HC Deb 14 March 1991 vol 187 cc1080-1
2. Mr. Stevens

To ask the Secretary of State for Northern Ireland how many small businesses have been created in Northern Ireland in the last two years; and if he will make a statement.

The Parliamentary Under-Secretary of State for Northern Ireland (Mr. Richard Needham)

This information is not available. However, as an indicator, VAT registrations during 1988 and 1989 show an estimated 7,700 new, mostly small, businesses.

Mr. Stevens

I am grateful for that reply, particularly as I understand that my hon. Friend only arrived back in this country at about six o'clock this morning after trying to promote Northern Ireland in Japan.

Do not the figures that my hon. Friend has quoted confirm the success of the Government's enterprise initiatives in Northern Ireland, and are not they a tribute to the spirit of the people there, who are determined to push aside the effects of terrorism in that Province?

Mr. Needham

Domo arigato gozaimasu Stevens-san. One thousand more new businesses started in the past two years in Northern Ireland than in the preceding two years. Self-employment has risen by 60 per cent. in the non-agricultural sectors since 1981 and the Northern Ireland economy is going through the recession exceptionally well, as evidenced by today's unemployment figures. However, as my hon. Friend remarked, more should and must be done because small businesses are the crucial base for our future expansion. I am confident that new businesses will continue to grow on the basis of our present success.

Mr. Speaker

May I ask the Minister to interpret the first sentence of his answer for Hansard?

Mr. Needham

I said, "Thank you very much."

Mr. Clifford Forsythe

The Minister will be aware that we welcome any businesses coming into Northern Ireland or any businesses that start up in Northern Ireland, but does he agree that the time has come to give local small businesses the same sum per job created as that given to outside enterprises coming into Northern Ireland?

Mr. Needham

It is crucial that we remain competitive with Wales, Scotland, the Republic, Portugal or any other countries in trying to attract business, including outside enterprises coming in to Northern Ireland. We still give considerable incentives to business in Northern Ireland. It is crucial that our help should be directed to marketing, training and improving productivity and competitiveness instead of merely giving grants. The fact that we are moving to a more competitive business environment in Northern Ireland, with more productivity, better marketing and better selling, means that our business is doing better. We shall help small business, but small business must do everything it can to help itself.

Rev. Ian Paisley

I welcome the Minister's remarks, as I welcome everything that is being done to bring small businesses to Northern Ireland. Bearing in mind that the Minister says that we are getting through the recession successfully, perhaps he will deal with the other side of the coin and tell us how many small businesses have had to close down in the past two years?

Mr. Needham

About 6,000 have deregistered in the past couple of years, but that is not a substantially greater figure than hitherto. I repeat that the Northern Ireland economy is growing at a faster pace than that of the rest of the country. That can be seen from the fact that our unemployment figures are hardly rising, if they are rising at all. We have reports from Coopers and Lybrand Deloitte, PA Consultants, even the Northern Ireland Economic Research Council, which is not the most optimistic of bodies, the Trustee Savings bank and the British chambers of commerce stating that the Northern Ireland economy is coming through the downturn in the economy better than any other region—something that has not happened at any time since 1921.