§ Mr. Kaufmanasked the Secretary of State for Trade what have been the number of bankruptcies in the construction industry so far in the current year and the figures for the comparable period in each of the past 10 years.
§ Mrs. Sally OppenheimThe numbers of insolvencies analysed by industry are available only quarterly. Construction industry figures for England and Wales for the first quarter are given below.
First quarter Bankruptcies* Company liquidations† 1970 216 211 1971 206 156 1972 294 145 1973 237 143 1974 249 161 1975 437 240 1976 361 232 1977 227 256 1978 192 241 1979 174 232 1980 158 212 * Bankruptcies relate to individuals and partnerships; deeds of arrangement are included as well as receiving and administration orders. Figures may be incomplete as some orders are only classified by industry at the end of each year. †Compulsory plus creditors voluntary liquidations.
§ Mr. Lathamasked the Secretary of State for Trade whether he will make a statement on the results of his Department after 13 months of the present Government in achieving the policy pro-cc 224W gramme which he set it on assuming office.
§ Mr. Nott[pursuant to his reply, 10 June 1980.] : Since taking office my Department has introduced six Bills into Parliament, of which four are now on the statute book.
The Competition Act 1980 abolished the Price Commission, with a saving of 450 staff and £6.25 million a year, and provided a more effective means of controlling business practices that restrict competition ; it also introduced special powers for the investigation of nationalised industries and public enterprises to ensure that the consumer does not suffer through inefficiency or abuse of monopoly power.
The Civil Aviation Bill now before the House will enable the Government to make available to the public a substantial minority shareholding in British Airways ; it also replaces the powers to give ministerial guidance to the Civil Aviation Authority by a statutory framework for its operation. These changes will allow more scope for the effects of competition to the benefit of the consumer, even in markets where there is a highly regulated system.
The Protection of Trading Interests Act now supports more effectively British companies against the extra-territorial application of the laws of other countries. It also renders unenforceable in the United Kingdom judgments for multiple damages awarded by courts overseas.
The Companies Act was largely concerned with implementation of the EC second company law directive. It also makes important advances in British company law ; it makes "insider dealing" a criminal offence, requires directors of a company to have regard in the performance of their duties to the interests of employees as well as the interests of shareholders and widens the prohibition on companies making loans to their directors.
The Films Bill takes a number of steps to support the British film industry ; it prolongs and broadens the power of the National Film Finance Corporation to make loans to assist the production and distribution of films.
Finally, the Insurance Companies Act harmonised the insurance companies 225W legislation of Northern Ireland and the rest of the United Kingdom.
The Ministers of my Department have been active in pursuing a programme of trade promotion visits in support of British exporting firms. We have covered the following countries : Abu Dhabi, Algeria, Australia, Bahrain, Brazil, Canada, Denmark, Dubai, Egypt, Federal Republic of Germany, Fiji, Finland, France, German Democratic Republic, Greece, Hong Kong, Indonesia, Iraq, Israel, Japan, Kuwait, Malaysia, Mexico, Netherlands, New Zealand, Norway, Oman, Philippines, Singapore, Saudi Arabia, South Korea, Sweden, Switzerland, Tunisia, United Arab Emirates, United States of America, USSR, Venezuela and Zimbabwe.
The Export Credits Guarantee Department, for which I am also responsible, has reviewed its range of facilities and continues to offer a wide range of services to exporters.
We have examined, with the help of Sir Derek Rayner, the efficiency of the Department's export services with the outcome I announced on 30 April. The organisation of the Department's trade promotion work is also being reviewed to secure greater integration and effectiveness.
