Small Businesses

HC Deb 11 May 1994 vol 243 cc302-3

2. Mr. Streeter

To ask the President of the Board of Trade if he will make a statement on measures he plans to assist small businesses.

The Parliamentary Under-Secretary of State for Technology (Mr. Patrick McLoughlin)

The Government recognise the crucial role played by small firms in the United Kingdom economy. The Government help small firms by keeping inflation and interest rates low and by reducing legislative and administrative burdens. They also provide direct assistance where appropriate and are currently establishing a network of Business Links to provide high-quality business support across the country.

Mr. Streeter

I thank my hon. Friend for his reply. Is he aware that many businesses in the west country are well served by the low interest rates, low inflation and freedom from the job-destroying social chapter that the Government have brought about? Does he agree that what many small businesses now want is the early introduction of the Deregulation and Contracting Out Bill to blast away much of the red tape that is ruining their lives? Is not it a great pity that Opposition Members continue to delay and oppose that measure?

Mr. McLoughlin

I am grateful to my hon. Friend; I entirely agree with him. The House debated the Bill yesterday, and I hope that it will complete its stages tomorrow.

Mrs. Mahon

One traditional small business is the British pub. What will the Minister do to stop what is happening to it? What will he do to stop cheap imports, investigate the leases that are doing so much damage and prevent rents from going through the roof? Pubs are an endangered species, and the Minister is responsible.

Mr. McLoughlin

In fact, the brewing industry has invested a tremendous amount in new pubs—as the hon. Lady would see if she visited a few.

Mr. Nicholas Winterton

Industry as a whole is immensely grateful to the Government for the steps that they have taken in respect of Business Links and other measures. More export credit is now available to smaller businesses, for instance. Is my hon. Friend aware, however, of the press release issued today by the Engineering Employers Federation? He certainly should be, as one of his colleagues from the Department was present for the federation's breakfast-time briefing.

According to the federation, industry believes that moves such as a further improvement in export credit and 100 per cent. capital allowances would benefit industry immensely, giving it the fillip that it needs so desperately in order to contribute further to the improvement of the British economy.

Mr. McLoughlin

I am grateful to my hon. Friend for what he said about Business Links. He has been fortunate, in that one of the first Business Links in the country serves his own constituency. I am glad that he recognises the important role that such links will play in providing for the competitiveness of the United Kingdom. It is, I think, no secret that my right hon. Friend the President of the Board of Trade intends to publish a White Paper on competitiveness in the near future.

Mr. Fatchett

The Forum of Private Business estimates that small firms are owed £50,000 million in late payments, and every survey of small firms suggests that late payment is their key problem. When will the Government act, and introduce a statutory right to interest on late payment? Why is theirs the only major political party that does not support such a measure? Is it simply because they are so in hock to large companies and other contributors to their funds that they cannot help small business?

Mr. McLoughlin

That is absolute rubbish. We issued a consultation paper last November; the hon. Gentleman just needs to wait a little while.

Mr. Butcher

Does my hon. Friend agree that, in so far as small manufacturing businesses are capital intensive —in contrast to small service industries—the abolition of capital gains tax would have a particularly beneficial effect on the unquoted manufacturing sector? As a Minister in the sponsoring Department, and as one who cares passionately about these matters, will my hon. Friend ask the Department's economists to investigate? There is now a growing suspicion that the abolition of capital gains tax could provide the biggest job creation programme that the country has seen in 20 years.

Mr. McLoughlin

I am grateful to my hon. Friend. I am always willing to consider the points that he makes, but he will appreciate that his question is a matter for my right hon. and learned Friend the Chancellor of the Exchequer. It will probably be one of the first of many Budget submissions to my right hon. and learned Friend.