Brian Sweeney of Liverpool asked "What advice would the panel give to successful small business owners who want to get into politics?"

John Walker, Policy Chairman

Said that the FSB was politically impartial and that the organisation focused on issues rather than parties.

Sir Robert Smith, MP, Liberal Democrat Party

Encouraged everyone to get involved otherwise what happens to you is decided by others. He also stressed it was important to trust your instincts and to vote Liberal Democrat if that felt right to you.

Derek Brownlee MSP, Scottish Conservative Party

Regretted that he was not as well off as some of his contemporaries in the commercial world. He said you had to think carefully before becoming too engaged and said that whatever your views you must be involved at some level. He added that it was important to reduce the burden for small businesses and that all parties must be signed up to the small business agenda.

Jim Mather MSP, Sottish National Party

Would encourage more businesses people to go into politics and said that their experience would be welcome.

Anne Begg MP, Labour Party

Said small business people should put their money where their mouths were and that if you felt you were not represented it was important to become involved. It is important to have politicians with closer links to ‘real life'.

Responding to the answers, Brian Sweeney said that politicians could really benefit from the common sense of small business owners.

Sue Terpilowski asked "With the impending BA strike, do the panel think consumer impatience is running high that there should be a ban on all strikes?"

An audience vote was taken and overwhelmingly not in favour of a ban on all strikes.

Anne Begg MP, Labour Party

Anne's sympathy is not with the management, however, it is an industrial dispute and all parties need to sit round the table.  Her plea is for BA not to  cancel flights as soon as there is bad weather. Relations with trade unions and Labour is nothing new - and Anne has personally been on strike on education  matters. Trade Unions should be independent from government but employees should have the right to strike.

Derek Brownlee MSP, Scottish Conservative Party

Derek felt that BA does not have the given right to exist - have seen other carriers go to the wall -and so Trade Unions need to think about the long term future of BA.

Sir Robert Smith, MP, Liberal Democrat Party

Sir Robert said that we rely on BA - but they should remember that Aberdeen is a long way from London and this needs to be understood. His own view is that the country and economy is under threat and that the cabin crew need to make compromises to realise that.

Jim feels that we need to ask bigger businesses like BA to work much more closely in terms of relations with their staff. Small businesses have this "family" view towards its members.

John Walker, Policy Chairman 

John Walker felt that small businesses are being adversely affected - small businesses cannot go on strike. He called on BA and Trade Unions to sort this out  as quickly as possible.

The audience were more in favour of the management side. 

Bruce Undy asked "How does the panel this we should go about cutting gout huge deficit?" and Malcolm Turret queried "If current financial situation is similar to Greece – about to be bailed out by the IMF – where does that leave the UK with the different competing political policies?"

Jim Mather MSP, Sottish National Party
Jim Mather suggested that Scotland was in difficulty because it needed more control of its own budget. Because Scotlands growth had trailed behind the UK and Ireland for years. 

John Walker, Policy Chairman
John Walker challenged politicians to commit to reversing any tax rises that were introduced as a result of the economic crisis when the economy had recovered. 

Anne Begg MP, Labour Party
Anne Begg commented on the strength of the UKs position, with low levels of debt as a percentage of GDP. She maintained that the economy is currently to weak to cut public sector spending immediately. 

Derek Brownlee MSP, Scottish Conservative Party
Derek Brownlee argued that the economy needed the debt to be tackled as quickly as possible. Cutting benefits for higher earners and ensuring there are no sacred cows in the public sector. 

Sir Robert Smith MSP, Liberal Democrat Party
Robert Smith countered that the both the conservative and labour parties were missing what was really needed. The current government is lacking a long term vision, but the Tories are going to cut too much too soon. To stop panic in the markets there needs to be a well thought out long term plan for cutting the deficit. 

Neither Bruce Undy or Malcolm were impressed with these answers. The panel were challenged to say what they would do for small businesses in the UK. 

In Scotland the SNP has cut small business rates. 

