HC Deb 19 July 1988 vol 137 c590W
Mr. David Shaw

To ask the Secretary of State for Transport if he will make a statement on the achievements of his Department and his policies in helping small businesses over the last 12 months compared with the previous 12 months; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring.

Mr. Moore

Over the past 12 months my Department has continued to identify ways to help small businesses. Specific measures which have been introduced include:

  1. (i) In February 1988 a free advice line was set up to answer inquiries from business on the operation of National Insurance, statutory sick and maternity pay. This new service has been especially well received by small businesses with around 80 per cent. of calls coming from small firms.
  2. (ii) Together with Inland Revenue we have produced a leaflet 'Employed or Self-employed' designed to be of help to people who may be unsure of their status for tax and National Insurance purposes. The new leaflet was issued in April. Further improvements in the guidance material issued to new employers are also being made.
  3. (iii) From april 1988 a new improved system, family credit, has replaced family income supplement and will substantially increase help available for working families on low incomes. It is anticipated that many more self-employed people arc likely to qualify under the new scheme.
  4. (iv) Changes introduced in April have made it much easier for employers, particularly small employers, to set up their own company pension schemes. The conditions for contracting-out of the state scheme were simplified in November 1986 but in addition from 6 April 1988 employers were able to operate a new kind of occupational pension—a contracted-out money purchase scheme (COMPS). This has the advantage particularly for small employers of not imposing an open ended commitment. From July personal pension schemes were introduced which need not involve employers at all. A major national advertising campaign, part of which was specifically targetted at the small employer has been launched to tell business of these changes.

In addition we are taking positive steps to increase purchases from small firms and have set up a departmental purchasing and supply directorate, part of whose remit is to act as a focal point for small firms. The DTI publication, "Selling to the Public Sector" gives details of the contact point. Regional buying staff are making contact with local business or development associations. Training courses for purchasing staff point out the importance of small firms in increasing the supplier base and assisting the quest for value for money.

This represents a significant package of new measures to assist small businesses. My Department attaches particular importance to action in this area and continues to explore further ways to help small firms.