HC Deb 03 December 1985 vol 88 cc182-3W
23. Mr. Lord

asked the Paymaster General if he will introduce legislation to compel large firms to speed up the payment of small firms' bills.

59. Mr. Cash

asked the Paymaster General if he will introduce legislation to penalise larger businesses which do not pay the accounts of small businesses within a reasonable time.

Mr. Trippier

We are not at present planning legislation on the problem of delayed payment of bills to small firms.

I am currently discussing with industry representative organisations the possibility of promoting good payment practices through cooperation rather than coercion. We expect to produce practical guidance on the subject for both customers and suppliers.

55. Mr. Chope

asked the Paymaster General what is the trend in venture capital investment in small businesses.

Mr. Trippier

There has been significant growth in venture capital investment in the United Kingdom during the last five years. A survey by the United KingdomVenture Capital Report has shown that in 1984 the aggregate amount invested in United Kingdom companies by venture capital organisations was £228 million. This compares with £110 million and £166 million in 1982 and 1983 respectively. Industry sources indicate that some 26.6 per cent. of the amount invested in 1984 supported start-ups or other early stage financings. In addition, direct investment by individuals under the business expansion scheme is providing significant amounts of equity finance for small companies.

60. Mr. Forth

asked the Paymaster General what progress he has made in reducing bureaucratic burdens on small firms.

Mr. Trippier

Considerable progress has been made by a number of Departments towards reducing the burden on business, particularly small firms, of complying with regulations. The White Paper "Lifting the Burden" (Cmnd. 9571) which was published in July recorded the Government's achievements in this area to date and proposed a wide range of further measures to this end which are being actively followed up. We intend to publish a second White Paper on deregulation in the spring.

84. Mr. Norris

asked the Paymaster General how he intends to encourage local enterprise agencies to raise venture capital for small firms.

Mr. Trippier

Local enterprise agencies are well placed to identify sources of equity finance for small firms and to bring firms and potential investors together. My Department, in conjunction with the Department of Trade and Industry, recently issued guidance notes to those agencies considering activities of this kind. My Department has also now issued a leaflet publicising the potential benefits of the business expansion scheme to small firms and investors, which refers to local enterprise agencies as possible contacts. In my discussions with enterprise agencies I shall encourage them to take an active role in this area.