HL Deb 12 May 1986 vol 474 cc958-60

2.45 p.m.

Lord Rodney

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they are satisfied that sufficient publicity is given to business successes in order to create the right climate to encourage initiative and enterprise.

The Secretary of State for Employment (Lord Young of Graffham)

My Lords, creating the right climate for initiative and enterprise is a prime objective of this Government. It requires many different changes in our society. Attitudes towards business and to success are important elements in creating this climate. In this respect the Government support the efforts of all those involved in Industry Year 1986 in their objectives of emphasising the importance of wealth creation in our society.

Lord Rodney

My Lords, I should like to thank my noble friend the Minister for that Answer. May I ask whether he has seen the excellent leaflet put out by the CBI called British Success? Also, does he think that perhaps the medium of television might be used more to beat the British drum?

Lord Young of Graffham

Yes, my Lords, I have seen the leaflet, and I should like to congratulate the CBI on producing it. But, alas, I often feel that the media—both television and newspapers—are more interested in news stories, and news stories by their very nature are more concerned with failure than they are with success.

Lord Bruce of Donington

My Lords, is the noble Lord aware that his first Answer to the Question put down by his noble friend Lord Rodney gave the true clue to the position, in that he did not in his first reply refer to publicity at all? Is he aware that publicity is not the principal element in creating the right climate? It is, of course, the availability of risk capital at this time. Will the Government give the House the assurance that they will take measures to ensure that more risk capital is readily available at lower rates of interest to the entrepreneurs and inventors concerned?

Lord Young of Graffham

My Lords, if I may confess it to your Lordships, I always try to give a clue to the correct answer in my answers to questions put by noble Lords. In the Answer I gave just now I said it was a prime objective of Government policy to change attitudes, and it is attitudes which must be changed before we come on to the availability of risk capital. Concerning the availability of risk capital, there is no country in the industrialised world which has an equity capital scheme so advantageous as the business expansion scheme. That is a scheme which is being taken up to an increasing extent and one which will have a great deal to do with the future success of our nation.

Lord Molloy

My Lords, will the Minister appreciate that notwithstanding his efforts to reduce unemployment, the real and most massive failure of this Government and of his department is their hopelessness in trying to bring down unemployment, particularly among the youth of Great Britain?

Lord Young of Graffham

My Lords, if the noble Lord were to inspect the youth unemployment figures of countries in Europe he would find that what we are doing certainly bears comparison with the efforts of any other country, without resorting to such devices as conscription. The success of this Government's policies must be looked at in the unemployment figures, and those do not need repetition by me once more.

Lord Kilmarnock

My Lords, since the noble Lord has referred to the business expansion scheme, can he say what changes have been made to it and with what result? Is it not the case that there was some criticism of it in the earlier phases as being not adequately funded?

Lord Young of Graffham

My Lords, that is certainly another question, but changes have been made to the business expansion scheme in order to ensure that we were talking about equity risk capital investments rather than any other form. That, I believe, has been successfully achieved by the last two Budgets.

Lord Harmar-Nicholls

My Lords, is my noble friend aware that people are more likely to risk their capital if they can feel it is still the policy of the Government to reduce taxation if that risk proves to be successful?

Lord Young of Graffham

My Lords, whether or not we reduce taxation—and I certainly hope we do—what governs people's desire to risk their capital is the thought that we shall continue to have a strong and growing economy, and under the policies of this Government we shall assuredly do so.

Lord Mellish

My Lords, is the Minister aware that private enterprise has shown it is prepared to risk capital provided that the Government, for their part, invest money to make land available where that is practicable and to provide the necessary services, and so on? There have been examples of where billions of pounds have been invested by private enterprise—their money for their future—provided that the Government have, in the first instance, spent wisely and well.

Lord Young of Graffham

My Lords, if we wish to come back to the original Question, I am sure all your Lordships will know that the London Docklands Corporation—

Lord Mellish

I did not mention that, my Lords.

Lord Young of Graffham

—is certainly an example of success and is one which receives sufficient publicity.