SMALL Business minister Nigel Griffiths has blamed Brussels for much of the red tape tying up local firms.

He was speaking during a visit to Kent and Medway, where he spent nearly two hours with award-winning hearing aid manufacturer Puretone on Medway City Estate.

He said the UK's successful economy strengthened his hand when he complained about European directives. He was going to Brussels this week to tell ministers what he thought about them, especially the agency directive that gives temps the same rights as permanent employees.

"We are in a pretty good position to lecture and advise our friends and colleagues in Europe," he said. "We ain't taking too many lessons from them."

He accepted that small firms struggled under the burden of form-filling, but claimed that employment laws affecting minimum wages and job security benefited many people.

He admitted that previous ministers had not been very successful at keeping their promise to slash red tape. Would he make a difference? "I prefer to act on red tape rather than talk tough because the history of politicians making boasts about it is not a good one."

He denied that the imminent hike in National Insurance contributions was unnecessary. On the contrary, the extra revenue (one per cent each from taxpayers and employers) would benefit small firms by going into the National Health Service and "cut waiting lists”.

"The employer will benefit from not having an employee off for such a long time, dragging down their productivity. Nobody likes tax rises but it is, I think, probably the fairest way to raise money for the NHS."

Mr Griffiths said that while fewer entrepreneurs and women started businesses in the UK compared to the USA, some 1.7 million enterprises had started up in the past five year, creating 1.5m jobs.

The Government had changed the bankruptcy laws to remove the stigma of failure, and was urging successful entrepreneurs to go into schools to encourage youngsters to think more about business as a career.

During his visit, Mr Griffiths attended a presentation ceremony of SMART awards to firms with innovative ideas. It was held at the conference centre in Horticulture Research International, East Malling.