Deregulation (Hansard, 25 March 1996)

§ 4. Mr. Nigel Evans
To ask the Chancellor of the Duchy of Lancaster what recent representations he has received concerning the impact of his deregulation initiative on small businesses. [20679]

§ Mr. Freeman
We announced a package of new deregulation measures on 11 March in direct response to the concerns raised by small businesses. The package has been widely welcomed by them. It includes a single notification point for tax and national insurance for new businesses, new rights for business in enforcement actions and a pilot scheme to provide at local authority level a single point of reference for development approvals.

§ Mr. Evans
Does my right hon. Friend agree that the Government should protect our small businesses from unnecessary rules and regulations that weigh heavily and on their profitability are of little or no benefit to consumers? Does he further agree that small businesses created an extra 1 million-plus jobs in the 1980s and that, if we lift those unnecessary burdens from them, small businesses will create the extra jobs that we need for the future?

§ Mr. Freeman
I agree with my hon. Friend absolutely. The Conservative party is the party of small business men and women, and so far our deregulation policies have been successful in reducing the burdens on small businesses. I draw my hon. Friend's attention in particular to a new initiative announced recently by my right hon. Friend the Deputy Prime Minister for a new information technology system, the prototype of which is on trial throughout the country, to bring together in a single information point details of all legislation and regulations affecting small businesses. That will be a great step forward and will help the creation of more small businesses.

§ Ms Eagle
In the light of revelations about bovine spongiform encephalopathy, is it not time that the Government stopped pressing ahead with their ideological obsession with deregulation when, by allowing the remnants of animals to be fed to other animals, they have made what may have been a cause for concern into a great cause for concern and possibly destroyed the beef industry in the process? When will the Government realise that deregulation sometimes puts people's lives at risk and causes more expense in the long term? It is about time they apologised to the British people for their disgraceful behaviour.

§ Mr. Freeman
Although it is a matter for my right hon. Friend the Minister of Agriculture, Fisheries and Food and the Meat Hygiene Service, it has always been the view of all Government Departments that we need—and we have—high-quality, cost-effective enforcement of the existing regulations.

§ Mr. Anthony Coombs
Has my right hon. Friend noticed the recent 3i-MORI survey of small businesses 695 which demonstrated the effect of over-regulation on the jobs market? No fewer than one third of the firms surveyed said that they would lay people off directly as a result of the minimum wage that the Opposition would introduce. Is my right hon. Friend aware that the figure rose to 60 per cent. in the north-east and 50 per cent. in the north-west, where unemployment needs to come down the most?

§ Mr. Freeman
My hon. Friend is right, not only about the minimum wage but about the jobs tax from Europe that the Opposition propose to accept when they accede to the social chapter. They are probably not aware that in Germany non-wage costs are almost twice ours and in France they are almost 50 per cent. higher than ours as a direct result of accepting the provisions for higher non-wage labour costs advanced by the European Commission and accepted by those countries.