(12 years, 11 months ago)
Commons ChamberNo, I am not suggesting that at all. I am not suggesting that money is only to be made out of tourism during daylight hours. Indeed, there is a lot of tourism in London in the night time economy that is very beneficial to the country’s economy. I see my hon. Friend the Member for Bournemouth East (Mr Ellwood) in his place. He will know that the night time economy in Bournemouth is also flourishing and thriving. That is not dependent on having this Bill on the statute book.
Is not another piece of evidence the fact that about £138 million a year could be saved in the NHS by reducing the number of road casualties?
Apparently the figure comes from the Department for Transport’s estimates.
As a former Transport Minister, far be it from me to criticise the Department for Transport. I have to say, though, that most of the alleged benefits—by which I mean the reduction in the numbers of road casualties—would occur in Scotland, but given that road safety is, as I understand it, a devolved matter, if the Scottish Parliament wishes to take action to improve road safety, including by doing something along the lines suggested in the Bill, surely it must be a matter for the Scottish Parliament. I am conscious that on Second Reading mention was made of the fact that during the last experiment in the north of Scotland, notwithstanding changes being made to drink-driving laws and so on, the number of road casualties actually increased.
(14 years, 1 month ago)
Commons ChamberMy hon. Friend makes a good point. He is right to emphasise the riskier approach, because sometimes there is a risk. For example, in my constituency, the local council decided to let the contract for the running of the local leisure centre to a charitable trust based in Poole. It became apparent that the trust was not delivering on what was set out in the contract, and after several years the contract had to be taken back in-house. Subsequently, a couple of other projects that the trust was running were found to be financially unsustainable, and that was the end of that, I think. We must not get into a frame of mind in which we think that anything that calls itself a social enterprise is, by definition, a good thing. Such bodies have to be run along business lines.
To take another example, people in Verwood—a town that is no longer in my constituency, sadly, but was until the time of the last general election—have set up a community enterprise called the Verwood Hub, which is a community centre. Unfortunately, it is becoming clear that they have not been applying business principles to the running of that centre, so they are having to go back to the local authority and say, “Please give us some more money.” The local authority is making it clear that it can go only so far in doing that, because there is a limit to how much it can be expected to use local taxpayers’ money to make up for the deficiencies in the business plan of what might otherwise be described as a laudable community enterprise.
We must not let the example of one or two less successful projects restrict the opportunity for the public sector to enter into entrepreneurial projects with local groups. The spirit of enterprise does, of necessity, involve risk. We have seen that spirit in this nation over many decades, if not centuries, and it is the seed of the fruit of phenomenally successful community and commercial organisations. We can look back in the history of this nation at some tremendous businesses that have done social good, so it would be dangerous for us almost to sanitise public procurement, as we have done to a large extent,. It can never be risk-free. Without an element of risk, we will reduce the opportunity for those great potential benefits that have flourished in this nation in years gone by.
Absolutely, and that is very much the theme behind the submission from the Federation of Small Businesses on the Bill, which a number of hon. Members will have received. It makes the point:
“The Bill describes social enterprises as businesses ‘carried on primarily for a purpose that promotes or improves social or environmental well-being’. While such organisations are undeniably valuable, micro businesses also serve such a function. What sets them apart from social enterprises however is that their primary purpose will be to make a profit and remain in business.”
That is the important part—remaining in business. They cannot do that unless they make a profit, as they are often unable to raise capital. That was the problem with the charitable trust that I mentioned earlier. It was not able to reinvest in the leisure centre, which as a result became rather dowdy and did not meet the needs of the customers.
Staying in business may be the immediate aim of a micro-business, but there is often a greater end to that. The aspiration is that in time, it will be able to become an established small business and make a difference to its community and environment. We have to support and nurture micro-businesses in order for them to make that difference.
My hon. Friend is absolutely right, and we all have examples from our constituencies of businesses that started very small and have become quite large. One such business in my constituency makes organic baby food, and now supplies it to major national retailers. It was based on the idea of an entrepreneur who asked, “Why are we not ensuring that people can guarantee that their children are being fed wholesome baby food at the most nutritionally important time of their life?” That enterprise struck a chord with the consumer, hence its great success. There are a lot of other examples that I will not trouble the House with at the moment.
My hon. Friend is absolutely right. Given time, I am sure that he would develop his argument in relation to north Somerset, as he has so ably on previous Fridays.
Localism is of great importance. When we talk about its importance, we should not be too fussed about whether we are talking about a local small business, a local social enterprise or a local charity. We must not create artificial distinctions.
We must also not differentiate between a business being local and being big. It would be dangerous if we equated local with small. As a member of the all-party group on small business, I was a guest yesterday evening at an event at which one of the “Dragons”, Theo Paphitis, spoke powerfully about the impact of his chain of shops, Ryman. He took the group on when there were about 80 shops, and there are now about 260. He encourages local staff at each store to raise money for local community projects and he then matches it. Does my hon. Friend agree that it would be dangerous if we started defining too narrowly the scope of even the businesses with which we want to engage? Local does not necessarily mean small, although as someone who has run a small local business, I fully emphasise the importance of what small businesses bring to local community life.
I agree absolutely. There are so many examples. The local community may be dependent on the local post office, but the Post Office is a national organisation with a national network. None the less, it is ever so important that the local branch of that national network in a particular village is maintained and viable. The same is true of the local pub. It does not have to be owned as a freehold by somebody local; it may be part of a national pub chain. That makes no difference to the important role that it will play in helping to maintain the local community. We could go on with lots of other examples.
I turn now to the “residue” of the Bill, and I should tell my hon. Friend the Member for Warwick and Leamington that I do not mean that disparagingly—perhaps “a distillation of the Bill” would be a better expression. When we get to clause 3, we are left with a duty on local authorities not to do anything, but to consider something. My hon. Friend said that that does not offend against the principles of localism and that it is legitimate for the Government to require local authorities, and thereby councillors, to consider particular things.