HC Deb 10 May 1960 vol 623 cc198-9
29. Mr. Jay

asked the President of the Board of Trade how much has been spent by British industry on research and advertising, respectively, in recent years.

Mr. J. Rodgers

British industry is estimated to have spent around £300 million on scientific research and development in 1958. I know of no complete estimates of expenditure on market research. According to the Advertising Association, total expenditure in this country by all kinds of business in this country on advertising was £364 million in 1958 and £395 million in 1959.

Mr. Jay

Does the Parliamentary Secretary think that it is very creditable to British industry that more money is being spent on advertising than on research, according to his own figures? As he apparently accepts responsibility, since he has answered the Question, can he say whether the Government have any proposals for redressing this balance?

Mr. Rodgers

There is obviously no ideal ratio between expenditure on industrial research and on advertising. The ratio must vary between particular firms and particular industries. However, whereas nearly the whole of the £300 million spent on research and development is spent by the manufacturing industries, the Advertising Association in the latest year for which figures are available, which I think is 1956, estimates that only 60 per cent. of the advertising expenditure is by manufacturing industries.

Mr. Lee

Will the hon. Gentleman agree that about two-thirds of the £300 million spent in private industry is found by the Government and is public money?

Mr. Rodgers

No, I do not agree. It is estimated by D.S.I.R. that less than one-half of expenditure on scientific research and development in 1958 was spent on Government contracts.