As regards general trade policy questions, the Department has been active, through 'the European Community, in promoting the dual policy of seeking the maintenance and strengthening of the open world trading system while protecting British industry against damaging sudden surges in imports and against dumped or subsidised import competition. It has supported the Community's policy of seeking the full implementation of the agreements reached last year in the General Agreement on Tariffs and Trade (GATT) multilateral trade negotiations. It has secured action in a number of cases against dumped or subsidised imports and against certain United States synthetic fibre products. It has sought to ensure the tightest possible application of the restraint arrangements for textiles associated with the GATT multi-fibre arrangement, securing in this last connection a substantial number of new quotas. The Community at our request has now concluded voluntary restraint arrangements with all the Mediterranean suppliers except Turkey.
226WIn the area of relations with developing countries for which the Department is responsible, it has taken an active part in the successful negotiation in UNCTAD of a code of restrictive business practices and in the attempt, still continuing, to secure final agreement on a common fund for commodities.
Following receipt of the reports of the Study Group on South-East Airports and the Advisory Committee on Airports Policy, we have announced the Government's airports policy which is, first, to encourage the fullest use of regional airports and, secondly, to provide additional airport capacity, as the traffic develops, based on the existing airports in the South-East. A public inquiry will be held next year into the proposed construction of a single terminal building at Stansted based on the existing runway facilities and capable of handling about 15 million passengers a year.
In the consumer field we have cut off the central Government grant to consumer advice centres but given additional support to the citizens advice bureau movement for development. This has resulted in a net saving of about £2.5 million.
The Upholstered Furniture (Safety) Regulations which come into operation in October will mean that after 31 December 1982 upholstered furniture must be resistant to ignition by cigarettes and eventually by matches with consumers being adequately warned of the dangers which this furniture presents in the meantime. The regulations put this country far ahead of the rest of the world in this field and will result in much safer furniture for consumers in their homes.
My Department has continued its work on administration, regulation and international negotiation in the fields of company law, insurance, maritime affairs and civil aviation.
Last autumn I presented a Green Paper on "Company Accounting and Disclosure "—Cmnd. 7654—with proposals to reform the law in accordance with the EC fourth directive and in so doing to ease the accounting and disclosure requirements for small companies.
My Department has dropped its detailed control over the charges made by 227W unit trust managers to unit holders, which will now be left to free competition.
In the field of civil aviation we have taken the lead in the Community in putting forward proposals for the liberalisation of regional air services.
In the maritime field my Department has taken particular interest in matters concerning safety standards, prevention and control of pollution from ships and questions of liability and compensation relating to ships and shipping operations. In this connection we have participated constructively in all aspects of the Intergovernmental Maritime Consultative Organisation (IMCO), and the United Kingdom has recently ratified a number of IMCO instruments.
In the furtherance of the Government's objective of stopping unnecessary functions and reducing public expenditure, we have abolished the Metrication Board, saving 33 staff and about £1 million per year. The Department has also responded well to the reductions of functions by a consequent fall in staff numbers. My Department now has 7,180 officers in post compared with 7,618 in the Departments of Trade and Prices and Consumer Protection at the end of the last Administration. Further staff reductions will be made as functions are abandoned.
My Department is also acting directly to relieve the burden it imposes on firms who have to complete its administrative forms. Independent consultants have examined the complete range of forms issued by the Department. They found
228W
1978 1979 1980 projected Annual census of production … … 47,500 40,800 36,000 Annual survey of retailing … … 25,000 24,900 20,000 Annual survey of other distributive and service trades 68,900 50,100 39,000 Quarterly survey of manufacturers' sales … … 100,500 97,000 96,000 Monthly survey of retail sales … … 53,100 51,100 48,000 Wholesale prices* … … 124,200 125,200 125,000 Sea passenger movement inquiry … … 84,000 89,400 100,000 All other statistical inquiries … … 202,050 164,200 160,000 Total … … 705,250 624,700 624,000 of which : voluntary … … 330,100 295,550 277,000 statutory … … 375,150 347,150 347,000 * About 10,000 cards are shuttled backwards and forwards to firms each month or quarter. very little ground for complaint, but we shall continue to seek further improvements in considering their content and design—and indeed their need.