Ministers to size up issues facing SMEs

Date: 17/04/1997

EU ENVIRONMENT ministers will be asked to 'think small' when they meet this weekend in Amsterdam for an informal get-together.

With small and medium-sized enterprises (SMEs) so central to the formulation of EU policy - not least as motors of employment growth - Dutch Environment Minister Margreeth de Boer will call on her colleagues to consider how to balance their needs with the demands of environmental regulation.

“Environmental problems are often caused by SMEs, and laws which work for big companies do not always work for smaller ones. We want to look at how to address this question to protect the environment more effectively,” said a Dutch official.

Although representatives of the small business sector agree that 'green laws' are planned with large-scale industry in mind, they dispute the basic premise that they are avoiding the strictures imposed on their bigger counterparts. “The strategy is interesting, but does contain proposals which would be detrimental to SMEs. Ministers' attitudes should not be to penalise us, but to think small and take measures to boost our competitiveness,” said Garry Parker of the SMEs' lobby UEAPME.

Dutch officials acknowledge the particular sensitivity of the small business sector, but insist this should not exempt it from the terms of environmental legislation.

“With SMEs often delivering their products to big firms, it might help if these placed environmental responsibilities on their small business suppliers,” added one.

But UEAPME stresses that SMEs can only flourish if they have the lightest possible administrative burden placed upon them. “This entails an increased use of voluntary instruments and incentives whenever SMEs are concerned, and a drastic reduction of red tape at European and national level,” it argues in a memorandum sent to all 15 environment ministers ahead of their meeting, which begins tomorrow (18 April).

Ministers are also urged to use the carrot in equal measure with the stick by offering fiscal and financial incentives to those who comply with green regulations.

In addition, small businesses are calling for much greater research on the impact of new environmental policies before they are adopted.

The Hague believes environmental policy in the SME sector must be simple, recognisable and affordable if it is to succeed. It suggests a range of measures which could be taken at an EU level to make life easier for SMEs and enhance environmental protection. These include subsidies for the establishment of environmental management systems for SMEs, the promotion of green purchasing policies among public authorities to strengthen demand for environmentally-friendly services, and eco-labels as a marketing instrument for small firms.