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Beer Orders
6. Mr. Simon Hughes: To ask the President of the Board of Trade what representations he has had on the Beer Orders. [2604]
The Minister for Competition and Consumer Affairs (Mr. John M. Taylor): Representations recently received by my Department include those on the guest beer provision; whether there would be a review of the brewing industry to consider the effects of the beer orders; the terms of leases offered to tenants; and the refusal to supply beer if a brewer suspects duty fraud.
Mr. Hughes: I welcome the Minister to his new job. The Chancellor's decision last week not to increase the duty on beer is clearly welcome, but there is still considerable concern in the brewing industry and particularly in the licensed trade that current arrangements for the licensed trade work against the survival of the local pub. I am not making a party political point, but this year could the Minister look again at all the interrelated issues to secure the future of British beer and of the British pub?
Mr. Taylor: The effect of the Beer Orders has been to weaken the tie, introduce greater versatility in financial matters and introduce guest beers, giving the consumer much more choice and binging competition into the trade.
Mr. Harry Greenway: Is my hon. Friend aware that British brewers strongly welcome the Chancellor of the Exchequer's action on beer in the recent Budget? Do not British beers remain the best in the world?
Mr. Taylor: My word, they certainly do. I whole heartedly agree with my hon. Friend, but I stop short in
my enthusiasm and will not comment on anything that falls within the province of the Chancellor of the Exchequer.
Mr. Hoon: I welcome the Minister to his new position. Does he agree that the Beer Orders have had a dramatic impact on jobs in the British brewing and licensed retail trade? Does he further agree that those jobs are threatened by the 1.1 million pints of beer flooding into Britain, mainly in the back of transit vans? Does he agree that at least 10,000 jobs have been lost in the industry already, causing uncertainty and insecurity? Does he accept the importance of tackling that job insecurity, or is it just a state of mind?
Mr. Taylor: Perhaps I may reciprocate the hon. Gentleman's kind opening comment by wishing him a happy birthday. As the ills of which the hon. Gentleman spoke concern duties charged on beers, they are not matters for me. If the hon. Gentleman is aware of fraud or criminal activity, he should tell the prosecuting authorities as well as the Government.
Mr. John Marshall: I join those who have congratulated my hon. Friend on his promotion to the Department of Trade and Industry, and I repeat what other colleagues have said: the greatest threat to the brewing industry is the level of tax. This year we welcomed the first reduction in whisky duty for a century. May we look forward next year to the first reduction in beer duty for many years?
Mr. Taylor: I am not supposed to comment on the last Budget, so I shall certainly stop short at commenting on the next one.
Export Opportunities
7. Mr. Tony Lloyd: To ask the President of the Board of Trade what steps he is taking to assist small and medium-sized enterprises to explore new export opportunities. [2605]
The Minister for Trade (Mr. Anthony Nelson): Through Overseas Trade Services, my Department provides a range of assistance to companies wishing to explore new export opportunities. We are also helping smaller firms by the creation of the Business Links network.
Mr. Lloyd: Does the Minister accept that there is a widely held opinion that the support in exporting that British small and medium-sized enterprises receive does not compensate for what is offered in countries such as Germany or Japan? Does he accept that it is vital that that sector of industry receives dedicated assistance which recognises its special needs? Does he accept that it is especially important that small firms should have access to decent language training and to the type of support that the larger firms sector can give them, if small firms are given the opportunity to take that in a way that they find user-friendly?
Mr. Nelson: I do not accept the first of those propositions. The Government do indeed attach importance to helping small firms to export. That is precisely why we have given an export element to the business links. That is why we have established 100 export promoters. That is why we have set up
some export development counsellors through business links. I agree with the second of the hon. Gentleman's propositions--that foreign language teaching is important.
The most important thing for small businesses is to keep their costs down and encourage them, through campaigns, to enter new nearby markets, such as those in Benelux and Ireland. In that way, we can bring about a much-needed substantial improvement in the number of small firms which export.
Mr. Budgen:
Would it not be wise if my hon. Friend emphasised that neither wealth nor happiness nor employment will come from political action, and that he will not help the exporters and take away all their problems any more than the President of the Board of Trade will help all those people who have, sadly, been made unemployed as a result of technological change?
Otherwise, if we continue to pretend that all those things will be cured by the politicians, the people may look to other politicians to solve their problems.
