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2.8 pm
Mr. James Cran (Beverley and Holderness): I congratulate my hon. Friend the Member for South Cambridgeshire (Mr. Lansley) on the clarity with which he explained his Bill, and on his luck in the ballot. I have been in this place for considerably longer than he has, and I have never come close to being successful in the ballot. [Hon. Members: "Ah."] I am very grateful for the response of my colleagues on the Benches behind me.
A private Member's Bill is a double-edged sword, but I do not think that that will be the case with this Bill, as I can confirm that the Opposition support its provisions, as we did when we cantered round this course about this time last year. We share the conviction of my hon. Friend the Member for South Cambridgeshire that there is scope for abuse at present; he eloquently outlined why it occurs. People who are not representative of the business community as a whole, or who are pursuing a private commercial interest, will none the less seek to incorporate the chamber of commerce title, knowing that it gives credibility. Undoubtedly, the title "chamber of commerce" lends valuable assistance to any organisation. In my experience that is most certainly the case, and especially in international trade matters.
At one time I was associated with the Confederation of British Industry. These days, I disagree with one or two of the CBI's policy stances. However, when I was associated with it, I was frequently written to by international organisations which had the title "chamber of commerce". I had to check extremely carefully that it was bona fide, that it was in reality exactly that which it purported to be. It is clearly important that the use of such a title, including the geographic description, is accurate and is applied only to a body that generally meets all the criteria for the proper description of a chamber of commerce.
We accept that the Bill is intended to address weaknesses in existing legislation. When Companies House receives an application for the incorporation of a chamber of commerce, it considers, of course, whether the application will result in a genuine chamber of commerce. The problem
is that no benchmark exists for making such a judgment. I have been advised by lawyers that in law--I should say that I am not a lawyer, for which I think I am grateful--there is no definition that would constitute a chamber of commerce, and that there is no criterion for approval as a chamber of commerce. The Bill will help in that situation as it will provide objective--that is the important word--criteria to be used in determining which bodies should be able to use the title chamber of commerce.
When an application for incorporation is received, the current defences, as I have already said, are simply not good enough. In effect, as others have said, anyone can set up a chamber, canvas for members and sell services under a chamber trade name. I recall that some organisations with which I used to deal did not even have members. They claimed the title and then sold services, which is not acceptable. I think that we all accept that, including the Government. In practice, not a great deal can be done at present to stop this process. That is why my hon. Friend's Bill is extremely valuable.
Although no evidence exists of wide-scale abuse, we may see in future further examples of businesses attempting to sell services under the title "chamber of commerce". In effect, that is all that they are doing. That is why my hon. Friend is correct in what he is trying to do.
Mr. John Butterfill (Bournemouth, West):
I shall be brief because I know that other hon. Members wish to speak. I start by congratulating my hon. Friend the Member for South Cambridgeshire (Mr. Lansley) on introducing the Bill. It is an excellent measure and I think that it will produce a much-needed improvement in the law. I do not think that it is necessary for me to reiterate all the arguments in favour of the Bill which my hon. Friend has adduced.
My constituents are fortunate in that we have two excellent chambers locally: the Bournemouth chamber of trade and commerce and the Dorset chamber of commerce and industry. Both chambers perform an extremely useful local function.
I have one or two detailed concerns about the Bill which I shall flag up in case they may be dealt with in Committee. First, there is nothing in the Bill to provide for deregistration. That seems to be a defect. We have already heard from my hon. Friend that there have been turf wars on occasion in North Yorkshire and in east London. In future, an existing chamber may fall into desuetude and not enjoy the support of the majority of local businesses. If that were the case, an alternative chamber might be proposed by local business men who felt that they could do better than the existing chamber. There ought to be a mechanism by which a chamber can be deregistered. That is not present in the Bill, and I hope that my hon. Friend turns his mind to it.
In clause 2(2), the responsibilities on the Secretary of State to publish guidance are merely permissive--he "may publish guidance". In this day and age, there ought to be a mandatory responsibility for the Secretary of State to publish guidance, and I hope that that can be incorporated in the Bill. Similarly, he may publish guidance
The Bill does not refer specifically to chambers of trade--a description commonly used by many chambers. I have checked the relevant statutory instrument, the Company and Business Names Regulations 1981, and I see that the word "trade" is included. It may reassure members of the public--and existing chambers of trade--if the word "trade" is included in the Bill.
I now refer to the Secretary of State's responsibility in terms of the relevant representative bodies in clause 4. The bodies that he must consult are the "British Chambers of Commerce" and the "Scottish Chambers of Commerce". He can add or delete, but in dealing with local disputes, there should be a responsibility for the Secretary of State to gain some local knowledge.
Mr. Nick St. Aubyn (Guildford):
I am pleased to support the Bill, and I was a supporter of the Bill proposed by my hon. Friend the Member for South Cambridgeshire (Mr. Lansley) in the previous Session. One day, he may be in a position to support one of my Bills--if I am lucky enough to come as high in the ballot as he has.
