Payment and Recovery of Family Credit

Part of Orders of the Day — Clause 19 – in the House of Commons at 9:45 pm on 19 May 1986.

Alert me about debates like this

Photo of Mr Andrew Rowe Mr Andrew Rowe , Kent Mid 9:45, 19 May 1986

Every time I think that I shall be persuaded by the Opposition, I have only to listen to the hon. Member for Oldham, West (Mr. Meacher) to find my faith in what I was about to say rudely shaken. However, I must say again that the small businesses and the people who do not have the time or cash to join the relevant organisations are distressed by the thought that yet another function formerly discharged by central bureaucracy is to be discharged at their own hand. It is ironic that the Government have rightly paraded as one of the great triumphs of policy the creation of hundreds of thousands of small companies in the last two years. Every 100 firms which began on the enterprise alliance created 99 new jobs.

Companies of that size not only do not want the additional paper work which would result from such schemes, but their perception is tharge if they make a mistake in the administration of the scheme they will lay themselves open not only to inspection but to the law. There are quite enough perceived and real impediments to setting up a small business for that to be an additional disincentive.

Many small firms are teetering on the brink each day. They might have to go in the end. They might employ two or three people and many in charge are at an age when it is not easy to adapt to change and they are frightened of additional burdens. They might decide to bring forward by three or four years the day when they put up the shutters with the consequent loss of employment which we cannot afford at this time.

I am practical enough to know that it is improbable that at this late state the Government will be able to reverse all that they said in Committee, although I hope that they will. At least may we have an assurance that the Government will look at the matter carefully and, if events turn out as I fear, that they will reverse the policy?