A LEADING Scottish Tory has called for a radical policy to combat the scourge of illegal businesses.
Arthur Bell, chairman of the Scottish Tory Reform group and director of the Small Business Bureau, says he wants an amnesty of at least six months for ``black economy'' businesses.
Mr Bell says the move would wipe tens of thousands of names off the dole register, and create jobs.
Under the plan, those who run businesses which are not registered would be able to declare themselves as a legitimate company without fear of prosecution.
The move would be similar to the recent gun amnesty announced by the Government.
It is understood the plan has already had a favourable response from Ministers and, if implemented, it would represent a major policy shift by the Government.
The present policy is to prosecute those running unregistered businesses, and employees who are continuing to sign on for unemployment benefit.
Details of the proposal will be published in next month's edition of Small Business News, a trade magazine which circulates to more than 20,000 small firms, enterprise companies, and Government Ministers.
Mr Bell said: ``This would give the people who run undeclared business the chance to go straight, declare their earnings, register employees and start paying taxes.
``There are thousands of them up and down the country which are doing nicely because of all the advantages they have.
``If they are not currently the subject of Inland Revenue or DSS enquiries, they could be asked to visit their local Business Shop and arrange to have training in all the necessities of running a legitimate business.
``They obviously already understand the market. What they need is training on banking and accounting, wages and taxes, and on building their businesses for profit.''
It is understood the idea will be the subject of careful scrutiny by Ministers and Tory policy-makers.
Mr Bell added: ``Within six months, you would see tens of thousands coming off the dole, and a similar number becoming potential employers and taxpayers.
``The benefit to the economy would be considerable, and the cost to the Government would be minuscule.''
Mr Bell, known to be an adviser on key policy issues to Scottish Secretary Michael Forsyth, claims the black economy is thriving in inner-city areas and outlying housing schemes, areas which are often the most deprived.
He says that when sprawling schemes were planned, no provision was given to providing work places.
He said: ``There is a hidden economy tucked away out of sight in these schemes.
``If you want your garden dug, the windows washed or whatever, you can always find someone, usually unemployed, who is engaged in this micro-economic activity. It is time to be bold and radical.''
Mr Bell added: ``I have bounced the idea off the department of Trade and Industry already. They said they want to know more.''
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