Oral Answers to Questions

Mike Crockart Excerpts

Thursday 8th July 2010 Commons Chamber

[Mr Hayes]

My largesse is legendary, and I can hardly wait to visit. I would make one request—that there are tea and cakes when I arrive.

[Mike Crockart (Edinburgh West) (LD)]

11. What recent steps he has taken to increase access to finance for small businesses.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

The coalition is committed to ensuring the flow of credit to viable small and medium-sized enterprises. The emergency Budget contained several measures, including the enterprise finance guarantee, the growth capital fund and the enterprise capital fund. However, unlike the previous Government, we are addressing proactively problems in the banking sector before rather than after they irreparably damage the economy.

[Mike Crockart]

I thank my right hon. Friend for his response. Is he aware that, in my constituency, some small businesses that have successfully managed to gain access to finance are now being prevented from using that, because a bank in which the taxpayer has a significant interest has scaled back its willingness to be exposed to joint liability with small, family-run suppliers? Will he agree to take time to meet me to discuss that?

[Vince Cable]

I am very happy to meet my hon. Friend to discuss that problem, which is happening all around the country. As it happens, in his constituency, I believe that nine companies have taken up the enterprise finance scheme—654 companies in Scotland have done likewise—and have drawn more than £1 million from it, but I recognise the problem. Actually, I think I met the chief executive of the bank to which I believe my hon. Friend is referring last week. I am aware of the enormous frustration in many small-scale enterprises, and I will continue to pursue the matter.