MP IN TALKS WITH TOP SOLIHULL BUSINESS BOSSES

11.27.09am GMT Tue 3rd Mar 2009

Solihull's MP. Lorely Burt has spoken to business bosses amongst the top 20 employers in Solihull to find out what help and support they need from government to help weather the recession.

Mrs Burt, who speaks for the Liberal Democrats on small business, said:

"The picture in Solihull is varied according to the level of the downturn and the financial resilience of the company involved.

"It's not all gloom and doom out there. Some companies are holding up very well, but certain sectors, like construction and motor manufacturing and its suppliers, are experiencing particularly difficult times.

"However, people can't buy houses or cars unless they can get access to finance, and I have been lobbying government hard to exert more influence to get banks lending again.

"If they won't, despite billions of taxpayers' money being poured into some, those who have received taxpayers' help should be nationalised."

Mrs Burt also said that she was very concerned to hear of the withdrawal or reduction of trade credit insurance suffered by companies in the borough.

"Withdrawal of trade credit insurance can spell the death knell for a company as other companies will be wary of trading with it. Woolworths was a prime example, folding in weeks after its trade credit insurance was withdrawn," said Lorely.

"I am lobbying hard to get the government to stop these insurance companies being 'fair weather friends' - only offering their customers an umbrella when the sun shines."

Mrs Burt said she would introduce an Early Day Motion in Westminster calling for a moratorium on the introduction of new government regulation due in April.

"Companies have to concentrate on fighting the day-to-day challenge of surviving the recession, not how to comply with yet more regulation," she added.

"Companies are already doing much more monitoring on their business and cash-flow at the moment: examining these weekly and even daily, whereas they might have done it monthly or quarterly before the recession. The last thing they want to do now is get to grips with even more red tape.

"I have found the opportunity to talk to big employers in Solihull really useful and will do my best to ensure their voice is heard by government in Westminster."