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Regulatory Impact Assessments
Mrs. Curtis-Thomas: To ask the Secretary of State for Trade and Industry what recent representations the Small Business Service has received from the Small Business Council on regulatory impact assessments. [46303]
Nigel Griffiths: The Small Business Council is working with the Small Business Service to develop and implement an updated version of the so-called Litmus test, which forms part of the regulatory impact assessment procedure. It has also asked the Small Business Service to analyse the cumulative burden of regulation on small businesses.
Construction Industry
Vernon Coaker: To ask the Secretary of State for Trade and Industry what assessment she has made of the effectiveness of employment legislation in the construction industry; and if she will make a statement. [45757]
Mr. Wilson: The Government's programme of employment legislation represents a balanced package of measures. The goal is to ensure that the UK has a modern productive workplace for the 21st century and a flexible labour market to be competitive and at the same time ensure minimum standards for workers.
The Government do evaluate, as far as possible, employment legislation across the economy. However, they have not assessed separately the effectiveness of employment legislation in the construction industry. The effects of new employment legislation on the economy as a whole and the labour market are assessed through the Government's Regulatory Impact Assessment (RIA) process. Where appropriate these RIAs include an industry based assessment. This is the case where industries are affected to different degrees. The regulatory impact assessments are carried out on each new proposal to evaluate the likely costs and benefits.
Business Links
Brian Cotter: To ask the Secretary of State for Trade and Industry what (a) amount and (b) proportion of the DTI's budget has been allocated to support Business Links over the past five years. [46192]
Nigel Griffiths [holding answer 25 March 2002]: The proportion of the DTI's budget that has been allocated to support Business Links over the past five years is:
| Business link | DTI | Per cent. | |
|---|---|---|---|
| 1996–97 | 115 | 2,861 | 4.0 |
| 1997–98 | 129 | 2,847 | 4.5 |
| 1998–99 | 118 | 2,909 | 4.0 |
| 1999–2000 | 120 | 3,370 | 3.6 |
| 2000–01 | 137 | 4,355 | 3.1 |
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User Consultation
Mr. Bercow: To ask the Secretary of State for Trade and Industry what new steps her Department took in 2001–02 to consult the users of its services about their wishes and expectations; and if she will publish the findings. [47311]
Ms Hewitt: In June last year I announced two major reviews—one of the priorities and structure of my Department, and the other of its support for business. During those reviews almost 1,500 organisations and individuals gave us their views. These were gathered through regional workshops, face to face discussions, direct correspondence and specially commissioned market research. Views were also received via the DTI website mailbox.
Details can be found in the "House of Commons Trade and Industry Committee, Reviews of DTI Structure and Business Support—Minutes of Evidence, Wednesday 12 December 2001 (HC 454–1)".
Relocation
Annabelle Ewing: To ask the Secretary of State for Trade and Industry what plans she has to relocate executive agencies and non-departmental public bodies under the remit of her Department to Scotland. [47947]
Ms Hewitt: The locations of my Department's executive agencies and non-departmental public bodies are determined by business need and, accordingly, they already have a strong presence in Scotland. All but one of the Agencies have offices throughout Scotland and the non-departmental public bodies are also well represented with offices in 24 different locations. In addition my Department's headquarters has four offices in Scotland.
Performance Targets
Mr. Bercow: To ask the Secretary of State for Trade and Industry what the timescale is for achievements of the PSA target to put in place policies to narrow the productivity gap relative to other industrialised countries over the cycle. [47354]
Ms Hewitt: The joint DTI/HM-Treasury PSA target is to improve UK competitiveness by narrowing the productivity gap with the US, France, Germany and Japan over the economic cycle. The Government has put in place a wide range of policies to drive up productivity by improving innovation, investment and skills and by fostering enterprise and fair competition. A full assessment of performance against the PSA target can only be made once the current economic cycle has ended. The methodology for identifying the economic cycle is given in the document "Fiscal policy: public finances and the HM Treasury", published in March
Mr. Bercow: To ask the Secretary of State for Trade and Industry what recent assessment she has made of whether the PSA target to narrow the productivity gap relative to other industrialised countries over the cycle will be met by June 2005. [47356]
Ms Hewitt: The DTI and HM Treasury are monitoring performance against the PSA target to improve UK competitiveness by narrowing the productivity gap with the US, France, Germany and Japan over the economic
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cycle. They will make a full assessment of whether the PSA target has been achieved at the end of the current economic cycle.
