HC Deb 01 November 2001 vol 373 cc986-8
2. Brian White (Milton Keynes, North-East)

What assessment she has made of the operation of the Small Business Service. [9548]

The Parliamentary Under-Secretary of State for Trade and Industry (Nigel Griffiths)

The Small Business Service is helping to build an enterprise society in which small firms of all types can thrive. Among its achievements in the first 18 months is the raising of £100 million for early-stage high-technology businesses. Other achievements are set out in the annual report, which is in the Library.

Brian White

The Minister will know that the success of Milton Keynes is largely based on small firms coming to the area, supported by agencies in the public and private sectors. The business plan for the local small business service is based on that same ethos of partnership. Will he ensure that the local service holds to those commitments and give an assurance that the money will go to companies and not into bureaucracy?

Nigel Griffiths

I am certainly concerned about the underspend on operational costs in Milton Keynes, and I am monitoring the performance of Business Links. However, I am delighted by the quality of the support given to local firms that are badly affected by foot and mouth in my hon. Friend's area, such as Hot Air Balloon Adventures. The company informed me this morning that help from Business Links solutions was vital in assisting its survival and recovery.

Brian Cotter (Weston-super-Mare)

I think that the Minister will agree that we all hope that the Small Business Service will be truly effective. Many residential homes in my constituency are concerned about the national minimum standards being imposed by the Government. The Small Business Service should act on their behalf, but in this case it has shown its ignorance of the Department of Health's consultation process. In fact, the official report of the Small Business Service to the Department shows that the service has been seeking business representation on a strategic group that does not even exist.

Nigel Griffiths

I am sorry to hear of any constituency concerns about the Small Business Service; it has given us very good service during the past 18 months. I am sure that better is to come and I am happy to take note of the hon. Gentleman's comments and to consider the matter. During the past quarter alone, the Small Business Service has helped more than 130,000 businesses through the advice given by Business Links.

Mr. Harry Barnes (North-East Derbyshire)

Some small businesses are providers of services to people with individual learning accounts. Did the Department of Trade and Industry or the Small Business Service have any input in the recent decision of the Department for Education and Skills to stop taking new recruits for the ILA programme on 7 December? If so, was it not undiplomatic for that Department to send letters to small businesses telling them not to rush people into new, inappropriate accounts? After all, not all small businesses are run by cowboys.

Nigel Griffiths

I recently met the Under-Secretary of State for Education and Skills, my hon. Friend the Member for Wentworth (John Healey), who has responsibility for that sector. We agreed that the help given to people should be constantly monitored, updated and improved. With the aim of improving the available services, I have certainly noted the comments of my hon. Friend the Member for North-East Derbyshire (Mr. Barnes). I know that my hon. Friend the Under-Secretary is also aware of the matter and is looking to ensure that an effective programme is improved and continues to provide a good service for all our constituents.

Mr. Philip Hammond (Runnymede and Weybridge)

Will the Minister tell the House what advice he has received from the Small Business Service about the likely impact on small and medium-sized enterprises of the removal by the European Parliament of the concessions for smaller businesses in the information and consultation directive? That concession was brokered by the UK Government. Would it be too much to ask that in future, when the British Labour Government negotiate concessions in Brussels for the benefit of British business. Labour MEPs vote for them, not against them?

Nigel Griffiths

The hon. Gentleman gave us the position of the European Parliament, but there has been no change in the agreement on the common position on that matter. Indeed, I met Commissioner Liikanen last week in Brussels to discuss the strong representation that we and other member states are making to ensure that small businesses can thrive and grow in the EU.