§ 15. Mr. DykesTo ask the Chancellor of the Exchequer what is his assessment of the Coopers and Lybrand report on the venture capital industry. [33420]
§ Mr. JackThe report finds that the United Kingdom venture capital industry is the largest in Europe and has made an important contribution to the growth of most of the venture-backed firms surveyed.
§ Mr. DykesWill my hon. Friend confirm that the Government have given very strong psychological support to venture capital companies, the trust and systems and 463 that the companies promoted under those systems have shown astonishingly above average growth in comparison with general indices?
§ Mr. JackMy hon. Friend is entirely correct. The venture capital trust that the Government have backed has taken £150 million and the enterprise investment scheme is prospering. The British venture capital trust recently commissioned a report from Coopers and Lybrand that showed that over the four years from 1990 to 1995, sales of venture capital-backed companies had risen by 34 per cent.—five times faster than the FTSE 100 companies. That shows the tremendous response of those venture capital companies.