§ 30. Mr. Lubbockasked the Minister of Technology what discussions have been held between the Industrial Reorganisation Corporation and software companies; and if he will now state his policy on the takeover of software houses by American companies.
§ Dr. BrayThe Ministry of Technology and the Industrial Reorganisation Corporation have had exploratory discussions with some of the software companies. My right hon. Friend wishes to see strong British controlled software houses continuing to play a major part in the expansion of this important industry. While recognising the benefits of the techniques and management brought by American-owned companies, and the benefits of links with Europe, the government believes these can be secured along with the development of companies wholly or partially owned in Britain.
§ Mr. LubbockHas the hon. Gentleman asked the Industrial Reorganisation Corporation to see whether there can be integration of the software companies into larger groupings, and would he consider as one possible means of supporting the British-owned software houses the placing of contracts with them by Government Departments?
§ Dr. BrayIn the first place, it is a matter for individual software houses to put forward proposals. If there are viable proposals to form a group of software houses, that may well give them additional strength. However, the principal assets of this industry are the brains of the people working in it and not physical assets. Therefore, there is not an inherent rationalisation case in the conventional sense.
As for Government contracts, certainly it would be an advantage to the Government to keep in touch with advanced software developments in the private sphere, and this can be realised by placing contracts in the private sector for major data processing. This is primarily for the user Department and, overall, the Civil Service Department, rather than my Ministry.
§ Mr. HastingsWas the contract for computing freight at London Airport genuinely put out to all possible tenderers in the private sector?
§ Dr. BrayI think that the hon. Gentleman is referring to a sub-contract for software on a main contract which has not yet been awarded. It is, therefore, not possible to make a statement at this time.
§ Sir H. Legge-BourkeCan the hon. Gentleman say what is the Government's policy over the payment for premium dollars involved in take-overs of this kind?