SMEs 'encourgaged to take on apprentices'

31st March 2011

The coalition's plans for apprenticeships dominated questions to business ministers in the Commons today.

Skills minister John Hayes said the government is working to reduce bureaucracy to make it easier for SMEs to take on apprentices.

Justin Tomlinson (Con, North Swindon) said a lack of information is a major barrier for small business, and suggested that promotional material about apprenticeships be included in the annual business rates mail shot.

Andrew Selous (Con, SW Bedfordshire) drew attention to the "scale of challenge facing the automobile industry", with the institute of mechanical engineers estimating a need for 10,000 apprentices a year in order to be at the forefront of the "electric car revolution".

Barry Sheerman (Lab, Huddersfield) said "we all in favour of apprenticeships these days", but said the government's focus is "something of a figleaf" given that higher education "is in meltdown".

Hayes said apprenticeships are "part of a coherent and holistic approach".

He said they can provide "an important step to bring people from disengagement to engagement", which is why there was more money in the budget for apprenticeships.

Pat McFadden (Lab, Wolverhampton SE) called on ministers to reconsider the denial of a loan to Sheffield Forgemasters "in order to boost our position in civil nuclear trade".

He asked if the government is still committed to new nuclear stations in light of comments from the deputy prime minister.

Business minister Mark Prisk said the government's position on new nuclear power stations is clear and Forgemasters should bid for funds from the regional growth fund.

Stephen Metcalfe (Con, South Basildon and East Thurrock) asked for some form of payment guarantee for SMEs trading in difficult markets such as Africa.

Business secretary Vince Cable said companies are advised to take out insurance and if that is not available the Export Credits Guarantee Department should underwrite their trade.

Adrian Bailey (Lab, West Bromwich East) asked if UKTI's export schemes will be protected from the 17 per cent cuts to the organisation.

Cable said UKTI will increase its range of activities despite the cuts.

Mark Prisk was asked about local enterprise partnerships.

He said the government would let local authorities decide where they should be, and ministers will not impose a "command and control model" from Whitehall.

Vince Cable was challenged about his promise to create a "one in, one out rule on regulation" of business.

Shadow minister Gordon Banks said the record so far is "53 in, three out".

He said a recent repeal of a regulation relating to German-owned property after World War Two did little to help British business and at the current rate it will take 7,000 years to review 21,000 regulations as promised.

Cable replied that he cannot stop EU regulations, while others were about the minimum wage.

He said that despite Labour's "considerable political versatility at the moment", he was not aware they had not got round to the abolition of the minimum wage.

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