HC Deb 23 November 2001 vol 375 cc559-60W
Brian Cotter

To ask the Secretary of State for Trade and Industry what progress has been made in implementing the principles behind the European Charter for Small Enterprises in the United Kingdom. [13682]

Nigel Griffiths

The UK is firmly committed to a full implementation of the European Charter for Small Enterprises. We believe that since its adoption in June 2000 useful progress has been made in the United Kingdom under all 10 lines for action contained in the charter. Recent examples include proposals for the revision of company law, proposals for the reform of competition rules and insolvency law, continuing action under the UK online for business initiative, and the opening of the 'smallbusinesseurope' office in Brussels. Details of these and many other relevant UK actions can be found in a recent report provided to the European Commission, entitled "The European Charter for Small Enterprises—A Review of relevant actions and measures in force in the United Kingdom". Copies of this report have been placed in the Library of the House. At a wider European level, the UK co-organised with the European Commission a conference on top-class business support services in Cardiff in October.

While we believe that real progress has been made in some areas, we recognise that more needs to be done if we are to meet our own and the EU's goals for creating the best possible environment for small firms. We will continue therefore to take action which will help us and encourage our European partners to achieve these goals.

Brian Cotter

To ask the Secretary of State for Trade and Industry what assessment she has made of the principle embodied in the European Charter for Small Enterprises relating to the exemption of small enterprises from certain regulatory obligations. [13683]

Nigel Griffiths

The Government agree with the principle embodied in the European Charter for Small Enterprises that legislative simplification can help reduce the burden of compliance for small business. In the UK the approach has been to adopt "Think Small First" principles—all those considering regulation must first consider alternatives to regulation as well as whether exemptions for small firms are appropriate, the case for exemptions for small firms from regulatory obligations is then made on a case by case basis.

Exemptions for small enterprises from certain regulatory obligations can be a useful way of reducing burdens on business e.g. on audit thresholds, the requirement to consult on redundancies, the need to have works councils and most recently the draft Information and Consultation Directive. There are a range of regulations, such as those relating to food safety, the national minimum wage, environmental protection and health and safety where this is less likely to be appropriate (because of the need to safeguard the rights of employees and protect consumers) and may in fact create a barrier to growth for small firms.