(6 years, 2 months ago)
Lords ChamberMy Lords, I believe that the debate today is vital, thanks to the noble Lord, Lord Haskel. I will concentrate on two aspects: leadership and management. In the 1950s, I left school, did national service and then went into a small manufacturing company, which was run along the lines of “them and us”, “us and them”. After two years I left because I could not stand the way it was run. I then started my own small business. I mentioned school because I studied the fact that businesses are not always run well. I learned that businesses were badly run in the 1930s. However, there was one mill owner we studied who ran his business well when it came to the employees.
The business I originally worked for when I left school survived, and after many years I was asked whether I would return, which I did. Within a year the managing director died, so I was asked to replace him. Immediately I changed how it was run, setting up teams around the machines, working with the workforce co-operatively. Within a short time, the firm lifted off the ground. After a few years I got involved in politics, became an MP and was very busy. So in the company we decided to change things. We involved the workforce more than ever, and in the end gave the company to the workforce to run. It is successful now and running very well as a small manufacturing company.
From my experience, I have learned that good management is essential. It is often said that productivity in the UK is not good. I believe that lack of productivity follows poor leadership. It is not only businesses—many sectors are not well managed. There is a need for training in management. Leadership is so important. Bringing people with you and listening to them is vital. Our culture has to change.
(12 years, 2 months ago)
Lords Chamber
To ask Her Majesty’s Government what action they are taking to address the issue of late payments to small and medium-sized enterprises.
My Lords, central government policy is to pay undisputed invoices within five days and to pass 30-day payment terms down supply chains. Moreover, the Crown representative team in the Cabinet Office is encouraging prime contractors to pay more quickly than the 30-day commitment on a voluntary basis. We have tasked departments across Whitehall to manage their contracts to ensure that prime contractors pay their subcontractors within 30 days.
I thank the Minister for his Answer. Will he and his officials look at the important reports and surveys carried out by the Federation of Small Businesses and the British Chambers of Commerce and note their recommendations? There is a lot of very good information in there. I am glad that the Government have improved their record on payment, but it is still not satisfactory that local councils and other departments are not paying as promptly as they should. I am encouraged by the Minister saying that government departments are going to look at their suppliers. I ask him to ensure that they sign up to the prompt payment code.
My Lords, I have it in my notes that the Local Government Association, in the form of no less an important person than the noble Baroness, Lady Eaton, has agreed that local authorities will be encouraged similarly to follow best practice in this regard. The Cabinet Office has among other measures introduced a “mystery shopper” service through which small contractors who are dissatisfied with the service they are getting, either from a department or from a prime contractor, can anonymously feed this information through to the Cabinet Office.
(13 years, 10 months ago)
Lords ChamberMy Lords, there is time for both Peers. Perhaps we could have my noble friend Lord Cotter first and then, if it is the will of the House, the noble Lord on the Cross Benches.
My Lords, it is well recognised that small businesses are a crucial part of the local community and are ready to deliver on the big society. Local enterprise partnerships were recently established to do this and to help small businesses. However, I point out to the Minister that there is great concern that big business is overshadowing small businesses in the local enterprise partnerships, which were intended to give opportunities for small businesses in the community to provide employment for local people. Will she look at that issue?
My Lords, business has always played a vital role in the community. The organisation Business in the Community has been doing that for many years. In light of the fact that 60 per cent of those employed in the private sector work in small and medium-sized enterprises, it is vital that small businesses play a role when local communities are planning local regeneration as part of the local economic partnership.