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RETURN TO CONTENTS | PREVIOUS | NEWS
BY
MIKE HARRISON |
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| ‘The
job has NOT been downgraded’ |
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So speaks Nigel Griffiths, the new Minister for Small Firms, except that he's not really a Minister. As a government Minister you're in the eye of the storm from the moment the Prime Minister calls with the job offer. Even while you're trying to find out what your new department does, the public demands to hear your ideas. The new Minister for Small Firms, Nigel Griffiths, got no more respite than the rest and, to his credit, found time for an interview with First Voice just two weeks into the job. Looking over his shoulder is the previous holder of his job - Patricia Hewitt, now promoted to be his boss as Secretary of State at the DTI. But Griffiths is a mere Parliamentary Under-Secretary, whereas Hewitt held her appointment in the previous government as a full-blown Minister. He appears to have been made a relatively small fish in the eight-Minister pond of the DTI. Nigel Griffiths is not having any of that: 'I'm very robust with people who ask if the job has been downgraded. Certainly not! It is my absolute major area of responsibility. For the first time we have a small business Minister whose Number One priority is small business. I'm not having to devote disproportionate amounts of time to other sectors.' Griffiths on.red tape Griffiths's responsibility for better regulation will keep him at the forefront of controversy. The fact remains that much existing legislation leaves businesses in the role of unpaid tax collectors and social security offices. The Government at last appears to acknowledge the problem and has instituted a review. Griffiths is enthusiastic: 'I think that is the best news that small business has had in a long time. We've got somebody coming in with a strong business experience whose sole purpose is to relieve burdens on small and other businesses in payroll taxation.' For him, the immediate remedy to much of the burden of payroll and other administration is not so much to get rid of the legislation as to streamline the process of complying. .sticks and carrots Griffiths believes that some of the objection voiced by small businesses dealing with regulations comes from the fear that a simple slip will have instant, heavy consequences. This could be eased, he thinks, by giving enforcers more discretion to advise. He reckons that inspectors of all kinds should act more as teacher than policeman, giving time for compliance after discussing what is needed. .consultation Griffiths inherits the SBC, along with the Small Business Service (SBS), which it oversees and advises.
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'I don't think there's any doubt of the impact of the SBC. The fact that the chairman, William Sargent, has the ear of the Prime Minister, that his views are considered to be of great importance tells me a great deal. I see my job as to make sure that the views of the SBC are translated into action'. The Director of the Small Business Service, David Irwin, also has direct access to the Prime Minister. His recent revamp of the national Business Links organisation gives further hope to Griffiths. .growth He is clear that by comparison with SMEs in some other countries - particularly the US - over-reliance on debt finance, excessively negative reactions to failure, and an unwillingness by many owner-managers to share control with investors, all put a brake on growth. As a first step towards improving their prospects Griffiths is backing proposals by the National Business Angels Network (NBAN) to allow companies to make their first approaches to potential financiers anonymously. This 'blind date' approach should go some way to reassuring them that they will not lose confidentiality or control. .access to government contracts The FSB, the SBC and advisory bodies point out that changes in practices in national and local government are making it very difficult for smaller firms to tender for official contracts. Lists of approved suppliers are being reduced and criteria for tendering tightened up. 'What we've got is a drive for efficiency that's swinging the pendulum too far away from the smaller firms. My job is to shift it back a bit. Of course, you have to show that you're not an Arthur Daley type, but - and I'm speculating - we may be setting thresholds and hurdles for bureaucratic convenience and making barriers for SMEs. I'm sure that small businesses can sometimes provide a better, more intimate and more responsive service than big ones. I'm going to look hard at this.' For the full article, see pages 20-22 of the August/September 2001 issue of First Voice
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Whilst every care has been taken in the compilation of this magazine, errors and omissions are not the responsibility of the publishers or of the editorial staff. Opinions expressed are not necessarily those of the publishers or editorial staff. All rights reserved. Unless specifically stated, goods or services mentioned are not formally endorsed by the FSB which does not guarantee or endorse or accept any liability for any goods and/or services featured in this publication. Copyright NFSE (Sales) Ltd 2001 |
