Deregulation Unit (Hansard, 12 February 1992)

§ Mr. Hague
To ask the Secretary of State for Trade and Industry if he will make a statement on the work of his Department's deregulation unit.

§ Mr. Redwood
The Government have a strong programme of deregulatory work. I will announce shortly the work programme for the coming year. Removing or reducing burdens on business is vital to successful enterprise policies.

§ Mr. Hague
I congratulate my hon. Friend on his work so far. Does he agree that minimising the regulatory burden on business is a worthy objective for any Government? Would not it be a disaster for business throughout the country suddenly to be confronted by a long list of new regulations and constraints? I refer to social audits, contract compliance agencies, work force monitoring, compulsory disclosure of information, minimum wages, equality tribunals and many other Opposition ideas.

§ Mr. Redwood
That is a forbidding and worrying list for all business people. One of this country's great strengths is that the burdens imposed by the Government on employing people are much lighter than in France and Germany. That is why we enjoy higher inward investment compared with those two countries. Labour Front-Bench spokesmen think that that is amusing. They do not understand the importance of keeping costs under control, and of making sure that the Government do not impede enterprise.

§ Mr. Flynn
As an apostle of deregulation, will the Minister investigate why British Transport Advertising has banned British Medical Association advertising that seeks to discourage smoking by young people when, at the same time, the tobacco industry spends £300 million on advertising—

§ Mr. Speaker
Order. I do not think that we need visual aids.

§ Mr. Redwood
I do not see how I can answer the question as I could not see properly the document that the hon. Member was waving.

§ Mr. Speaker
We proceed here by speech, not by visual aids.

§ Mr. David Shaw
Can my hon. Friend confirm that when he announces new proposals for deregulation he will 968 ensure that he and his officials have consulted the Minister for small businesses to see that every effort is made to take into account the needs of small businesses and that deregulation, wherever possible, is increased, so that small businesses can get special exemptions where possible from what can be very complicated regulations and procedures that the Government introduce?

§ Mr. Redwood
I give my hon. Friend that assurance. Much practice in the past year or two has reflected just that process, after a good deal of consultation with small businesses. They have been exempted from certain reporting requirements by my Department under the companies legislation, and my right hon. Friend the Chancellor of the Exchequer put a lot of measures in last year's Budget to improve the position of small businesses, because tax is revealed to be one of their most noticeable problems when they reply to our consultations.

§ Ms. Mowlam
When the Minister reviews the business regulations will he consider extending that review to the regulation of financial institutions, in view of the problems with the collapse of Guinness III and the potential collapse of Guinness II, and in view of the serious difficulty with fraud regulation at present, particularly now that only three people will be going to gaol for a shorter time than the whole of the Guinness trial was taken, with one of them, Mr. Ernest Saunders, whose sentence was reduced because of ill health, on the national media this morning in blooming health and protesting his innocence?

§ Mr. Redwood
I do not intend to comment on individual cases before the courts. The general principle of the Government's policy is clear: we will ensure that people who commit fraud and swindles are brought to book through the courts. My right hon. and noble Friend the Lord Chancellor has recently made statements, and was on the radio this morning, about the review that he is conducting of how court procedures can be improved. The House can rest assured that the Government will take every action possible to bring villains to book. We will not tolerate them.