Oral Answers to Questions

Mark Prisk Excerpts

Thursday 3rd June 2010 Commons Chamber

[Mr David Amess (Southend West) (Con)]

7. What his most recent estimate is of the financial effect on businesses of the present level of regulation.

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

While no official estimate currently exists, British Chambers of Commerce calculates that, since 1998, the additional regulatory costs introduced by the previous Labour Government have equated to approximately £11 billion every year.

[Mr Bone]

I thank the Minister for that response and welcome him to the Dispatch Box; I can think of nobody in the House better qualified to occupy his role. The cost that regulation has imposed is staggering. Can he estimate how much of that regulation emanates from the European Union, and what can he do to minimise that?

[Mr Prisk]

I am grateful to my hon. Friend for those kind opening remarks, and I hope to be able to satisfy my colleagues’ desire to make sure that we make a real change in how we help small businesses. My hon. Friend is absolutely right to say that Europe is a key source of many of the regulatory problems that we have, but we gold-plate the situation. That is why the Government are determined to adopt a different approach. Let me briefly say what that is. There are two simple principles: first, we will ensure that the timing of implementation does not disadvantage British business, when compared to its European counterparts; and secondly, when introducing regulation, we shall do so in a way that does not substantially increase either the cost or the scope. That is a crucial commitment to small businesses, and I hope that it will stem the tide.

[Mr Ellwood]

I, too, welcome my hon. Friend to his position. Labour’s red tape comes in all shapes and sizes. There are examples of that in Bournemouth, where a heavy goods vehicle licence is now required to drive one of the Noddy trains, which have provided an excellent service for years. Also, the police are now required to pass a course to allow them to climb an 8-foot ladder to erect Neighbourhood Watch signs. Does my hon. Friend agree that that is not what made Britain great?

[Mr Prisk]

My hon. Friend is right about the way in which common sense seems to depart from the way that this works. That is why we need to change the system, not just deal with the symptoms of the problem. That is why we are introducing a one in, one out approach to change the whole culture of Government: no new regulatory burden on business can be brought forward unless reductions are made to existing regulations. That will change the culture of Whitehall and stop some of the nonsense to which my hon. Friend refers.

[Mr Amess]

As chairman of the all-party group on small shops, I receive many representations from shops in Southend West and across the country on the burden of such regulations. In these still unfavourable trading conditions, will my hon. Friend look carefully at those representations and, as a Minister open to new ideas, meet a small deputation from the all-party group?

[Mr Prisk]

I am very pleased to accede to that request. My hon. Friend is an excellent advocate of that vital part of our economy. It is crucial that we are open to fresh ideas, so I look forward to hearing those representations, and if he will contact my office, we can arrange that as soon as possible.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

With reference to the Minister’s desire to help small businesses, it has to be accepted that some effort needs to be made to create the right environment for manufacturing businesses. Will he therefore please explain the Government’s plans to remove the annual investment allowance, which helps thousands of manufacturing businesses, hundreds of which are in my constituency?

[Mr Prisk]

The hon. Lady is right to point out the importance of manufacturing; it is a crucial part of our economy. Sadly, it became imbalanced when her party was in power, and we need to change that. On the tax measure in question, and the representation that she made, she will understand that we are in the period running up to Budget purdah and need to be careful not to get ahead of what I think the Chancellor’s ambitions will be, but at the CBI dinner he made it very clear that, as regards corporation tax changes, we will not act in any way that impugns manufacturing in any form.

[John Cryer (Leyton and Wanstead) (Lab)]

Does the Minister consider any part of health and safety regulation to be burdensome or, as he just said, red tape? If so, which bits?

[Mr Prisk]

The key principle in regulation is to ensure that it is proportionate and balanced, and that risks, where they exist, particularly in health and safety, are recognised. However, I say to the hon. Gentleman and to the whole House, let us ensure that regulations are introduced and implemented with a degree of common sense. Under the Better Regulation Executive we have good rules about proportionate regulation, and I want to ensure that health and safety meets those standards.

[Ian Lucas (Wrexham) (Lab)]

May I offer my congratulations to the hon. Gentleman on his appointment? I was very pleased to read that this Government are to follow the previous Government’s initiative in publishing the forward regulatory programme. Indeed, I was very pleased to read the press release in the Financial Times this morning, which I must say was very familiar to me. Press releases are the easy bit, but when will the Government bring forward the costings for additional regulations, such as minimum pricing and additional planning regulations, which have already been proposed and are set out in the coalition agreement?

