HC Deb 23 February 1977 vol 926 cc631-2W
Mr. Anthony Grant

asked the Secretary of State for Industry what assessment he has made of the effect on small firms of the requirements made upon them by the Price Commission; and if he will make a statement.

Mr. Cryer

Though firms of every size are bound by the Price Code, it is estimated that the vast majority of small firms are unaffected by the Commission's administrative requirements as their annual sales are below the level at which they are required to keep records of price increases and profit margins. Even those few small firms falling into Category III of the Counter Inflation (Prices and Charges) (Information) Order 1970 (SI 1976 No. 1172) are required only to keep appropriate records, not to submit information regularly to the Commission.

Mr. Grylls

asked the Secretary of State for Industry how many of the sector working parties mentioned their dissatisfaction with the availability of finance for small firms; and what action he proposes to take to remedy the difficulty.

Mr. Cryer

Few sector working parties referred specifically in their latest reports to problems over the availability of finance for small firms, but many of the general remarks made about the supply and, more prominently, the cost of finance apply particularly to small and medium-sized firms. The Government's general reaction to these comments is set out in paragraph 8 of the paper "Industrial Strategy: The Government Response" which was placed in the Library on 3rd February. The NEDC Committee on Finance for Investment under Sir Eric Roll has been asked to look particularly at problems of finance for small companies.