HC Deb 18 December 1997 vol 303 cc468-9
2. Dr. Iddon

What action her Department is taking to encourage financial institutions to invest in high-technology companies. [19868]

The Minister for Small Firms, Trade and Industry (Mrs. Barbara Roche)

The Government believe that high-technology, growth firms are one of the keys to building a successful modern economy. The Department of Trade and Industry has frequent contact with financial institutions and their representative bodies to discuss the financing of growth companies and to ensure that Government policies encourage such investment. The DTI is also supporting a number of general and sectoral initiatives that will help emerging growth companies to access appropriate packages of private sector finance.

Dr. Iddon

I thank my hon. Friend for that answer and also for the fact that this Government have clearly shown that they are committed to the promotion of high technology. Does my hon. Friend welcome the recent formation of the McCullagh group, which will bring high-technology companies much closer together with the financial institutions that have the money to invest in their work?

Mrs. Roche

Yes, I certainly do. The new Government very much bear in mind the excellent reports produced by the Confederation of British Industry and the Bank of England in that area. I was anxious that we should take quick action, which is why I am delighted to tell the House that we have formed the tech-stars steering group as well, to work alongside the other group, so that we can help that vibrant sector, which has the ability to win for Britain. I am also delighted to be able to say that the first meeting, which I attended, has taken place.

Mr. Jenkin

How does it encourage financial institutions to invest in high-technology companies if their dividends are taxed by the abolition of tax credits?

Mrs. Roche

The hon. Gentleman must really think of some better points—[Interruption.] I know that Opposition Members are a little restive to get up for Christmas, but the House still has some serious work to do. What is important is to ensure that we have stability over the long term and a strategy that is geared to long-term investment. That is exactly what my right hon. Friend the Chancellor is about and that is why British business has so warmly welcomed all the measures that he has taken.