Mr. Bercow: To ask the Secretary of State for Trade and Industry if she will make a statement on performance in 2000–01 against the PSA target to narrow the productivity gap relative to other industrialised countries over the cycle. [47355]
Ms Hewitt: The most recent data published by ONS show that the UK had a labour productivity gap, on both a per worker and a per hour worked basis, with the US, France and Germany in 2000. It also shows that since 1997 the productivity gap on both a per worker and per hour basis has remained broadly unchanged with France and Germany. The gap with the US has remained broadly the same on a per hour basis, but has widened on the per worker measure. However, a full assessment of the PSA target can only be made once the current economic cycle has ended. The latest data are available from ONS's website www.statistics.gov.uk/themes/economy/Articles/ nationalaccounts/international_comparisons_productivity.asp.
Mr. Bercow: To ask the Secretary of State for Trade and Industry what new initiatives her Department has taken in 2001–02 to assist in achieving its Public Service Agreement targets. [47202]
Ms Hewitt: General information on the work carried out by the Department during 2001–02 in pursuit of its Public Service Agreement targets will be incorporated in the Departments' 2002–03 to 2003–04 Expenditure Plans Report, due to be published in May. Copies of the report will be placed in the Libraries of the House.
Mr. Bercow: To ask the Secretary of State for Trade and Industry what recent assessment she has made of whether the PSA target to increase the productivity and profitability of SMEs assisted by Business Link Partnerships, and to show year by year improvements in the quality of services delivered under the Business Link brand will be met throughout the period June 2001 to June 2006. [47357]
Ms Hewitt: An impact assessment framework has been established to track the productivity and profitability of SMEs assisted by Business Link Partnerships. The time lags involved in collection of these data mean 2001 figures will not be available until at least 2003 and this will continue throughout the specified period. Early results show that a large majority of BLO clients first assisted in 1997–98 demonstrated increases in productivity. The average increase was 30 per cent. for Business Link clients compared to 18 per cent. for non-clients. Profitability also increased with 42 per cent. of clients having a positive profile compared to 40 per cent. for non-clients.
The quality of services delivered under the Business Link brand will be measured via customer satisfaction. Results of a new Customer Satisfaction Framework, requiring each operator to carry out independent customer satisfaction surveys every six months, will be available from spring 2002. In the interim the SBS Omnibus Survey (using a relatively small sample of Business Link users) suggests that satisfaction is in the 75–80 per cent. range of regular users, but less so for past and infrequent users.
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Mr. Bercow: To ask the Secretary of State for Trade and Industry what recent assessment she has made of whether the PSA target to maintain or improve levels of energy security, diversity, sustainability and competitive energy price will be met. [47345]
Ms Hewitt: The public service agreement target to maintain or improve levels of energy security, diversity, sustainability and competitive prices has been updated for 2001–2004 to:
- "to develop strong, competitive markets within a regulatory framework which promotes fairness and sustainability".
This was set out in the "Spending Review 2000: Public Service Agreements 2001–04" White Paper (Cm 4808).
- Ensure competitive gas and electricity prices in the lower half of the EU/G7 basket, while achieving security of supply and social and environmental objectives.
Improve the environment and sustainable use of natural resources, including by reducing greenhouse gas emissions by 12.5 per cent. from 1990 levels and moving towards a 20 per cent. reduction in CO2 emissions by 2010 (joint target with DEFRA).
- Competitive energy prices
- Overall, in 2000, based on incomplete data, it appears that UK industrial and domestic gas prices were in the lower half of the EU/G7 basket. UK domestic electricity prices including taxes and industrial prices including taxes were also in the lower half of the EU/G7 basket during 2000. Figures for the UK show that electricity prices have fallen in 2001.
- Security
- The Department's target to maintain or improve the number of electricity power supply interruptions per 100 customers, and average time lost was not met in 2000–01 as it increased to 84 interruptions per 100 customers with 86 minutes lost per customer from 81 interruptions per 100 customers and 71 minutes lost per customer in 1999–2000. Oil stocks are also monitored, with a target to maintain national emergency oil stocks at, or above, levels required by international obligations. At the end of January 2002 the UK held stocks equal to 82 days of consumption, compared with an obligation of 67½ days.
- Diversity
- The Department has a target to achieve 10 per cent. of electricity generated from renewable resources by 2010, subject to the costs to consumers being acceptable. The percentage of electricity generated in the UK from all renewable sources in 2000 was 2.8 per cent. Detailed renewable energy statistics for 2001 are not yet available, but provisional figures show that large scale hydro schemes provided about 0.8 per cent. of electricity generation in 2001 compared with 1.2 per cent. in 2000. This was because of lower precipitation in Scotland during the winter of 2000–2001. However, it is expected that generation from other renewable sources will have increased in 2001.