Anne Begg MP, Labour Party
Anne pointed to the Governments VAT cut, and support for further employment in small businesses. 

Derek Brownlee MSP, Scottish Conservative Party
The conservative party according to Derek would rather over deliver than over promise, but they are looking at ways to cut taxes by simplifying the tax system. 

Sir Robert Smith MSP, Liberal Democrat Party
Robert Smith committed to recognising the National Insurance burden and making serious attempts to push this back.
In response John Walker pointed out the difficulty the government created in becoming and employer, holding back employment by taxing it heavily and outing in place regulation. The hit on fuel duty that affects small businesses, and cynicism about environmental taxes that exists in small businesses. The government needs to cut unnecessary expenditure at all levels.  

Mary Boughton asked "If every small business spends 7 hours a week on regulation and red tape - how would members of the panel spend there extra day?"

Anne Begg MP, Labour Party

Anne would spend longer sleeping or getting to the bottom of her inbox - and would avoid Twitter

Jim spends two hours every week with a regulatory review group - would spend more time in England promoting the benefits of Scotland - and pick up good ideas.

John Sergeant

John would spend time relaxing, going to a pop concert and not answering emails.

Derek said his wife would have lots of jobs for him to do including the painting of the house. 

Sir Robert Smith MSP, Liberal Democrat Party

Sir Robert would interesting want to use his time finding was to cut red tape, and would also like to spend time within his rural community undertaking hill walking.

Antonio Falco raised the question "The bank bailout has been very expensive and bankers are still being paid bonuses.  Do we really think that bankers need to pay these bonuses in order to keep staff?".  Whilst Nicky Raymond asked "What terms were given to banks for repaying loans?" and Mike Cherry queried "How can more competition be introduced?" Whilst Brian Sweeney asked "What has actually changed since the banking crisis started?"

Sir Robert Smith MSP, Liberal Democrat Party
Sir Robert Smith:  The way the banks were allowed to spiral out of control was a disaster.  The problem is that we still need them.  The bailout was necessary, but the terms and conditions were wrong.  The banks were operating with a massive safety net, they knew that they would not be allowed to fail completely, so they took risks knowing that they would be rescued by the tax payer.

We now need more competition and to break up the banks, separating high street banking and the much riskier investment banking. 

This would also be the right time to take forward the Post Bank concept.

Derek Brownlee MSP, Scottish Conservative Party

Derek Bramley:    We need to differentiate between the banks that were bailed out and the ones that were not.  For those bailed out using tax payers' money there should be no bonuses.

We need a more sophisticated regulator for banks which include corporate governance as well.  Bonus should be based on long-term achievements and the growth  of investments over time, rather than the current short-term approach. 

Banks have been given a mixed message, they need to restore lending while at the same time reduce costs.  This means that many stable and viable businesses have had to suffer, as lending criteria across the board is tighter and loans are more expensive to come by. 

If small businesses fail they don't get bailed out, whereas banks do. 
Bank lending is a core issue for small businesses, and the current problems are obstructing economic recovery.   Small businesses deserve and demand a fairer treatment.

The banking crisis was cause d by regulatory failure across the banking world, particularly in London and New York.  There was over-trading, over-exposure, and a game that was bound to come to an end.  At the same time, the Government became addicted to the tax revenues they were getting from the bankers' bonuses. 

We should now look at new beginnings.  Bankers should be rewarded for doing a good job and to be able to hold their head up high.

Banks need to be taxed, but that is only part of the solution.  We need to look at the whole system and how it fits together. 

I agree with previous speakers that further competition is needed.

We are also looking at a Tobin tax (the so called Robin Hood tax) on all transactions to take some of the sting out of the public's anger.  

Will bankers who don't get bonuses leave?  No, because the mood is the same everywhere. 

What has changed?  Not enough.  And it is still very difficult for businesses to get loans.

It is interesting to see that the FSB is asking for further regulation of the banks, as normally the FSB campaigns against regulation.