§ Mr. David ShawTo ask the Secretary of State for Wales if he will make a statement on the results of(a) his policies and (b) his Department in helping small businesses over the last 12 months as against 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. [34690]
§ Mr. HagueThe Government recognise the crucial role played by small firms in the United Kingdom economy. It continues to help smaller companies by keeping inflation and interest rates low and by reducing legislative, administrative and tax burdens. It also provides direct assistance where appropriate.
The White Paper published in May 1995 outlines a programme of measures to assist the growth and competitiveness of the small firms sector.
My Department works with local authorities, training and enterprise councils, the development agencies and local enterprise agencies in providing a range of services for small businesses in Wales. We have established eight business development consortia to streamline the assistance available and to make it more easily accessible through a single all-Wales telephone number. I expect that service to be fully operational within the next 6 months.
Some of the specific measures promoted by my Department are as follows:
ENTERPRISE PROMOTION
In 1994–95, TECs helped 2,235 people to start their own businesses, compared with 2,200 in 1993–94. The number of counselling sessions undertaken by business start up scheme applicants/participants increased from 10,438 in 1993–94 to 13,569 last year.
The Welsh design advisory service which was launched in December 1994 provides advice on all aspects to small businesses throughout Wales.
GRANT SUPPORT
The Welsh Office continues to provide grant support for small firms, having regard to the level of demand in each year. During the year ending June 1995, 122 firms employing under 200 people accepted offers of regional selective assistance totalling £11.676 million. The grants were forecast to help create or safeguard 2,501 jobs and generate £72 million private sector investment. In the previous year, 130 firms accepted offers totalling £16.876 million, forecast to create or safeguard 3,411 jobs and help generate £100 million private sector investment. Also in the year ending 30 June 1995, 74 small firms—those with fewer than 25 employees for investment grant and fewer than 50 for innovation grant—accepted offers of regional enterprise grant totalling £1.346 million. The grants were forecast to help generate £3.91 million private sector investment. In the previous year,138 firms accepted offers totalling £2 million with forecast private sector investment totalling £7.16 million.
My Department is also continuing with an active programme under the small firms merit award for research 1206W and technology—SMART. In the last two years, small firms from Wales have done well, gaining 17 and 21 awards respectively—approximately 9 per cent. of the UK total. Under the support for products under research scheme—SPUR—grant support for small firms in Wales fell from £1.21 million in 1993–94 to £0.9 million in 1994–95 but utilised the full balance remaining for the initial three year programme.
Elsewhere, the national "Managing in the 90's" best practice awareness programme, which is aimed primarily at small and medium-sized enterprises—SME's—has recently been relaunched with a new three year, £15 million package. My Department supports local activities under the programme including workshops and seminars, plus the acclaimed "Inside Welsh Industry" programme of free visits to exemplar companies. Last year seven highly successful workshops were organised in Wales on best practice themes attracting over 200 delegates. Meanwhile, visits were arranged to 10 exemplar companies involving some 120 visitors representing Welsh SMEs. Also of specific interest to Welsh SMEs are the Welsh Office technology transfer facilitation grants which encourage close collaboration between industry and academia involving new and emerging technologies. Eight grants were awarded under this programme last year.
In addition, there have been 14 new teaching company scheme programmes started in Wales since July 1994.
Grants to business formerly made available by the DBRW and WDA are now the responsibility of local authorities.
DEREGULATION
The Welsh Office is continuing to contribute actively to the Government's drive to reduce the burden of regulations on business. No Wales-only regulations have been identified as placing a burden on business.