Trade and Investment

Lord Burnett Excerpts

Wednesday 9th February 2011 Lords Chamber

[Lord Green of Hurstpierpoint]

I thank the noble Lord, Lord Hunt of Kings Heath, for that suggestion. I have to say that, as somebody relatively new to my role, this is not an area with which I am very familiar. However, his idea is very interesting and I am happy to undertake at least to inform myself more about the issues.

I am aware that Britain has been a very attractive site for R&D in the pharmaceutical industry. I think that we are all aware of the way in which the pharmaceutical industry is changing, with an increased tendency for the major companies to look at whether primary R&D is better contracted out to smaller operations. There is a need to think through the implications of that for the strategy of attracting and retaining inward investment in that sector.

[Lord Burnett]

I welcome the Statement and my noble friend’s appointment. Some of our major banks execute transfers of money rather more swiftly than others. It would be of great help to small and medium-sized businesses if money transfers took at the most, let us say, 24 hours rather than three or perhaps even more days. Will my noble friend encourage dilatory banks to speed up the system? Will he also take steps to encourage large companies to pay their suppliers without delay?

[Lord Green of Hurstpierpoint]

I thank my noble friend Lord Burnett for those suggestions, which are both important. I am happy to undertake that the Government will ensure in their dialogue with the banks that money transfers, particularly for small businesses—but, frankly, for anybody—are done as rapidly as is reasonable. I also agree that we should encourage large companies to ensure that they settle bills with their smaller suppliers as promptly as possible.