§ 2.40 p.m.
Baroness VICKERSMy Lords, I beg leave to ask the question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government how the increase in the number of bankruptcy petitions last year—24 per cent. in the High Court and 25 per cent. in the county courts—compares with that in other EEC countries.
Lord ORAMMy Lords, I regret that figures comparable with those for bankruptcy petitions in the United Kingdom are not available for other EEC countries.
Baroness VICKERSMy Lords, may I ask the noble Lord whether, in planning their future programme of finance for this country, the Government will give consideration to these small firms and others which have been made bankrupt? Would not the noble Lord agree that, if something of the kind is not done, such bankruptcies will hit the economy of this country and also create further unemployment?
Lord ORAMMy Lords, I think the Government are doing a great deal, through the Department of Trade, to encourage and help the development of small firms.
§ Baroness ELLESMy Lords, could the Minister say why these figures are not available? Is it just that they have no comparable courts and that there are no comparable bankruptcy petitions? Or are the Government not willing to give figures of bankruptcies in other EEC countries?
Lord ORAMNo, my Lords, the answer is in accordance with the first suggestion which was made by the noble Baroness. It is quite impossible to relate one set of figures to another. In this country there are three categories of insolvencies; that is, individuals, unincorporated companies and incorporated companies. Whichever way you play this, you cannot get a comparable figure for other countries.
§ Lord ORR-EWINGMy Lords, without relating it to the EEC, can the noble Lord tell us what percentage of these bankruptcies apply to small businesses, as defined in the Bolton Report? Also, does not the noble Lord agree that they make a very worthwhile contribution to our industrial innovation, and therefore deserve an alleviation of some of the more tiresome forms of taxation and every possible encouragement?
Lord ORAMMy Lords, in answer to the noble Baroness, I indicated my attitude to the second part of the noble Lord's question. In relation to the first part, I am afraid that I should need notice on the question of figures for small as against larger concerns.