HC Deb 11 May 2000 vol 349 cc998-9
5. Mr. Chris Pond (Gravesham)

What assistance he proposes for small and medium-sized enterprises in Kent Thameside. [120509]

The Minister for Small Business and E-Commerce (Ms Patricia Hewitt)

The Business Link network provides a range of advice and assistance to small and medium-sized enterprises in Kent Thameside, including guidance on IT, exporting and sources of finance.

Mr. Pond

I thank my hon. Friend for that answer. I know that she and her colleagues worked hard to win assisted area status for Kent Thameside and other parts of north Kent and that she shares my disappointment at the European Commission's rejection of those proposals. Will she consider other ways in which we can help small and medium-sized enterprises in my constituency—and in Kent Thameside generally—to unlock the potential for prosperity and employment that we know exists there?

Ms Hewitt

I do indeed share my hon. Friend's disappointment and that of small businesses in his constituency that we were not able to include Medway and Gravesham in the assisted areas map. However, I can confirm that all the areas that were previously proposed for tier 2 status will be designated as tier 3 areas. Small businesses in Medway and Gravesham will therefore be able to apply for enterprise grant schemes. That will undoubtedly help many businesses to thrive in future.

Mrs. Angela Browning (Tiverton and Honiton)

Now that Medway and north Kent have lost their assisted area designation, will the Minister explain to small businesses in Kent a letter that Commissioner Mario Monti sent to the Conservative leader of Kent county council? It states: the UK failed to notify its proposal for the new regional aid map in time. In fact, we had asked Member States as early as February 1998 to submit their new maps by March 1999. The UK did not notify until July 1999 and its proposal raised important questions as regards its compatibility with the state aid rules on national regional aid. We have been round this course before. The Secretary of State does not know what he is doing on regional aid. Is not it time that he rolled up his sleeves and learned the discipline of delivery on time?

Ms Hewitt

I think that the hon. Lady is in danger of getting her record stuck. We submitted our proposals for the assisted areas map in line with the timetable that was agreed with the Commission. Of course we were disappointed that we were unable to include all the areas that we would have liked because of the need to reduce population coverage and to satisfy the Commission on the point about which it came back to us—whether or not Gravesham and Medway constituted a self-contained area.