britain is that of cash flow? It would be of great practical assistance to them if he could lift the four-month moratorium on the payment of regional development grants and other forms of financial assistance to small firms.

Mr. Morrison

I hear what the right hon. Gentleman says about the moratorium, but he will appreciate that the regional development grant scheme is demand led. However, I shall look at the point that he has made.

Mr. John Browne

Does my hon. Friend accept that the greatest disincentive to the creation of small businesses, as shown in recent studies, is not a lack of capital, or indeed a lack of markets, but the administrative burdens placed on smaller businesses? Does he further accept that the Government have done a great deal in that respect already, but much still needs to be done? Will he look earnestly at and accept the recommendations of the Conservative Back-Bench small business committee?

Mr. Morrison

I agree that administrative burdens are one of the disincentives to setting up new businesses, but the other significant point is the attitude towards small businesses. My right hon. Friend the Prime Minister has changed that attitude and there is definitely a feeling that small businesses should he encouraged and persuaded to set up and to prevail and prosper. I hope that it goes without saying that we listen carefully to any proposals put by my hon. Friend and his colleagues on the small business committee.

Mr. Ashdown

Is the Minister aware that the new Data Protection Act 1984 has placed considerable burdens on small firms, especially those seeking to use the new technologies to make themselves more efficient? Has his Department made any recommendations to the Home Office on how those burdens might be reduced or simplified in favour of small firms?

Mr. Morrison

I am aware of the concern that the hon. Gentleman has raised, but, as he will appreciate, we must conform with what our European colleagues have agreed. However, the matter is kept under review.

Mr. Brandon-Bravo

As my hon. Friend will not reach Question 26 on the Order Paper this afternoon on precisely this subject, may I ask him whether he plans to make any changes in the accountancy rules for small businesses'?

Mr. Morrison

My hon. Friend is a pessimist in these matters. I hope we can progress speedily and that we shall reach Question 26. My hon. Friend the Parliamentary Under-Secretary of State has direct responsibility for these matters and I expect that he will make an announcement in the not-too-distant future.

Mr. Eastham

When, in due course, the Minister considers these matters, will he also consider the matter of selective assistance in cases where grants are not mandatory? Some firms fill in forms for civil servants, wait about six or seven months and then find that they do not qualify for grants. Is it not about time that we did something about this?

Mr. Morrison

The hon. Gentleman raises a perfectly fair point. He probably realises, just as the House realises, that a review of regional grants and regional selective assistance is currently taking place. We are certainly looking at the precise point that he has mentioned. By and large, I receive many more plaudits than criticisms. Of course, there may be the odd reason for criticism. As I say, we receive mainly plaudits because the officials in my Department and in the regional offices are generally speaking, considered by all and sundry who apply for grants to be efficient and helpful in the processing of the necessary forms.

Mr. Thurnham

May I ask question No. 24? I hope that we shall reach question No. 24. May I ask my hon. Friend to have a word with his right hon. and learned Friend the Solicitor-General about the provisions of the Latent Damages Bill which require firms to keep records for 15 years? Does my hon. Friend not agree that that is an excessive period for small engineering and other firms?

Mr. Morrison

I am hopeful that we shall reach question No. 24. My hon. Friend asked about the Latent Damages Bill. I do not pretend to be expert on that, but of course I shall raise the matter with my right hon. and learned Friend the Solicitor-General, and no doubt he and my hon. Friend could discuss the matter further.

Mr. John Smith

In expressing our understanding of the very sad reason why the Secretary of State is not able to be with us today, may I ask the hon. Gentleman to express to the Secretary of State and his family our very deep sympathy and condolences?

Mr. Morrison

I am most grateful to the right hon. Gentleman for what he said, and I shall certainly pass on his message.