Mr. Nelson:
All I can say to my hon. Friend is that that is not what business tells me. Businesses tell me that they would like a helping hand from Government, and that what we are doing, specifically through business links, is very valuable. I agree with my hon. Friend that whatever Government do by way of clever schemes and promotions is very little compared with the importance of macro-economic stability and sound economic finances and management. That is what the Government are doing, and that provides the firmest possible foundation for business and the expansion of small businesses.
Mrs. Roche:
Given that Barclays bank told the Trade and Industry Select Committee that exporting for the first time represented a significant barrier to growth for many small firms, is it not about time that the Minister ensured that the export intelligence service used its time and taxpayers' money to help small and medium-sized enterprises, rather than producing large and very generalised reports for use by large companies?
Mr. Nelson:
The hon. Lady makes a constructive criticism. It is the case that we are trying to improve the dissemination of information to small businesses, and I will carefully consider the hon. Lady's argument. We want to make that information friendly to the companies which use it.
Barclays is well placed to recognise that as a bank it has helped not only nationally but in, among other places, the north-east of this country, where Barclays has a great tradition of helping exporters--many of which are small firms--to jump that initial barrier. It is difficult for many, and it is costly for them. That is why we have a range of schemes and programmes to assist them. Information is part of it; taking them by the hand to some of the closest markets in Europe is another.
I repeat that that is very little compared with the importance of a sound economic background against which such companies can grow and expand the base of the markets in which they operate.
Sir Michael Grylls:
Does my hon. Friend agree that some of the measures in the Budget--reducing corporate taxation and helping on the business rate--are some of the best ways of helping small firms? That leaves more money in the business, and then those firms can afford to organise
Mr. Nelson:
My hon. Friend is spot on. Of course most investment in the business sector comes from reinvested profits, and the extent to which one enables companies to reinvest those net returns is a big determinant, not only of their future expansion, but of their growth into export markets.
I would mention, however, that in addition to the arguments that my hon. Friend made about the Budget, one of the sectors of increased public expenditure that we herald and welcome is the extra provision for export promotion. That will be very good news for companies which will be left with more resources out of their profits to help themselves, and for companies that cannot help themselves but want to build up new markets. New facilities for export promotion and more money will be available, thanks to the Chancellor.
8. Mr. Madden:
To ask the President of the Board of Trade what representations he has received from companies in West Yorkshire following advice given by Yorkshire Water in respect of relocation. [2606]
Mr. Page:
My Department has received no formal representations from companies in West Yorkshire on this point, but I am well aware of the concerns that the local business community has about the prospects of cuts in water supply. My hon. Friend the Minister for Local Government, Housing and Urban Regeneration met local business representatives to discuss their concerns when he visited the area on 29 September and 14 November.
Mr. Madden:
Does the Minister understand that the suggestion from Yorkshire Water that firms should relocate outside West Yorkshire was one of the dafter ideas to come from the unfunny comedians running Yorkshire Water? Does he understand that many firms and businesses in West Yorkshire are extremely worried about the security of water supply for the indefinite future, and certainly for next year? Does he also support a wholly independent inquiry to consider all aspects of the management of Yorkshire Water, the activities of the water regulator and the involvement of the Government?
Mr. Page:
I have been in the House long enough not to try to defend the indefensible. My right hon. Friend the Secretary of State for the Environment (Mr. Gummer) has stated clearly that the company should have acted much earlier and more comprehensively. I understand that the prospect of cuts is extremely worrying for industry, and my right hon. Friend has said that cuts would be the last resort of last resorts.
I am able to give the House the good news that, from the low point of 11 November, the levels in the reservoirs have started to rise, and a £50 million-plus programme has been introduced to ensure that the situation does not happen again. That programme will be finished by some time in the middle to late spring.
On the question of an inquiry, the Government have kept in touch with two independent reports already, but my right hon. Friend the Secretary of State for the Environment announced a wider-ranging review on
1 September to consider issues arising from the drought.
Sir Donald Thompson:
Perhaps my hon. Friend cannot agree that it is not Yorkshire businesses that should relocate, but some of the managers and directors of Yorkshire Water who should find employment somewhere else--perhaps running a retirement home. Will my hon. Friend apply pressure on the Department of the Environment and his Department to ensure that the reservoirs are kept as full as possible, and that a proper, sensible grid system for Yorkshire is imposed as quickly as possible?
Mr. Page:
I can tell the House that my hon. Friend the Member for Calder Valley (Sir D. Thompson) has been exceedingly active, both publicly and behind the scenes, in pressing the case for Yorkshire companies.
I agree that perhaps the shareholders of Yorkshire Water may wish to consider other matters within the company at some time.
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