The importance of the Department of Trade and Industry (DTI) in representing businesses must not be overlooked, it has been claimed.

In response to the Opposition Day Debate on the effectiveness of the DTI, the British Chambers of Commerce (BCC) said businesses wanted to see the government branch ‘reformed in order to make it more effective’.

“It is crucial that representation of the business community is not fragmented and divided across Whitehall,” said Sally Low, BCC director of policy and external affairs.

Low said firms saw the main objectives of the DTI as championing business interests within Whitehall and balancing employment rights and businesses’ interests.

“If the DTI is abolished or split up then it is hard to see how any department will be able to deliver any of these objectives,” she continued.

“It is clear that there is wide support for reforming the DTI, but that does not mean a department representing the views of business should not exist.”

Speculation on the future of the DTI has led to heated debate in the past. Earlier this year manufacturers’ organisation the EEF insisted that the current system was not sustainable as there is often an ‘overlap’ between the DTI and the Treasury.

EEF director general, Martin Temple, said there was a ‘persuasive case to put in place a single government department within a modern Whitehall structure with the responsibility of promoting economic competitiveness’.

The EEF said that the four core functions of the DTI – trade promotion, fair markets, business support, and science and innovation – would be more effective if grouped together.

© Crimson Business Ltd. 2007