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17 Sept 2003 : Column 765W—continued
Higgs Review
David Wright: To ask the Secretary of State for Trade and Industry what steps her Department has taken to implement the findings of the Higgs review of the role and effectiveness of non-executive directors. [129916]
Jacqui Smith: The Government warmly welcomed the Higgs Review. The majority of the recommendations of the Review were for changes to the Combined Code. The Code is the responsibility of the Financial Reporting Council, which published a revised Code on 23 July this year. The Government believe that this will provide a clear and robust framework to improve the performance of boards and increase investor confidence.
Following the Higgs Review, my right hon. Friend the Secretary of State asked Professor Laura Tyson, Dean of the London Business School, to consider how a broader range of non-executives might be identified and recruited in order to improve board effectiveness. Laura Tyson's report was published on 19 June. The Department of Trade and Industry s currently engaging with various stakeholders in order to take forward Professor Tyson's recommendations.
The Higgs Review also recommended the development of guidance on directors' and officers' insurance. The Institute of Chartered Secretaries and Administrators are currently developing this.
IT Security
Mrs. Curtis-Thomas: To ask the Secretary of State for Trade and Industry what steps she has taken to review the security of the Department's IT system; and how many digital attacks there were on the Department's system in the last six months. [129507]
Ms Hewitt: All DTI IT systems are designed in accordance with HMG IT security policy.
The core Department's internal IT system undergoes a regular cycle of security testing in line with its security policy. In addition, the processes and procedures of those parts of the Department responsible for overseeing its IT services are subjected to six monthly independent audit as part of our certification of compliance with BS 7799 Part 2.
During the past six months, one attempted digital attack was identified which failed.
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Nanotechnology
Mr. Wray: To ask the Secretary of State for Trade and Industry what assistance is given to companies researching nanotechnology; what proposals she has to increase its use in British industry; and if she will make a statement on (a) its future and (b) the improvements it can bring. [129153]
Ms Hewitt: Support for nanotechnology research and training in excess of £125 million over the last six years has been provided by OST, via the Research Councils, to UK universities. This has laid a solid foundation for future commercial investment and exploitation. The SBS "Smart" Scheme has helped many small companies, including university spin-outs, to develop their ideas from this technology. Other initiatives, for example the LINK Basic Technologies for Industrial Applications R&D programme, and other LINK programmes in the electronics, IT, chemicals, materials, and biotechnology sectors; although not dedicated to nanotechnology, have also supported projects that enable UK companies to collaborate with universities and commercially exploit this technology.
On 2 July my noble Friend the Minister of State for Science and Innovation announced a £90 million programme over the next six years to help industry harness the commercial opportunities offered by nanotechnology. My Department is partnering with the Regional Development Agencies and Devolved Administrations to facilitate regional investment in facilities.
Ofgem
Mrs. Helen Clark: To ask the Secretary of State for Trade and Industry what discussions she has had with Ofgem following their announcement of the possible shortfall in the Roc fund; what measures (a) are being taken and (b) are planned to avoid a shortfall; and what assessment she has made of the impact of this announcement upon the renewables industry. [128870]
Mr. Timms: My officials are discussing the possible shortfall with Ofgem, and with representatives from the renewables industry. Since the extent of any possible shortfall will not be clear until 1 October, it is too early at this stage to assess the impact on the renewables market or to propose measures to address the possible shortfall or to avoid the problem recurring in the future.
In the interim, Ofgem are in communication with the administrators over compliance with the Renewables Obligation.
Productivity Gap
Mr. Dhanda: To ask the Secretary of State for Trade and Industry what action she is taking to close the productivity gap with other European Union countries. [128204]
Ms Hewitt: Today my Department publishes its strategy, setting out our priorities for the next five years to narrow the productivity gap with our competitors, including those in the EU. A copy of the strategy has been placed in the Libraries of the House, along with a companion paper setting out the analysis on which the strategy has been built.
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The Strategy focuses on practical action where the Department can have the greatest impact:
- helping business to access the knowledge and ideas it needs to innovate;
encouraging employers and employees to improve their skills and create more productive, high performing workplaces;
ensuring the right frameworks exist so that markets are open and fair at home and overseas;
ensuring that all regions are able to fulfil their economic potential.
Red Tape
Mr. Bellingham: To ask the Secretary of State for Trade and Industry what assessment her Department has made of the number of jobs that have been lost to the British economy as a result of regulations on business introduced since May 1997; and if she will make a statement. [129390]
Ms Hewitt: Since 1997 over 1.5 million jobs have been created within the British economy and the number of people in employment is currently at 27.92 million, the highest since records began in 1984. The claimant count rate of unemployment benefits is the lowest for 27 years.
A Regulatory Impact Assessment is produced for all regulations that have a cost to or benefit for business as part of the policy development process. These are prepared in consultation with industry and the Small Business Service.
Safeway
Mr. Bellingham: To ask the Secretary of State for Trade and Industry when she will make an announcement on the proposed takeover bids for the Safeway chain of supermarkets. [129394]
Ms Hewitt: I will announce my decision on the proposed acquisition of Safeway alongside publication of the Competition Commission report. The administrative target for publication of this report is within 30 working days of its receipt from the Competition Commission. As the report was received on 18 August 2003, our aim is to publish by 30 September 2003.
Skills Shortages
Mr. Bellingham: To ask the Secretary of State for Trade and Industry what estimate her Department has made of the annual cost to British businesses, in terms of extra training and lost productivity, of basic skills shortages in the workforce. [129391]
Mr. Ivan Lewis: I have been asked to reply.
There is robust evidence that poor literacy and numeracy skills have adverse effects on the earnings and employment prospects of individuals.
However there is limited evidence on the cost to British businesses of basic skill shortages in the workforce.
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One 1992 study that attempted to quantify the costs to employers of poor basic skills suggested that they were costing companies employing over 50 workers an average of £165,000 a year and for the largest companies (with over 1,000 employees) the costs could be as high as £500,000 per year (equivalent to £208,000 and £626,000 in 2002 prices).
Based on this evidence, the total cost to UK businesses (employing over 50 workers) of poor basic skill levels was estimated to be in the region of £4.8 billion pounds per annum (£6 billion in 2002 prices).
These costs are likely to be underestimated, as they do not account for costs associated with lost future business, the need for additional training because staff may be unable to cope with written material, the cost of work that needs to be re-done or the costs incurred by firms with 50 or fewer employees.
The influential report "Improving Literacy and Numeracy: A Fresh Start" by Sir Claus Moser highlighted further analysis based on this 1992 research study. It suggested that the impact of poor basic skills on the UK economy as a whole could be as high as £10 billion per annum (in 1999 prices).
Stock Exchanges
Mr. Bellingham: To ask the Secretary of State for Trade and Industry if she will make a statement on the potential establishment of regional and local stock exchange bourses for small and medium sized enterprises. [129392]
Nigel Griffiths: Proposals were published by the independent Centre for the Study of Financial Innovation in 2000. I understand that Advantage West Midlands have been developing these ideas, and I have asked for a copy of their proposal.
I am determined to ensure that all UK companies have access to the finance they need to expand with viable products and services, and the DTI has a number of programmes to assist with this.
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