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Mr. Taylor: My hon. Friend is absolutely right and puts her finger on the problem. I was speaking about that problem at a conference yesterday. It is a grave concern. My hon. Friends may wish to know that the best reason for the United Kingdom not joining the euro on 1 January 1999 is the information technology reason. The best reason for us not being in the first wave of the single currency is that British business is simply not prepared for it.
The skills base is required to carry out both the tasks I mentioned: adapting to the euro, and solving the 2000 problem. In reality, the euro will not be delayed simply
for that reason, however much it might have been desirable that Chancellor Kohl had as clear an understanding as I have of the 2000 problem.
Thus, my warning to British business is that, although the problems seem insuperable, they must be solved. Businesses may have to start prioritising, which means that some functions within the business may not be able to continue. I repeat that the problem will become critical next year, which is why I say that businesses will panic. They will realise that traditional relationships and supply chains will start to be cut off if they do not solve those problems. They will not be able to correct their systems overnight. It takes careful planning and a lot of painstaking effort, and extends into other areas like embedded chips and even personal computers. Even personal computers sold this year were not 2000-compliant. The problem will get no easier unless companies take a careful view of it.
This matter is far too serious to be party political. However, the Government show no sign of understanding, despite Action 2000, the size of the problem in terms of the British economy. I shall not get into a debate about whether the DTI is taking the right steps; I merely stress the implications for the British economy if we do not get it right. It is not a British problem; there is a global aspect to it, and we need to look at that as well and put pressure on many of the forums around the world.
For the British economy itself, whereas the Minister without Portfolio, the hon. Member for Hartlepool (Mr. Mandelson), is planning with excitement the exhibits in the millennium dome and the wonders of the great millennium exhibitions, there may well be in parallel quite a serious hole in the British economy, because of the problems that I have outlined.
Ms Jennifer Jones (Wolverhampton, South-West):
I am grateful for the opportunity to make my maiden speech in this debate. Earlier this week, I was asked--not by an hon. Member, I hasten to say--why I had left it so late to make my maiden speech, and why I had not fitted it into what that person called "one of the big debates". For me, this is one of the big debates, on an issue crucial to the House.
The reason I particularly wanted to make my maiden speech today is partly because of my involvement in small business start-ups in the past, and because we all agree on the importance of the small business sector to our economy.
Most of the businesses in Britain are small firms. They employ half the private sector work force, and the Federation of Small Businesses has calculated that, in the past 15 years, they have created 2 million new jobs.
The growth in the small business sector has also led to self-employment appealing to a much wider section of the population. We have heard how many young people now
see self-employment as an alternative to unemployment or to staying in an unsatisfying job. We must acknowledge the work of organisations such as the Prince's Youth Business Trust in helping many young people to recognise the appeal of self-employment.
The small business sector is diverse in the trades in which it operates and the structures it embraces. It is no longer just sole traders and partnerships; the sector now includes co-operatives, community enterprises and small companies limited by guarantee.
Government policies and initiatives designed to enable industries to develop and compete in world markets need to understand the specific needs of small businesses. Small businesses are not merely a scaled-down version of larger companies: they are separate entities with separate and special needs.
When we discuss innovation, as in this debate, we need to understand how to encourage small businesses to accept innovation and take up the opportunities offered to them, so that they become more competitive.
I have many small businesses in my constituency. Since I was elected, they have repeatedly raised with me the key issues that concern them. The first is late payments, which is brought up time and again. We must find a way of reversing the growing culture of late payments in our economy.
I would prefer that to be done by voluntary codes of conduct, through information leaflets and by raising awareness, but, sadly, that has not worked. As late payments cause havoc to small businesses' cash flow, particularly during the vulnerable first 18 months of trading, we need concrete measures to encourage a climate of prompt payment. For this reason, I welcome the Government's Green Paper on the matter. Innovation will mean nothing to small businesses that go bust because their customers simply will not pay them.
The second issue is the quality of the support and advice services offered to small business. That will be crucial in encouraging innovation in this sector. Business advice is currently delivered through a network of agencies including business links, the Prince's Youth Business Trust, co-operative development agencies and enterprise agencies. Many of those agencies rely on seconded staff, often brought in from larger companies where they have successfully run large departments, or from local and Government service. The agencies often work on the assumption that, having successfully run a department in a large company, the adviser should know everything there is to know about starting up and running a small business.
Not so. The needs of small businesses are entirely different from those of large companies, and business advice services must reflect that. The result is that in Britain we have a variable business advice service. Some business advisers are extremely good. They may well have come from a small business background and be running a small business themselves. However, some are drawn from much larger companies, and simply do not understand what is involved.
I therefore welcome the Government's proposal to set national standards for small business advisers. We must bear in mind the fact that, if the business advice is wrong, the small business--not the business adviser--will bear the brunt.
I also welcome the proposals which I understand are to be made to ensure that the boards and management committees of business links and other business advice agencies have a strong small business representation. It is crucial that the special needs of small businesses are listened to, understood and met.
The third issue is support services, which will be crucial to encourage small businesses to embrace innovation. Small businesses need a far greater take-up of information technology. We have already heard the figures. Small companies use information technology to a much smaller extent than larger companies, but they must adapt to it in order to compete worldwide. I fully endorse the policies to encourage IT into small businesses, but I am concerned about the way in which support services will be offered to the businesses so that they can take up innovation.
