Small Businesses (Hansard, 7 February 1994)

§ Mr. McLoughlin

The British Standards Institution's policy committee for small businesses, chaired by Mr. Roger Dunn, has prepared a report on the application of BS5750, the standard for quality management systems, to small firms. The report is published by BSI today and a copy has been placed in the Library of the House.

BS5750 is a voluntary standard developed by industry. Many United Kingdom businesses have found it advantageous as a management tool. The report recognises this potential benefit and the overall contribution of the standard to higher and consistent quality in the provision of goods and services. It concludes that the underlying principles are equally applicable to large and small businesses, but that small businesses face particular problems in the course of preparing for and obtaining certification.

The committee notes that a number of research projects in this field have yet to be completed but goes on to make a number of provisional recommendations to Government, BSI and others. I have discussed these issues with BSI and my officials have consulted other interested parties.

I accept the recommendation addressed to my Department concerning consultant registration. My right hon. Friend the President of the Board of Trade has already announced to the House on 7 December Official Report, column 154, a new consultancy brokerage service which will include computer listings of consultants offering advice on quality improvement. This service will itself operate under a quality assured system which will at least maintain, and where possible build upon, the high standards established under the enterprise initiative consultancy scheme. In particular, we shall ensure that the methods used in selecting consultants who apply to be listed will continue to be rigorous. The new service will actively promote BS5750 certification among management 3W consultants in general and ensure that potential clients are made aware of those listed consultants who have themselves already achieved certification to that standard.

We have also agreed to take the lead in a number of other areas. We shall take action as soon as possible, within the managing in the 90s programme, to publish guidance on BS5750 for small firms and for purchasers. We shall facilitate, through business links, the development by training and enterprise councils, chambers of commerce and others of local self-help schemes for small companies. We shall continue to contribute to the cost of research into the difficulties of small firms in this field and will seek a suitable forum for continued oversight of these issues. We shall also ensure that the European Commission is alert to the problem.

The report recommends action by certification bodies and the National Accreditation Council for Certification Bodies and urges them to adapt their assessment procedures and to consider how fees and charges for small firms can be modified. My Department has consulted these bodies, who have welcomed the report and its recommendations. The NACCB-Association of British Certification Bodies small firms working party and individual certification bodies are actively preparing positive responses on these aspects.