§ Mr. Skeetasked the Secretary of State for Trade and Industry if he will list the 25 recommendations in the Bolton Report upon which the Government have announced a decision, specifying the ones the Government accept and those which can be implemented without legislation.
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Organisation in Government (A)(B) 1. A Small Firms Division should be created within the Department of Trade and Industry, responsible for the development. inter-departmental co-ordination and implementation of policy towards small firms and for the administration of such official services as are provided for them. (A)(B) 2. A Minister of the Department of Trade and Industry should be expressly designated as the Minister responsible for small firms and oversee the work of the Division. (A)(B) 3. So far as is possible the separate identity of the Small Firms Division should be stressed and publicised. (A)(B) 4. All other departments with trade or industry sponsorship functions should designate an official with specific responsibility for liaison with the Small Firms Division of the Department of Trade and Industry, and for his department's policy towards small firms. Taxation (A) 5. We hope that when the rate for the new-style corporation tax is finally determined, account will be taken of the fact that the 50 per cent. rate suggested in the Green Paper would involve an additional burden on the small company, which because of its dependence on self-financing makes a lower average distribution than the larger company. (A) 6. Shortfall assessment on the trading income of close companies should be abolished, and no parallel provisions should be included in the forthcoming revision of corporation tax. (A) 7. Section 20 of the Finance Act 1969, which disallowed interest on loans for the purchase of interests in close companies as a deduction from income for tax purposes, should be repealed. (A)(B) 8. The extra-statutory concession for loans made by close companies to pay estate duty should be continued and made as widely known as possible. Training (A)(B) 9. We believe that the machinery set up under the Industrial Training Act is fundamentally inappropriate to the needs of most small firms and we therefore recommend that they should be exempted from the levy/grant system. Each training board, in consultation with the industry and the Department of Employment, should formulate an appropriate definition of the small firm in its industry and should establish an exemption limit designed to exempt them all from levy. Firms below these limits should be permitted to "opt in" to the levy/grant system if they wish. Training boards should consider the possibility of providing training services for small firms on a fee-paying basis. Statistical Surveys (A)(B) 10. The effect on small firms of all statistical surveys should be carefully considered and every effort made to extend the present practices of sampling and of exemption of smaller firms wherever possible. (A)(B) 11. The Survey Control Unit of the CSO should be given power to amend or veto all statistical surveys not meeting with its approval on grounds of expense, necessity, coverage or design. (A)(B) 12. This power should extend to all departments of Government and to those quasi-Government. bodies which commonly issue statistical enquiries. (A)(B) 13. The use of statutory powers for the collection of statistics should be strictly controlled and in all cases explicitly justified. (A)(B) 14. It should be clearly stated on every statistical enquiry whether or not its completion is obligatory. 15. The development of the Central Register of Businesses is strongly commended, and it is hoped that resources adequate to ensure rapid progress will be devoted to it. 16. In this context the CSO should reconsider the question of the preparation and publication of an enterprise census which would provide comprehensive coverage of all firms as soon as possible as part of its plans for the development of business statistics. (A)(B) 17. The true cost of any statistical exercise, and not merely the often comparatively small proportion of cost falling on Government estimates, should he fully taken into account before starting an enquiry, and methods chosen which involve the least total cost rather than least Government expenditure. (A)(B) 18. Any proposal for a new or revised statistical exercise should include an estimate in man-hours of the time required by respondents to complete the form. 19. All statutory barriers to the passage of statistics between different departments should be stringently examined and demolished wherever possible. We regard this as of particular importance in the case of statistics collected by the Inland Revenue.
§ Mr. Anthony GrantIn the following list of the 25 recommendations referred to in my answer to my hon. Friend the Member for Conway (Mr. Wyn Roberts) on 8th May, those which have been wholly or partly accepted are marked (A). Of these, legislation will not be needed in the instances marked (B). We have stated our position on those without markings.—[Vol. 836, c.252.]
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The Disclosure Provisions of the Companies Act (A) 20. We recommend the exemption of private limited companies with annual turnovers below £500,000 from the requirement to disclose the individual emoluments of directors, though firms should continue to show the total amount in the profit and loss account. (A) 21. We recommend that private companies be exempted from the requirement to disclose turnover when this is below £500,000 per annum. Development and Planning Controls (A) 22. Small firms throughout the country should be relieved of the need to apply for an IDC when their plans involve the creation of less than 10,000 sq. ft. of industrial floor space, in accordance with the Hunt Committee's proposals. (A) 23. If it is considered that this should not be extended to all undertakings, the 10,C00 sq. ft. exemption limit should be extended to established small firms. 24. Local authorities should be prepared to use their powers under the Town and Country Planning (Development Plans) Direction 1965 to allow the establishment of small businesses in residential areas when this will not detract from these areas' amenities. 25. The present legal obligation of local authorities to provide suitable alternative accommodation to displaced firms should be strengthened, and the Department of the Environment and the Scottish and Welsh Offices should do more to encourage unhelpful local authorities to cater for the needs of small firms as effectively as other more enlightened authorities.