23. Mr. Hordenasked the Minister of Technology whether he will discuss with the National Research Development Council alternative methods of rewarding successful inventors.
§ Dr. BrayWhile my right hon. Friend is not responsible for the day-to-day actions of the National Research Development Corporation, I understand that N.R.D.C. has no one set of terms with private inventors but seeks to negotiate terms with the inventor to suit the particular case.
Mr. HordenIs it not, however, the case that inventors in this country are treated less favourably for tax purposes than inventors in other countries? Would the hon. Gentleman, therefore, make representations to his right hon. Friend the Chancellor of the Exchequer to see whether some improvement cannot be made in this position?
§ Dr. BrayTax questions are, of course, a matter for the Chancellor and not for the Ministry of Technology, but some recent statements in the Press have not correctly represented the position. For example, the sale of shares in a company set up in 1959, on which Sir Christopher Cockerell wrote, would be hardly liable to tax, if at all.
§ 24. Mr. Hordernasked the Minister of Technology what steps he intends to take to improve the financial rewards for British inventors.
§ Dr. BrayThe first necessity is to see that worthwhile inventions are fully and effectively exploited by industry, without which the possibility of reward cannot arise, and much of the work of the Ministry of Technology is directed to this end.
What reward the inventor will get is a matter for negotiation in the light of the prospects for the eventual success of his invention and costs involved. There are advisory services available to inventors, for instance that offered by the Institute of Patentees and Inventors to its members; but I am naturally willing to consider proposals to help to see that the inventor gains a fair reward.
§ Mr. HordernWould the hon. Gentleman and his Ministry consider this proposal, that the bar on development of many inventions—namely, the close company legislation—should be altered so that proper development of inventions can be proceeded with and not penalised as at present?
§ Dr. BrayThat suggestion affects many things other than inventions and is really a matter for the Chancellor.
§ Sir H. Legge-BourkeWould the hon. Gentleman recall that until 1945 capital sums involved in patents were not subject to tax? Bearing in mind the considerable emphasis which his right hon. Friend himself seeks to give to innovation and improving the balance of payments, particularly on patents and licensing, is there not a strong case for him and his right hon. Friend to insist to the Chancellor that something be done?
§ Dr. BrayQuestions of taxation on all matters are best addressed to the Chancellor. Our concern in the Ministry is to ensure, as I said in my first reply, that the invention is applied, and effectively applied, and that inventors are given every encouragement by industry.
§ Mr. RankinWould these rewards cover supersonic research?
§ Mr. HordernI beg to give notice that, in view of the unsatisfactory nature of that Reply, I shall raise the matter on the Adjournment.