Industry (Government Support)

Catherine McKinnell Excerpts

Wednesday 16th June 2010 Commons Chamber

[Vince Cable]

That is absolutely right. The basic problem—and the reason that it is taking some time to explain the matter to the Opposition—is that the Opposition believe that the status quo must be protected because they invented it. There will, however, be fundamental changes.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Will the Secretary of State give way?

[Vince Cable]

I have taken enough interventions.

To conclude as I started, we need private sector-led growth to offset the very difficult cuts that will have to be made in the public sector to restore financial sanity. Some initiatives will require direct Government intervention, but many will not. For example, we are committed to removing the burden of regulation, which mushroomed to alarming proportions. One key step that must happen, and that failed miserably under the previous Government, is to ensure an adequate supply of credit for small and medium-sized businesses. We must have a tax system that is friendly to business, that encourages companies to come here and that is simple. Most fundamentally, however, business wants the Government to clear up the mess in the public finances, as all the business associations make absolutely clear. I do not know how many of the business associations the right hon. Member for Tottenham has talked to, but, with regard to his comments about a business recovery, the business associations make it absolutely clear that they cannot develop business in Britain unless the mess in the public finances is sorted out. They need confidence, certainty and an assurance that the cost of capital will not escalate because of the crisis in finance. That is the priority, that is what we are working on, and that is how the recovery will take place.

Oral Answers to Questions

Catherine McKinnell Excerpts

Thursday 3rd June 2010 Commons Chamber

[Mr Prisk]

I am very pleased to accede to that request. My hon. Friend is an excellent advocate of that vital part of our economy. It is crucial that we are open to fresh ideas, so I look forward to hearing those representations, and if he will contact my office, we can arrange that as soon as possible.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

With reference to the Minister’s desire to help small businesses, it has to be accepted that some effort needs to be made to create the right environment for manufacturing businesses. Will he therefore please explain the Government’s plans to remove the annual investment allowance, which helps thousands of manufacturing businesses, hundreds of which are in my constituency?

[Mr Prisk]

The hon. Lady is right to point out the importance of manufacturing; it is a crucial part of our economy. Sadly, it became imbalanced when her party was in power, and we need to change that. On the tax measure in question, and the representation that she made, she will understand that we are in the period running up to Budget purdah and need to be careful not to get ahead of what I think the Chancellor’s ambitions will be, but at the CBI dinner he made it very clear that, as regards corporation tax changes, we will not act in any way that impugns manufacturing in any form.