A great deal of training will be required. It must be understood that small businesses do not have the resources or the time to release staff to go on training courses. The training will have to be taken into the companies. Many small businesses turn down opportunities, not because they are not interested or do not realise its importance, but because they cannot release staff to go out of the companies.
I shall give a couple of examples from my town, Wolverhampton, where the university, through the STEP scheme--the special temporary employment programme--places IT students in companies, using chamber of commerce sponsorship, so that the students can work inside the small businesses, examining their IT needs and helping from inside the firm. No staff have to be released.
The university has a newly established science park and has set up what it calls the broadnet--websites for small businesses on the internet. From their premises, those businesses can tap into business information and support services.
I take this opportunity to sing the praises of Wolverhampton university. It is a modern university, dedicated to working with businesses. It has developed the science park, and is using new technology and taking it into companies.
The fourth issue is red tape. There is no doubt that small businesses consider themselves overburdened with the regulatory paperwork they must deal with. I appeal to the Minister to streamline the paperwork that businesses must cope with. As was said, businesses will find it extremely difficult to accept innovation if they are tied up in red tape. That will be a turn-off.
My constituency and the town in which it is situated has a long history of trade and industry. Wolverhampton was founded by a woman more than 1,000 years ago. Lady Wulfruna was a Saxon noblewoman who received a charter from the king at the time, Ethelred, to set up a settlement on the high land. The settlement became known as Wulfruna's Heantun, which became the modern town of Wolverhampton. A Saxon cross stands in the grounds of St. Peter's church, which also had its land granted by Wulfruna, and which testifies to the town's ancient beginnings. Over the centuries, several of the town's institutions continued to be named after Wulfruna, including Wulfrun college, the successful further education college in my constituency.
The entrepreneurial spirit of the early Wulfrunians soon became apparent, and a market was established in the 10th century. Unfortunately, they neglected to get a licence from the king, who took great exception, and fined them before granting them a licence. Wolverhampton soon established itself as a wool trading centre, and in the 14th and 15th centuries it was regarded as one of the staple towns of the wool trade. To this day, that is reflected in the town's coat of arms.
Wolverhampton's prosperity and energy was captured by Turner in 1795, when he painted the town's market. The painting was part of the artist's early work, before what is known as his mushy period. There is a new book in the Library on Turner, but unfortunately it does not include that painting. If anyone wishes to see a print of it, however, there is one in my office in the House.
Hon. Members may not be aware of Wolverhampton's connection with the gunpowder plot. Some of Guy Fawkes's co-conspirators took refuge near the town, and those who gave them shelter were captured and brought to trial in Wolverhampton. They were publicly executed in the town's main square, which is now a pedestrian precinct.
The arrival of the industrial revolution was fully embraced by Wolverhampton, which swapped trade for industry. The wealth of the town continued and grew, and those seeking to make their fortunes were attracted to the area.
Over the centuries, Wolverhampton has welcomed people from many walks of life who are willing to work hard and contribute to the town's prosperity. My constituency's multicultural population is reflected in its wide variety of eating houses and places of worship. The multicultural aspect of my constituency is a strength, not a weakness. From time to time, some have attempted to portray that aspect in a negative light--it happened again during the recent general election campaign, but the people of Wolverhampton, South-West decided that their health service, their schools and their jobs were more important than the colour of their neighbour's skin, and for that reason the victory on 1 May was sweeter than many others that night.
Wolverhampton's economy suffered badly in the 1980s as the manufacturing sector collapsed, but partnership among the council, the chamber of commerce, the university and local businesses has revived the town's fortunes, and it is now an attractive place to do business. Wolverhampton suffers from a poor national image which is quite undeserved, and visitors to my constituency invariably say that it is much nicer than they had expected.
On a visit to Canada this summer, while browsing through a bookshop I picked up some travel books on the United Kingdom, and was interested to read that Canadians certainly consider Wolverhampton worth a visit.
Clearly, people who have no preconceptions about my constituency find it an interesting and attractive place. Its art gallery is rated as one of the best provincial galleries in the United Kingdom. One of the finest collections of William Morris furnishings and pre-Raphaelite paintings can be found at Wightwick manor, a National Trust
property on the edge of my constituency. Bantock House museum has a magnificent collection of Bilston enamels. My constituency also offers a newly refurbished racecourse and the town has many nightclubs.
Last, but by no means least, Wolverhampton Wanderers football club is one of the oldest and most distinguished clubs in the country. Last year, the club unveiled a statue to commemorate one of the all-time soccer greats who used to play for Wolves--Billy Wright. I am, of course, a devoted fan of Wolverhampton Wanderers, not just because the stadium is in my constituency but because some of my husband's relatives used to play for the club, and distinguished themselves in doing so.
Being a Wolves fan can be a somewhat invigorating experience. The club has certainly had its ups and downs in the past, but it is currently going through an up, preferably into the premier league next season.
Finally, I turn to my predecessor. It is customary for a new Member in a maiden speech to talk about his or her predecessor. As the House knows, mine was Nicholas Budgen, who represented Wolverhampton, South-West for 23 years. I feel that I can say without fear of contradiction that Mr. Budgen was a high-profile Member. He voiced his opinions strongly on issues that he considered important. It is not for me to pass judgment on his service as an hon. Member; I shall leave that to his contemporaries and to history. However, my family and I knew Nick Budgen for many years, and during the election campaign he and I attended several public meetings together.
The campaign in Wolverhampton, South-West was robust and energetic, leading the local papers to describe the pair of us as "The Nick and Jenny show--the only show in town worth watching". We both found that rather amusing.
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