12/08/2004

CBI concerned at loss of 'business voice'

CBI Director-General Digby Jones has said that business would "examine with interest" the proposals put forward by the Conservative party for reforming the Department of Trade and Industry (DTI).

He said: "All political parties should be clear that firms need an effective champion at the heart of government. It would be disastrous if the business voice were to get lost in party politics.

Mr Jones added: "It is also important that those who make the rules have first hand knowledge of the environment in which businesses operate.

"The DTI must have the resources it needs to do the job. There is a world of difference between streamlining a department and cutting it to the bone to the point of emasculation.

"Firms are right behind the drive for greater government efficiency. We were encouraged by the way the DTI sought to reform itself in the run up to the spending review.

"It is encouraging to see the Conservatives propose a department for business. After all, without successful business there is no wealth creation from which to pay taxes to build schools and hospitals."

Yesterday, opposition parties proposed the virtual end of the line for the DTI in its current form, after the Tories pledged to sacrifice 80% of the Department's workforce in a bid to reduce Whitehall bureaucracy, and the Lib Dems reiterated plans to simply abolish it altogether.

Tory Shadow Chancellor Oliver Letwin said the plans would aim to "cut the department down to size" by removing 4,000 of the 5,000 jobs at the department's headquarters.

Claiming that the DTI was costing the British taxpayer some £750 million-a-year, he said that the department was "all too typical of the bloated bureaucracy Labour has created" which instead of helping business was "stifling free enterprise".

(SP)

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