Family Businesses: Contribution to Local Communities

Debate between John Stevenson and Jamie Stone

Tuesday 20th December 2022 Westminster Hall

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

It is a pleasure to serve under your chairmanship, Mr Robertson.

As a Scot myself, let me say that it is a pleasure to hear a canny Scot—the hon. Member for Carlisle (John Stevenson)—taking us through this important subject; I always think a gentleman from Aberdeen would have a particularly good grasp on the vital need to make ends meet and run a tight ship.

I ran my family business for eight years, and my brother runs it now. It was a cheesemaking business that grew out of small dairy farm on the shores of the north Firth. For eight years, I had to juggle the profit and loss account and know how to do a VAT return—I had to do all that stuff, and it was invaluable experience. I will not go any further, because I cannot plug a family business too hard, but my brother continues in the same vein and I am very proud of him.

Let me expand on the points made by the hon. Member for Carlisle. The local contribution of family businesses is crucial. They tend to use the local bank: businesses in my constituency deposit large amounts of money in the local branch and help keep it open. They mostly use a local solicitor, and that equates to jobs in the local area. They use a local estate agent if the need arises, and local shops. They rely on their reputation, as the hon. Gentleman hinted at; local businesses do not want to make a mess of things locally, because it is on their own doorstep. Those are the key things they bring to their areas.

No local business will survive if it cannot balance the books and get it to work. That expertise, as the hon. Gentleman said, makes a huge local contribution, in terms of the chamber of commerce, local government and so on. As a passing aside—this is as much about my party as any other party in this place—we could do with more local businessmen in the House of Commons. If we go back 100 years, there was a time when many Members of the House of Commons had made their fortune and knew what they were talking about when it came to the big issues. That would be no bad thing. But that criticism is not directed at any one party; it includes mine.

[John Stevenson]

The hon. Gentleman makes a really interesting point about getting people with business experience here. Does he agree that, although traditionally important local businesspeople became members of the council, we do not see that today, and that is a big loss to us all?

[Jamie Stone]

That is a very apt point. I was elected to Ross and Cromarty District Council in 1986, which was a long time ago, and I have seen the sort of people who become members change dramatically in my lifetime. When it comes to local government finance, to have hard heads on the finance committee does not half help things.

Nurturing local businesses sits within a wider framework, which the hon. Gentleman touched on. He mentioned advice and access to finance as and when needed. Many of us feel that the day of the local bank manager has gone—the man or woman who could talk to the businessman and say, “Okay, that is a good idea. I’m willing to offer the following finance.”

In my part of the UK—my very far north constituency—a local business will do well and thrive if it has the support to which I alluded. We have an organisation called Highlands and Islands Enterprise, which was conceived by the Wilson Government in the 1960s, and did much good work over the years. I am sad to say that it is not what it was all those years ago. It is weaker, through no fault of its own; it is a small organisation and does not have the ability to offer advice and target finance as and when necessary. A lot of other infrastructure is required in our constituencies—in my own case, an airport, rail links and road links. A hardy perennial is the NHS, and I often raise the issue of maternity services. If any one of those vital key support networks is not up to standard, that sadly makes life harder for local businesses, particularly when it comes to recruitment or expansion.

I will close with an example. In Caithness we have an engineering firm called JGC Engineering, which is owned by the Campbell family. It is a third-generation firm that grew out of a blacksmith business, and it makes clever stainless steel stuff for the nuclear industry, Dounreay and others. As right hon. and hon. Members know, I have often talked about the potential of a space launch coming to my constituency—and I think it is just around the corner. A company such as JGC Engineering can use that but, if it does not have the infrastructure links, the back-up and so on, it will be harder for the company when the big day comes and it can go for those contracts. It is a basic point, and I make no apology for emphasising it again and again.

It remains only for me to wish all right hon. and hon. Members the compliments of the season, a very happy Christmas and a prosperous—in the business sense—new year.