HL Deb 13 May 1999 vol 600 cc1293-4

3.21 p.m.

Lord Campbell of Croy asked Her Majesty's Government:

What proposal they have to reduce the disincentives for small firms arising from regulations under the recent employment legislation, as described by the Better Regulatior Task Force.

Lord McIntosh of Haringey

My Lords, as I said in response to a three-Pour debate on this very subject only yesterday, the Government are committed to tackling barriers to the growth and performance of small firms and are particularly concerned about the impact of regulations. We are reviewing existing regulations so that outdated or unnecessary rules can be struck out. We are taking a strategic approach to regulatory proposals, including EU proposals, which may arise in the future, and we are setting up the Small Business Service which will help small firms meet the demands of regulation.

Lord Campbell of Croy

My Lords, I am grateful to the noble Lord for that comprehensive reply. My Question was of course tabled before the notice appeared announcing yesterday's debate in which the chairman of the task force, the noble Lord's noble friend Lord Haskins, made a notable maiden speech. But did the Government start any action last month when the noble Lord, Lord Haskins, presenting the latest report of the task force, commented that the working time regulations would be a dog's dinner, and called for more clarity and consultation?

Lord McIntosh of Haringey

My Lords, I echo what the noble Lord says about the excellent maiden speech of my noble friend Lord Haskins, which deserves careful study. Certainly the review of the working time directive regulations has been ongoing since they were first introduced. We recognise the force of the task force's criticisms of the regulations, particularly of the explanatory material, and we have been working on them both before and after the publication of the report.

Lord Stoddart of Swindon

My Lords, is my noble friend aware that his statement that future EU regulations will be watched closely is extremely welcome? However, will he go a little further and say that Her Majesty's Government, together with other EU countries, will undertake a full review of all the regulations which have been passed and which are injuring businesses, particularly small businesses?

Lord McIntosh of Haringey

My Lords, I rather think that the Commission and Her Majesty's Government may have to suspend other activities for a period of several months in order to carry out a review of the scope that my noble friend suggests. However, his comments on our proposals are welcome.

Baroness Miller of Hendon

My Lords, further to what the Minister said yesterday in his excellent reply to the debate, and the Answer that he gave to my noble friend Lord Campbell of Croy, will he tell the House why, if the Government are so concerned about small businesses, they turned down the amendments which we tabled in the other place to the Employment Relations Bill to define such a business as one with fewer than 50 employees rather than one with 20, as everyone in this House knows that the provisions of that Bill will be harmful to all small businesses?

Lord McIntosh of Haringey

My Lords, I suppose I ought to declare an interest as one who for many years ran a business with between 20 and 50 employees. However, we do not think that the cut-off point for trade union recognition as it occurs in the Employment Relations Bill should be anything other than it is. I am sure the noble Baroness has read the Financial Times this morning and has seen the report published by the CBI which states that new workplace regulations will not dent competitiveness and in particular points out that smaller and medium-sized businesses are less likely to be damagingly affected by employment regulations than larger businesses.