Peter Hain

Peter Hain has rejected Conservative claims that bureaucracy is damaging Wales, insisting that the country is "booming".

In exchanges in the Commons, Tory MP Henry Bellingham warned that red tape is holding back small businesses.

Responding, the Wales secretary said there was a problem but insisted the government was taking steps to deal with it.

"The economy was on its back 10 years ago," Hain said, "but small businesses are booming in Wales, with small business creation at the fourth highest level in the UK".

Shadow Wales secretary Bill Wiggin quoted figures indicating that excessive amounts of time are being wasted by small businesses on government form filling.

There had also been a decrease in self-employment and increases in bankruptcy, he warned.

But Labour backbencher Kevin Brennan told MPs that small businesses were glad of government support.

He warned that Conservative plans to slash £500 million from the Department for Trade and Industry budget would be of no help to small businesses.

Hain agreed, and added that Liberal Democrat proposals for the complete abolition of the DTI would be a backwards step.

And he said that "the choice for the country and the choice for Wales is whether they go back to the risks of the Conservative government".

No bank holiday

For the Liberal Democrats, Simon Hughes suggested that Wales could do better if the government agreed to make March 1, St David's Day, a bank holiday.

Minister Don Touhig told the House there was no lack of pride in Wales but no plans to change the bank holiday system.

He said another bank holiday in the UK would cost £2 billion, but he did concede that if there was a full consultation involving businesses, councils and other stakeholders then it would be looked at by government.

In a later session of prime ministers questions, Tony Blair also indicated his opposition to a St David's Day holiday in Wales.

"Before we could do such a thing we would have to have a very extensive consultation, not least with businesses," said the prime minister.