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Mr. Chidgey: I welcome the hon. Gentleman's comments. Does he share my concern that, in our economy, over time, the amount of investment in R and D as a proportion of GDP has fallen compared to the nations with which we compete? Is the Government's policy to try to restore, over time, the level of R and D investment as a proportion of GDP to one that at least equals that in our competitor nations?
Mr. Wills: The hon. Gentleman is right. We inherited a desperate situation when we came into office. I agree with him on that point. We are taking the necessary measures to put right that situation. There is now a Labour Government and we are moving forward--at last. We are investing in the skills of our people--the crucial underpinning for the enterprise economy. We are providing £21 billion new money for education; we are setting up the university for industry to encourage lifelong learning. By 2002, we shall give every school in the country access to the unique learning opportunities afforded by the internet--95 per cent. of those schools
will be connected by a high-speed ISDN line. We are using the best technology that is available; we shall carry on doing so for our children's future.
Mr. Bercow: I suspect that the hon. Gentleman's compendium of knowledge on that latter point is not as comprehensive as it might be. Does he think that it is right that Gawcott county first school, a very small school in my Buckingham constituency, should pay the same for line rental, for the purposes of internet access, as a large comprehensive? That is the current position.
Mr. Wills: As always, I am astonished by the hon. Gentleman's knowledge of his constituency. If he gives me details about that school, I shall be happy to look into it.
In relation to the general point about line access, we realise that, if we are to build the essential electronic infrastructure, it is a fundamental goal that we must roll out those technologies as quickly as possible; that means considering the whole question of internet access.
Oftel--the Office of Telecommunications--published a consultation on the matter and is digesting the results. We await Oftel's proposals. I assure the hon. Gentleman that these matters are close to my heart and to that of the Government.
We have launched the £20 million reach-out fund which will help to foster closer links between universities and business. We are also increasing the DTI's innovation budget over the next three years to some £230 million.
We all agree that small firms will be the crucial motor for growth and prosperity in the years ahead. We are launching the Small Business Service to create a ladderof opportunity for all small businesses, to helppeople move from employment or unemployment into self-employment, to help them over that critical stage in self-employment when they take on their first employee, and all the way up the ladder.
When small firms face critical barriers to growth, the Government will offer help if they want it. We are not thrusting it down their throats. We are leaving them to get on with it, but sometimes businesses need help and support, because markets do not always work perfectly. With his in-depth knowledge, the hon. Member for Rutland and Melton knows that the markets can be lumpy and patchy, and small firms often face particular barriers to growth. The Government will be there to help them if they want.
One of the most onerous administrative burdens that small firms face is administering the payroll. We will help them with the automated payroll service. We will help them with the burden of regulation, in the way that has already been discussed. We will help small firms with access to appropriate finance. There is a critical equity gap for many small firms--
Mr. Wills:
I will make progress, if I may.
We will help small firms with the critical equity gap by rolling out regional venture capital funds, which will help with the smaller packets of venture capital that are so lacking at present. [Interruption.] I know that Opposition Members are talking among themselves and are not very
interested in what we do for small firms. They should be more concerned than they are. It is all very well talking the talk now, but when they were in government, they did not walk the walk.
I remind Opposition Members that the average net loss of small businesses in every year of the 1992 to 1997 Government--that is, the surplus of companies closing over companies opening up--was 72,000. In 1992, more than half a million companies closed down. That represents half a million heartbreaks for the people who risked everything, worked hard and were let down by the Government.
By way of contrast, in the first full year of a Labour Government, there was a net gain of 36,000 businesses opening up. That is the difference between us and them. There was a net loss, on average, in every year of the John Major Government, with 72,000 companies closing. Under new Labour, there has been a net gain of 36,000 companies opening.
Mr. Deputy Speaker (Mr. Michael Lord):
Order. Before the hon. Gentleman intervenes, I remind the Minister that he must refer to hon. Members by their constituency.
Mr. Wills:
Indeed, Mr. Deputy Speaker. I apologise.
Mr. Duncan:
What concerns us is that the Minister's long litany of action that the Government will take--he got quite animated when he was citing it--smacks of Government intervention and Government intrusion. Is he saying that the regional venture capital funds will be state funds, or will they be entirely private enterprise funds?
Mr. Wills:
The hon. Gentleman should recognise the difference between intrusion and support. I hope that, as the months unfold, he will grow to learn and appreciate the distinction between them. On regional venture capital funds--
Mr. Wills:
I will deal with that point, if I may, and then give way to the hon. Gentlemen, who are obviously desperate to intervene again.
Regional venture capital funds will be a private-public sector partnership. We are putting in public funds to lever in considerably greater sums of private sector capital. We have been working closely with the private sector on the matter.
Mr. Chidgey:
I have listened with great interest as the Minister has expressed enthusiastic support for small business in particular. Will he address a particular issue? A recent survey has shown that there is only 6 per cent. take-up of Government programmes by business. What, precisely, will he and the Government do to improve that?
Mr. Wills:
I again make the point that we are there to offer support for business if and when it wants it. We are
Mr. Bercow:
In waxing lyrical about the fortunes of small firms under the Government, the Minister exudes alarming complacency. Does he accept the findings of the Dun and Bradstreet survey, which shows in the first quarter of this year a 32 per cent. increase in small company liquidations relative to the same period last year? In particular, does he acknowledge that the percentage increase in his--[Interruption.] I do hope he is attending to the point; it is of the utmost significance. The increase in small company liquidations in his own south-west region is 40 per cent. Does he accept that? Is he worried by it? Will he show a bit of concern? Above all, will he do something about it?
Mr. Wills:
I had hoped that the hon. Gentleman knew me well enough by now to know that I am never complacent about anything. Governments can always do better and we will not take things for granted, which is the trap that the previous Government fell into. Businesses, too, can always do better and everything the Government have done shows that we are not complacent.
One reason for rolling out the Small Business Service is that we think that business support can be made better still. We will welcome all views on that, including those of the hon. Member for Buckingham. We want to make sure that mechanisms are in place to provide business with the support that it deserves and needs. If he wants to come up with further suggestions, I can assure him that they will be gratefully received, if not necessarily acted on.
If I may, I shall move on to Europe. Given the visceral instincts of the Conservative party towards the European Union and the European single market, it was perhaps inevitable that a debate about innovation and enterprise would somehow end up on that issue. Labour Members believe that the innovative genius and enterprise of our people could run to waste unless this country is actively engaged with our trading partners to ensure that our companies can sell as easily overseas as they can at home.
We are a great trading people. [Interruption.] Does the hon. Member for Rutland and Melton disagree?
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