9. Mr. Robert AinsworthTo ask the Secretary of State for Education and Employment what plans she has to improve skills training for small firms. [33206]
§ Mr. PaiceDuring the last 18 months both skills for small businesses and the skills challenge have been targeted at small businesses. Two weeks ago, we announced further measures to simplify and improve our small business support.
Mr. AinsworthThe Minister should be aware that representatives of both the construction and the construction engineering industry have recently been quite scathing about the Government's inability to provide training for small businesses in those sectors. I hope that he will also know that the Select Committee on Trade and Industry recently said that the Government appeared to have no framework for training targeted at small businesses. Is that not disgraceful, given that the Government have lectured us for so long about the importance of small and medium enterprises? When will we hear a little less rhetoric, and see a little action to provide the training that is necessary if small enterprises are to succeed?
§ Mr. PaiceI find it fascinating that the hon. Gentleman quotes the two industries that still retain statutory training boards, which I thought the Labour party always espoused. The statutory boards for the construction and engineering construction industries are responsible for designing policy. As to the future, I said in my first reply that the Government have helped thousands and thousands of small firms through the skills for small businesses support scheme. The skills challenge that we ran last year also enjoyed massive support, and the benefits will be 329 immediately available to the thousands of firms that were involved. The same information will be available to help other small businesses. I remind the hon. Gentleman that nearly one half of all the companies in this country that are committed to the Investors in People standard have fewer than 50 employees.
§ Mr. PaiceThe hon. Gentleman shakes his head, but those are the facts and he should take them on board. The Government have a proud record of helping small businesses in training.
§ Mr. SpringIs my hon. Friend aware of the enormous increase in upgrading skills across the small business community in my constituency, as we know from the Small Business Bureau analysis? The total number of organisations involved in the Investors in People initiative is 22,000, of which nearly half employ fewer than 50 people.
§ Mr. PaiceMy hon. Friend is a champion in the House for small businesses not only in his constituency but throughout the country. He is right to emphasise the importance of the Investors in People standard, which is the most appropriate lever for promoting training in businesses of all sizes. In most cases, the problem is not funding but helping small businesses to make time available and acquire the motivation for training. The usual response from the small business man is, "I am too busy running my business." The Government's policies are aimed at addressing that situation.
§ Mr. ByersCan the Minister confirm that more than half the work force are in firms with fewer than 100 employees? Given the significance of that sector of the labour market, will the Minister explain why, under the Government's public expenditure plans, the small business budget is to be cut next year? Given also the real difficulties that small firms have in training employees, why do not the Government adopt Labour's proposals to target financial assistance on small firms, so that they can be part of the skills revolution that the country needs?
§ Mr. PaiceThe majority of people work for businesses with more than 50 employees, which is why our lifetime learning targets—as part of our national education and training targets—are aimed at that size of business and beyond. That is the way to connect with the large number of people working in sizeable businesses and helping the majority of employees. The hon. Gentleman suggests that the Government should copy Labour party policies. If he thinks that we are going to introduce compulsion, which is Labour's policy for small businesses, so that young people will be let off and sent to college—
§ Mr. BlunkettYes, in the case of 16 and 17-year-olds.
§ Mr. PaiceThe hon. Gentleman says yes. Labour would require small firms—not encourage or persuade—under threat, to let young people go to college. That would destroy employment opportunities for tens of thousands, if not hundreds of thousands, of young people.