§ Mr. SandersTo ask the President of the Board of Trade, pursuant to her answer of 14 July,Official Report, column 70, what limitations apply under European Community state aid rules in relation to business links support for small firms. [9304]
§ Mrs. Roche[holding answer 23 July 1997]: European Community state aid rules in relation to business link support for small firms apply to those businesses falling within the European Commission's definition of small and medium-sized enterprises.
SMEs as a whole are defined as having fewer than 250 employees and either an annual turnover up to 40 million ECUs or an annual balance sheet total up to 27 million ECUs. Businesses with fewer than 50 employees are defined as small, with either an annual turnover up to 7 million ECUs or an annual balance sheet total up to 5 million ECUs. In both cases, they should not be more than 25 per cent. owned by a larger enterprise. Finally, the Commission recognises micro enterprises as those businesses with fewer than 10 employees.
228WWithin this definition, there is no restriction on the level of support to SMEs via the business link network where that support comprises either general information services or initial counselling.
More substantial assistance, such as consultancy, in-depth counselling or specific skills training, can be funded only up to 50 per cent. of the total cost of that assistance.
Routine or regular assistance with, for example, accountancy or taxation cannot be supported from public funds as the Commission regards this as part of the normal running costs of a company.