National Consumer Council (Hansard, 14 June 1995)

§ 14. Mr. Martyn Jones
To ask the President of the Board of Trade what further discussions he has had with the National Consumer Council of the impact on the service that it provides of the reduction in its budget since 1993. [26817]

§ 15. Mr. Win Griffiths
To ask the President of the Board of Trade what further discussions his Department 791 has had with the National Consumer Council on the reduction in its service following his budget cuts. [26818]

§ Mr. Jonathan Evans
My Department is in frequent contact with the National Consumer Council and has regular discussions on all issues of mutual interest, including the council's work programme and budget.

§ Mr. Jones
Does the Minister think that, by cutting the budget of the National Consumer Council, he will stifle its criticisms of the Government's policy? What message does he think that that will give to British consumers?

§ Mr. Evans
I do not believe that. The purpose of the decision made in 1993 to reduce funding by about 25 per cent. in three years is to help the National Consumer Council to develop a more focused approach to its work. The hon. Gentleman needs to recognise that, until that time, the council had had an 80 per cent. real terms increase in its grant. In the changing circumstances, the time had clearly arrived for a more focused approach on its part. I am pleased to see that that is being adopted.

§ Mr. Griffiths
The Minister referred to the ups and downs of the financing of the National Consumer Council. Is he aware, for example, that in that more focused approach to which he referred, housing and education matters have been dropped from the council's inspections? Does he think that that is a retrograde step? If the Government's finances get better, will he commit himself to restoring the funds cut from its budget?

§ Mr. Evans
The Government are committed to assisting the National Consumer Council to develop a focused approach. I said earlier that the announcement made in 1993 followed a period in which the amount of grant made available increased by 80 per cent. in real terms. Ninety-one per cent. of the spending of the NCC is grant in aid from the Government, and it is our view that an additional proportion of funding could come from other sources. That is another part of the approach that the Government have adopted. In developing negotiations with the NCC, the Government announced an additional grant of £291,897 at the end of last year to ease the process of transition.