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EEF want government reforms to help SMEs

Published On 22 March 2007 at 11:28:23

The Engineering Employers Federation (EEF) has called on the next prime minister to commit to modernising the government's business support services by creating a single department dedicated to promoting economic growth and productivity.

In a report on the future of how the government should best promote the economic interests of SMEs, the EEF argues that just abolishing the Department of Trade and Industry (DTI) is too simplistic an approach.

Furthermore, the group says that there is currently overlap between the mandates of the DTI and the Treasury. This leads to an inefficient situation where people are unclear of their responsibility.

"The issue of how best government can support business and promote economic growth is far too important to be periodically kicked about from pillar to post," said EEF Director General, Martin Temple.

"Whilst the status quo is not sustainable, the increasing speculation is damaging both to business and to the DTI itself."

Instead, the organisation wants a single government body to be created to take responsibility for the overall co-ordination of strategy and delivery of the productivity agenda.

Equally, the EEF thinks that a new department responsible for energy, transport and planning would be useful. This new 'Department for Infrastructure' would need to liaise with SMEs closely to deliver its strategy.

Mr Temple added: "A single 'Infrastructure Department' could provide much needed focus to addressing the crucial challenges of improving the UK's infrastructure."

 

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