- Social
- The Department has introduced a social target of fuel expenditure as a percentage of income (including housing benefit and income support for mortgage interest) for the lowest three income deciles to be reducing and below 5 per cent. by 2003–04. Over the last four years fuel expenditure as a percentage of income has generally been reducing and in 2000–01 was 7 per cent.
- Sustainability/Environment
- Although provisional figures indicate that CO 2 emissions were higher in 2001 than 1999 and 2000, due to increased coal burn in power stations as a result of higher gas prices, and colder weather in the winter months, CO 2 emissions are nevertheless 6 per cent. below 1990 levels. It is estimated that the quantified measures in
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- the UK Climate Change Programme could reduce carbon dioxide emissions by about 19 per cent. below 1990 levels in 2010. The programme is also designed to stimulate a wider response from all parts of society, which could reduce emissions still further and deliver the 20 per cent. goal.
- In 2000 greenhouse gas emissions were 13 per cent. lower than in 1990. Projections suggest that the UK remains on course to meet its Kyoto commitment to reduce emissions of greenhouse gases by 12.5 per cent. by 2008–12 from 1990 level.
- Sulphur dioxide emissions in 2000 were 76 per cent. lower than in 1980. The Department remains on course to meet the sulphur dioxide emissions target of 80 per cent. below 1980 levels by 2010.
Mr. Bercow: To ask the Secretary of State for Trade and Industry what recent assessment she had made of the date by which the PSA target to secure an increase in the number of successful high growth business start ups will be met. [47358]
Ms Hewitt: An estimate of the number of successful high growth business start-ups has been made annually for the last four years. The estimates are shown in the table. There is an inevitable lag in recording high-growth start ups. For example the 1998 figures relate to businesses first registering for VAT in 1994. An estimate relating to firms first registering for VAT in 1998 will be available later this year.
| Year started | Number of firms | Year progress known |
|---|---|---|
| 1994 | 12,300 | 1998 |
| 1995 | 11,800 | 1999 |
| 1996 | 11,100 | 2000 |
| 1997 | 11,200 | (104)2001 |
(104) Provisional
Mr. Bercow: To ask the Secretary of State for Trade and Industry if she will set out the criteria and timescale for the measurement of progress against the PSA target to secure an increase in the number of successful high growth business start-ups. [47360]
Ms Hewitt: The aim of the target is to raise the number of successful high growth business start-ups to 20,000 a year by 2002. A successful high growth start-up is defined as a firm having 10 or more employees and/or turnover of at least £1 million by the fourth year of trading. an estimate of the number of successful high growth start-ups is produced annually. The estimate for 2002 will be available in 2007, as there is an inherent four year time lag and a further one year time lag in collating the data.
Mr. Bercow: To ask the Secretary of State for Trade and Industry what the definitions are of (a) successful and (b) high growth in the PSA target to secure an increase in the number of successful, high growth business start-ups. [47353]
Ms Hewitt: A successful high growth start-up is defined as a firm having 10 or more employees and/or turnover of at least £1 million by the fourth year of trading.
Mr. Bercow: To ask the Secretary of State for Trade and Industry what recent assessment she has made of whether the PSA target to increase by 50 per cent. the 1997–98 number of companies spun out from universities by 2001–02. [47350]
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Ms Hewitt: I refer the hon. Member to the answer I gave him on 17 December 2001, Official Report, column 118W.
Mr. Bercow: To ask the Secretary of State for Trade and Industry what recent assessment she has made of whether the PSA target to make the UK the best place in the world to trade electronically will be met by (a) June 2005 and (b) June 2006. [47347]
Ms Hewitt: The DTI's e-commerce PSA target is to make and keep the UK the best place in the world to trade electronically, as measured by the cost of internet access, and the extent of business to business and business to consumer transactions carried out over e-commerce networks by 2004. The DTI works with Oftel and the Office for National Statistics in order to measure these indicators.
- The UK is ranked third lowest with regards to narrow band internet access costs in OECD countries and second lowest in the G7.
The UK is among the leading group of countries on the number of businesses trading online and other key measures.
The UK has the one of the largest e-commerce markets in Europe, with e-sales representing over 5 per cent. of the value of total sales
In May 2001 the total value of business to business transactions in sectors covered amounted to 6 per cent. of total value of sales.
In May 2001 figures showed that £10 billion of sales over the internet were from businesses to households.
Ms Hewitt: By November 2001 the UK had transposed 97.2 per cent. of EU single market directives due by that date. By the time of the Barcelona Council in March 2002, the UK had increased its transposition rate to 98.7 per cent.
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