HC Deb 13 November 1990 vol 180 cc437-8
5. Mr. Michael:

To ask the Secretary of State for Employment what fresh initiatives he plans to take to encourage the development of co-operative and mutual forms of employment and ownership.

Mr. Forth

I have announced today that, as part of my Department's general policy to promote small firms, funding has been made available to provide short-term pump-priming support for projects submitted by the co-operative sector. This will be available over the next two financial years specifically for good quality innovative projects to promote co-operatives or to develop business training, advice and other strategies to improve the business performance and competitiveness of co-operatives.

Mr. Michael

I welcome the coincidence of that announcement and my question. Is the Minister aware of the welcome that was given to two commitments by his predecessor, the first being money for the co-ordination of co-operative development work following the demise of the Co-operative Development Agency, and the second being the promotion of co-operative initiatives by the training and enterprise councils? Will he assure the House that he will pursue those two undertakings during his tenure of office?

Mr. Forth

I am grateful to the hon. Gentleman for his acknowledgement of the follow-up to the commitment given by one of my predecessors. I assure the hon. Gentleman that in the guidance to the training and enterprise councils there is explicit acknowledgment of their continuing responsibility to work in this area as part of the follow-up commitment that we gave earlier in the year. I am delighted to be able to give the hon. Gentleman that assurance.

Mr. David Davis

Will my hon. Friend take some care in this area? I remind him of unfortunate precedents, particularly that of the Triumph motor cycle co-operative which, if anything, accelerated the departure of the motor cycle industry from Britain.

Mr. Forth

My hon. Friend makes an important point. I emphasise that there is no intention to encourage such overblown and grandiose schemes. As my hon. Friend probably heard, 1 deliberately used the words "good quality innovative projects" and went on to emphasise elements such as business training and advice. I think that I can give my hon. Friend the assurance that he seeks—there is no way in which we shall get involved in the kind of disasters that overtook the Labour party when in government.