HC Deb 24 November 1993 vol 233 cc434-5
1. Mr. Bates

To ask the President of the Board of Trade if he will make a statement on the progress of deregulation proposals.

The President of the Board of Trade and Secretary of State for Trade and Industry (Mr. Michael Heseltine)

As announced in the Gracious Speech, we will introduce a major Bill to deregulate and to remove obstacles to contracting out by central and local government.

Mr. Bates

I thank my right hon. Friend for that answer. Is he prepared to consider giving priority to deregulation in the small business sector because while many large corporations and institutions believe that they may have the structures to support unnecessary bureaucracy, to the small business man and the entrepreneur that bureaucracy can often be the difference between success and failure?

Mr. Heseltine

My hon. Friend clearly understands the problem. In all the work of my hon. Friend the Member for Tatton (Mr. Hamilton) on the deregulation initiative, we have ensured that small business representatives have been included in the consultative process.

Mr. Malcolm Bruce

May I follow the hon. Member for Langbaurgh (Mr. Bates) and ask whether the President of the Board of Trade accepts that many small businesses feel that the imposition of statutory sick benefit, the draconian penalties in relation to VAT collection and the collection of statistics for exports, which deter small companies from seeking export business, should be considered as part of the deregulation programme and not just aspects that affect consumer protection or health and safety?

Mr. Heseltine

The hon. Gentleman is out of date because we have made significant exemptions in respect of the VAT system for small businesses.

Mr. Spring

Is my right hon. Friend aware of how much unnecessary red tape and bureaucracy emanates at local level? Will he assure the House that, as he seeks to encourage deregulation, local government plays a part in that important process?

Mr. Heseltine

My hon. Friend raises an important point and the answer is yes.

Mr. Robin Cook

Is the President of the Board of Trade aware that of the regulations that he is reviewing as a burden on business, 71 per cent. have been introduced since the Conservatives took office and 21 per cent. since the Prime Minister took office? Has anybody told him that the second largest number of regulations are in the DTI, of which 84 per cent. have been introduced since the Conservatives took office, 27 per cent. since the Prime Minister took office and 13 per cent. since he became President of the Board of Trade? As the overwhelming majority of the burdens on business have been introduced by the Conservatives, is there no one in the Conservative Government willing to defend their record of 14 years of regulating that includes the record of the President of the Board of Trade?

Mr. Heseltine

I am grateful to the hon. Gentleman. That is excellent news and shows how determined we are to continue improving our performance.