§ 26. Mrs. Castleasked the President of the Board of Trade why he has granted an open import licence to International Computers and Tabulators to import the Remington Rand process data tabulator, Univac 1004, from the United States, thus worsening the balance of payments and increasing unemployment in this country.
§ Mr. ErrollIn accordance with general policy applying virtually to all goods, imports of data processing equipment from the United States are on Open General Licence. No specific approval from the Board of Trade was therefore required for the import to which the hon. Member refers.
§ Mrs. CastleIs the right hon. Gentleman aware that this decision of I.C.T. to import these computers from America means the closing of a number of its factories in this country, including one in Southport employing 800 men and another in Northern Ireland, in both of which areas unemployment is exceedingly high? Is he not also aware that the Trades Council of Southport has appealed to him that, instead of granting this open general import licence, he should grant a limited licence for the import of a number of prototypes, so that production can take place under licence in this country and thus give employment not only in Southport but in the radio and electronics industry for making the components and transistors to go into these machines? Could not he amend the open general import licence along those lines?
§ Mr. ErrollI think that this is a case in which long-term policy produces an unfortunate short-term effect. Were the import of these machines to be banned, I do not think that it would be for the future health of this company in this country. The real problem is that the demand for punch card equipment has been affected by the rapid extension of the use of computers. The company considers that until it has devised electronic machines of its own to cover the whole field, the only practical way of increasing its share of a changing and expanding market is to supply machines which other firms have developed and thus hold its own.
§ Mr. Peter EmeryDoes my right hon. Friend realise that the Ampex Corporation in Reading, which produces nearly all the brain or memory units for every computer made in the country, is trying to do everything in its power to increase its output to meet the large British and world demand? Does he realise that it is doing a vast export business and that it is trying to get his co-operation for expansion both in Reading and elsewhere? Will he assure me that he will give this co-operation?
§ Mr. ErrollI am glad to give the assurance that I will provide this cooperation. The firm has been most cooperative in understanding our approach to expansion in development districts, and I hope that this co-operation between the firm and my Department will continue.
§ Mrs. CastleIs the right hon. Gentleman aware that this is just another example of a firm in this country pretending to start production, and then, because it totally fails to keep pace with chandising products from America? Why cannot we develop this kind of advanced computer in this country? Why should this firm be encouraged in its slothfulness by being allowed an open general licence which will amount to a huge dollar bill of probably £3 million a year, which will adversely affect our balance of payments position? Will the right hon. Gentleman look at this again?
§ Mr. ErrollI certainly will not, because I think that it is in the best interests of this country that we should encourage American investment here, because overseas investment in Britain has made a tremendous contribution in our leading growth industries. It a particular firm has an occasional setback, such as this firm is experiencing, we should give it an opportunity of re-establishing itself in accordance with its own best commercial judgment.
§ Mrs. CastleOn a point of order. In view of the unsatisfactory nature of that reply, I beg to give notice that I will raise the matter on the Adjournment.