I support chambers of commerce. My local chamber of commerce in Guildford, and the Surrey chamber, support the Bill. I support chambers of commerce because they stand up for the little guy. As big business reaches out across the world, it is harder for small companies to export. The role of chambers of commerce in helping exports is significant. They organise hundreds of overseas trade missions, securing nearly £1 billion a year of additional business for those who go on them. They also assist smaller companies with export documentation.
In other European Union countries, chambers of commerce are taken more seriously and have more power. As the single market develops, and with it opportunities for foreign companies over here, we must have a strong system of chambers of commerce to help our smaller companies develop their business opportunities across Europe and the rest of the world.
The Minister for Energy and Industry (Mr. John Battle):
I thank the hon. Member for South Cambridgeshire (Mr. Lansley) for bringing forward the Bill. He began by declaring an interest. I hope that he was proud to declare it, because he brings welcome and valuable experience to the Bill. The Government support the Bill. The speeches that have been made suggest that there is a consensus in the House in support of the Bill.
The term "chamber of commerce" and some other related titles are already declared sensitive under the Companies Act 1985. Their use is at the discretion of the Secretary of State. The British Chambers of Commerce is concerned that Companies House has no legal requirement to consult it on new applications for use of the title, although I understand that in practice that happens. The Bill will ensure that the Secretary of State consults the British Chambers of Commerce or the Scottish Chambers of Commerce when determining whether expressions such as "chamber of commerce", "chamber of trade" or "chamber of commerce, training and enterprise" may be used as part of a registered company or business name. The Bill provides for the names to be specified by statutory instrument under existing companies and names legislation. The link will help to advertise more widely to the business community that it needs to seek approval before a relevant name can be used for a company or business.
The term "chamber of commerce" comes from French. I understand that we are not allowed to speak French in the House and I shall not try to imitate a French accent. The term "chambre de commerce" was introduced in 1601. It came into the English language when the first chamber of commerce was founded in Jersey, the nearest territory to France, in 1768. The Glasgow and Belfast chambers were set up in 1789, with another chamber in Edinburgh and one in my city of Leeds--of which I am rather proud--in 1785. I received letters and petitions from the Leeds chamber of commerce inviting me to support the Bill. I am sure that other hon. Members received similar letters from their local chambers. I hope that all hon. Members will get behind their chambersof commerce and the hon. Member for South Cambridgeshire.
The Government support the Bill because it will provide a clear link with existing companies and business names legislation in providing that the Secretary of State will consult before determining whether to agree to the use of the titles, including the phrase "chambers of". The Bill also provides that the Secretary of State may publish guidance setting out the factors that he will take into account in reaching his decision. No existing organisations using the titles will lose the right to call themselves a chamber under the Bill.
The British Chambers of Commerce is working hard to ensure that standards among its members are high through an accreditation scheme, which I believe was introduced
three years ago. A programme of quality and performance improvement has led to the creation of a core of 60 effective approved chambers, each of which meets stringent accreditation standards. I understand that only a few small and localised chambers continue outside the BCC. I encourage them to join the accreditation scheme, because it is vital to the competitiveness of the UK that the business community at local and national level can recognise quality services designed to enhance business competitiveness.
The role played by chambers of commerce at the local level cannot be underestimated. There are 120,000 business members in chambers nationally. Some 75 per cent. of them are in the five to 500 employee range and some 40 per cent. of them are exporters. They have the largest representative base of SME businesses in the country.
The Government fully recognise the work of the British Chambers of Commerce and see it as a valuable partner in the work that we are doing in progressing the competitiveness agenda that we set out in the White Paper just before Christmas. The chambers work at local level but, through their local work, they advise the Government, at the national level, on the complex and varied interests and issues that concern business on the ground, and their contribution is vital in Departments across Whitehall. They are a major partner in the business link network, which is a key deliverer of business support services, and are fully involved in the drive to ensure that high-quality, appropriate and effective business support is available to all businesses.
The national campaign for enterprise, led by the BCC, is an exciting and valuable exercise in spreading the enterprise message to produce a rather more entrepreneurial culture, which also gives advice on where to go for the best advice and back-up.
A major part of the BCC's work centres around increasing the export potential of UK companies, and chambers of commerce nationally are involved in over 170 missions to over 100 countries each year, which have resulted in follow-up business of over £745 million. That is a major contribution to the economy. We hope that they will participate fully in the setting up of the regional development agencies--they have work to do there.
The Government are happy to support the British Chambers of Commerce through the Bill, which will provide a clear link with existing legislation on the protection of business and company names. It is encouraging that the Bill is receiving support from all parties and, I hope, all hon. Members. The chambers of commerce are seriously valued as a contributor to the Government's initiatives. They have worked continually and enthusiastically to introduced accreditation systems. The Bill echoes steps that the Government are taking to ensure that businesses receive the representation and assistance needed to ensure increased competitiveness in our economy.
Statutory recognition of the title "chamber" will give a moral boost to the cause of quality support to businesses. We owe thanks to the hon. Member for South Cambridgeshire for his patient efforts in developing the Bill and tackling this small but vital matter.
Question put and agreed to.
"with respect to factors which may be taken into account in determining whether to approve the registration"
--but when?
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