National Investment Corporation

Question: Do the Government understand that what firms want is lower taxes, fewer regulations, less red tape and the ability to borrow from their usual bank, many of which the Government control, anyway, so it should not be too difficult to ensure? What is the point, therefore, of this new lumbering state corporation, of the type that we thought we had buried in the 1970s? And how many banks have signed up to it, anyway?

Answer: In terms of the venture capital funds that the Government have been supporting, we have been getting help to small and medium-sized enterprises in order to ensure that they can take advantage of the recovery, when it comes, and develop new technologies and enterprises. Owing to the investment that we have put in, something like £1.5 billion has been given to 600 small and medium-sized enterprises to undertake such work. I know that the right hon. and learned Member for Rushcliffe (Mr. Clarke) says that""the words 'industrial strategy' send a slight shudder down my spine,"" but, if that type of help were not available in his constituency, it would be very bad news for small and medium-sized enterprises.

Secondary information