[Mr Prisk]

I thank the hon. Gentleman for his kind remarks and look forward to jousting with him in a reverse of the situation we had before. I am very pleased to answer his point directly, because he raises the question of those regulations that are in the pipeline. I am pleased to tell the House that this Government will initiate a fundamental review of all regulation that is scheduled for introduction over the coming year. In the first few days of this Government, we have already identified several billion pounds of costs in those regulations, and we want to ensure that, where we can, we remove them so that business can get on and grow.

[Andrew Percy (Brigg and Goole) (Con)]

4. What his policy is on support for adult community learning.

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[Fiona Mactaggart (Slough) (Lab)]

11. What plans he has to support women entrepreneurs; and if he will make a statement.

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

While the existing start-up rates for female-led businesses compare favourably with other G7 nations, the Government believe that much more needs to be done to help more women in business.

I am currently talking to a wide range of businesses and considering what role the Government should play with regard to access to finance, home-based businesses and enabling more women to start their own firm.

[Fiona Mactaggart]

But the people who need to support women entrepreneurs and are failing to do so are at the banks, despite evidence from the Grameen bank and from the USA that investment in women entrepreneurs can grow the economy. What conversations is the Minister having with the banks to ensure that women-led businesses can succeed? Is he confident that a male team of Ministers will make that a high enough priority?

[Mr Prisk]

The priority of making sure that the banks are doing their job is something that both the Secretary of State and I are working on closely with the banking sector and the Treasury. We agree with the hon. Lady that we need to make sure that the banks are doing their job properly. I think there was a degree of, dare I say, complacency from some Ministers at the end of the last Government that all things were settled, but she is right to point out that they are not. She has also rightly pointed out the gender imbalance on the Front Bench, but I am pleased to tell her that my noble Friend Baroness Wilcox, who represents this Department in the other place, is working closely with me on the question of women in business. Baroness Wilcox is a successful business woman herself and I think she will make an excellent contribution. I know the hon. Lady takes a close interest in this matter. If she and other business women here would like to contribute to the debate, so that we can ensure we get the gender balance right and help more firms, they would be very welcome.

[Lorely Burt (Solihull) (LD)]

Many companies already accept the wisdom of procuring from companies that look like the customers whom they supply. We are behind many other countries, particularly the USA. I greatly welcome the Government’s aspiration to procure 25% from small businesses. Will the Minister consider the issue of procurement, and measuring procurement, from women-owned businesses for Government contracts?

[Mr Prisk]

I would be wary on trying to secure gender balance, as it becomes very complicated. The key is ensuring that women, as business owners and managers, can have the best opportunity. I would be happy to talk to the hon. Lady about how we can do that. I extend to her and other female Members who are in business and have real experience an offer to help me ensure that those businesses can succeed.

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[Mr Stephen Hepburn (Jarrow) (Lab)]

T7. The Minister will be aware that I have already been in contact with his office about Trench UK and Siemens’ proposals to close this very profitable plant and transfer production to France and Germany. Will he give an undertaking to meet Siemens at the highest possible level to avert this closure, and will he also meet a delegation from the plant so that we can discuss how we can save this jewel of British manufacturing?

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

I know that the hon. Gentleman takes a keen interest in his local businesses and jobs, and I am concerned about the issue that he has raised. I am aware that Siemens is about to commence a 30-day consultation period for employees. Clearly that is a commercial matter for the company, but in response to his inquiry, I would be happy to receive further representations if he would like to contact my office.

[Andrew George (St Ives) (LD)]

Yesterday, the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for Kingston and Surbiton (Mr Davey), confirmed in response to a question of mine that the Government are committed to introducing

“an ombudsman, in the Office of Fair Trading, to enforce the Grocery Supply Code of Practice…and curb abuses of power which undermine…farmers”.—[Official Report, 2 June 2010; Vol. 510, c. 44W.]

Can he confirm that that is a reference to the physical location of the ombudsman, and that it does not mean that the ombudsman will be operating under the executive power of the OFT?

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[Natascha Engel (North East Derbyshire) (Lab)]

On the coalition Government’s rather simplistic policy on regulation of “one in, one out”, will the Minister confirm that the one regulation coming in will be cost-equivalent to the one going out? If so, which regulation will go out when the agency workers directive comes in?

[Mr Prisk]

It is very simple: if a Minister wishes to bring forward a new regulation, they must show that they have removed a regulation and that that will reduce the overall burden of regulation, ensuring that businesses see a net reduction. That is an important change. It is something that the hon. Lady’s Government failed to deliver, but it is something that we will deliver on.