Industry (Government Support)

Debate between Baroness Morgan of Cotes and Andrew Miller

Wednesday 16th June 2010 Commons Chamber

[Nicky Morgan]

Obviously I am not running the Treasury, and I am not the Chancellor of the Exchequer. [Hon. Members: “Not yet.”] That is too kind.

I contacted the chief executive of the building society I mentioned and asked for an explanation, but I sometimes wonder whether decisions are made at a lower level of management and without any real thought or understanding. We heard a statement earlier about the directors of banks. I should like to know whether all directors are fully informed of the way in which their bank is running its business, and whether they realise that they are putting the squeeze on businesses which, although sound, cannot afford to make higher repayments at this stage of the economic cycle while they are also trying to stay afloat and keep people employed.

Much has already been said about the increase in regulation. According to the Federation of Small Businesses, small firms spend seven hours a week dealing with red tape. I welcome the Government’s decision to introduce a “one in, one out” system. I do not know whether other Members have been receiving surveys, but I received one recently asking what law I would like to introduce. Actually, I do not want to introduce any more laws. I should like to see fewer laws. I should like laws and regulations to be simplified, both for businesses and for individuals.

Members have mentioned the gold-plating of European Union legislation, which goes on all the time. I sincerely hope that following the change of Government, we shall see an instruction that regulations are no longer to be gold-plated.

[Andrew Miller (Ellesmere Port and Neston) (Lab)]

May I commend to the hon. Lady the most recent report of the Regulatory Reform Committee, published in the last Session? Evidence was taken from a wide range of sources, including the London Business School, which said that it was not true that Britain was in the habit of gold-plating EU regulations.

[Nicky Morgan]

I am grateful to the hon. Gentleman, and I shall certainly look at the report, but I know from my business experience that that is not the case. Some regulations may not have been gold-plated, but I understand that in one instance that has been brought to my attention—the agency workers directive—the Government have gone further than was intended in the EU’s original drafting.

I visited a local business recently, a recruitment company. I was told that it employed one individual to help it to deal with its accounts. In one month, he has to fill in four different forms for a business register and employment survey, an annual business survey, an annual survey of hours and earnings, and a monthly wages and salaries survey. The annual business survey asked how long it took him to fill in the form. It had taken him one hour and 25 minutes—one hour and 25 minutes that could have been spent earning money for the business. Who is using all this information, and what is it being used for? Is it just going into some big black hole somewhere? We are making our businesses spend far too long on red tape and form-filling.

Before I return to the subject of regional development agencies, I want to say something about skills and apprenticeships. I was delighted when, earlier today, the Prime Minister said that there would be support for them in the Budget, and I welcome the 50,000 additional places that are mentioned in the amendment to the motion. We have a terrific college in Loughborough, which I visited again recently. My right hon. Friend the Minister for Universities and Science has visited it with me, and his colleague the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), has visited it as well.

The college provides a variety of courses, but its building plans—like those of the college in the constituency of my hon. Friend the Member for Stourbridge (Margot James)—have been hit by the chaos in the Learning and Skills Council. Having committed £30,000 to the planning process for its new buildings, Loughborough college found that the LSC had massively overspent, and that it would receive none of the money. It now tells me that, although it does a tremendous job and its courses are well over-subscribed, its buildings will not be fit for purpose for much longer, and it does not know how it will find the money to fund the new ones.

Adult learning is very important. The hon. Member for Bolton West (Julie Hilling) spoke of aspiration. I think that we should encourage better careers advice, emphasising the importance of manufacturing to school pupils and informing them of the opportunities that are available in the engineering sector and, indeed, all areas of manufacturing. One practical suggestion from a manufacturer is to help employers to run in-house training courses.

I want to comment on RDAs because I did not get a chance to intervene on the hon. Member for Birmingham, Erdington (Jack Dromey). Some RDAs may have achieved their purpose, but I recently spoke at a conference organised by the Leicestershire Asian Business Association. There were 50 people in the room. Not one of them—I specifically asked the question—had a good word to say about their RDA, the East Midlands Development Agency. I am happy to listen but it is up to the regions to decide the best way to offer business support. The best way may be through local enterprise partnerships. It may be through keeping some form of regional structure, but I support the amendment to the motion.