An enlarged European Union won't achieve its lofty goals if the voice of small business goes unheeded warns PETER PYBUS, rural spokesman for the Yorkshire and Humber policy unit of the Federation of Small Businesses (FSB), chairman of the FSB Yorkshire Dales branch and FSB national councillor.

THIS Thursday's Euro elections and renewed Government promises of a referendum have placed European issues - and their effect on York and North and East Yorkshire businesses - firmly back on the domestic agenda.

Businesses here, as elsewhere, have been increasingly affected by Europe since before the launch of the Single European Market 12 years ago, but the growth of the EU and its regulatory influence means that the whole issue is now becoming more pertinent to decisions made on British soil.

The FSB, which represents the interests of 12,500 member businesses in Yorkshire and the Humber, including many in Greater York, has produced its own Euro Manifesto, which has been presented to the region's candidates for the Euro elections.

In essence, the FSB believes that the EU enlargement could result in significant long-term gains for small businesses in our region through new trading opportunities, and also through access to a bigger workforce.

The latter looks set to be the biggest immediate benefit. FSB research published this spring revealed that small businesses, particularly those in construction, manufacturing, health, mining, transport and the hotel and restaurant sectors, struggle to find staff with relevant skills.

However, the increased export market will have a delayed impact because very few small businesses have high levels of export sales.

In spite of this, many small businesses do have some customers within the EU.

Export training is among the most popular forms of training undertaken by small businesses - suggesting that exploiting EU markets is a real ambition, even if it is not a current reality.

In the Lisbon Goals agreed four years ago, member states were set the worthy challenge of becoming the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth, more and better jobs and greater social cohesion within ten years.

But the FSB view is that this will not be achieved unless all EU institutions make sweeping changes.

A central theme of our Euro Manifesto is that that now EU leaders have recognised that small businesses are the backbone of the EU economy, they need to translate this into firm action with major changes to the regulatory regime. Among measures called for in our in the manifesto are:

A strong and vigorous European Parliament to keep regulations in check,

The use of sunset and review clauses in new legislation so it can be automatically repealed if it becomes irrelevant or outdated,

Greater small business representation in the social dialogue process - at present consultation on employment and social laws is dominated by trade unions and big business with the voice of small businesses often going unheard,

Further use of extended impact assessments,

Extension to small firms of the protection available to individuals under the Unfair Commercial Practices Directive - this would help combat the onerous trading conditions often imposed on small firms by larger businesses

Better access to government contracts for small businesses.

If these measures can be implemented, the FSB believes that it will go a long way towards opening up the EU trading market to small businesses in York and elsewhere, and improve peoples' lives at a grass-roots level.

Updated: 09:49 Tuesday, June 08, 2004