HC Deb 27 April 1970 vol 800 cc856-8
12. Mr. Blaker

asked the Minister of Technology why the official scheme for encouraging manufacturers to buy numerically controlled machine tools is to end.

Dr. Ernest A. Davies

It has been decided with the concurrence of the N.R.D.C. to end the scheme, primarily because industry has made little use of it during the four years—and particularly in the last twelve months—that it has been operating.

Mr. Blaker

Can the Minister say how many machine tools were bought under this scheme in the four years that it was in operation? Is it true that the figure was only about 20? To what does the Minister attribute this disappointing result?

Dr. Davies

Without prior notice, I cannot give detailed figures of the ordering over a period of four years. One of the reasons why the scheme has now fallen into disuse is that normal commercial channels have taken over, and that numerically controlled tools are being increasingly purchased in the normal way.

29. Mr. J. H. Osborn

asked the Minister of Technology what was the value of deliveries and sales of numerically controlled machine tools in each quarter of 1969 and in total; how these figures compare with 1968; and what trends the figures for the first quarter of 1970 indicate.

Dr. Ernest A. Davies

Quarterly values of the deliveries of numerically controlled machine tools are available to the third quarter of 1969 and, with permission, I will circulate a detailed table in the OFFICIAL REPORT. Deliveries in the first three quarters of 1969 are 20 per cent. up on the corresponding period in 1968. No figures for the first quarter of 1970 are yet available.

Mr. Osborn

Is it not a fact that there has been a fall of 17 per cent. in new orders for use in home markets? Has not this occurred because of pressure on profits as a result of deliberate Government policy and difficulties caused by the long time-scale involved in introducing numerically controlled machine tools, this at a time of immense credit squeeze and financial difficulty?

Dr. Davies

I could not go the whole way with the hon. Gentleman's observations, but certainly there has been some change in the level of ordering. It is well known that machine tool ordering has a cyclical element. However, if one tries to put the matter in its proper perspective and considers the longer-term trends, one sees that the numerically controlled population, as it were, is growing at the rate of between 30 per cent. and 40 per cent. per annum, which is a very satisfactory rate of growth.

Following is the table:

UNITED KINGDOM DELIVERIES OF

NUMERICIALLY CONTROLLED MACHINE TOOLS

1968 1969
£m. £m.
1st quarter 3.3 3.0
2nd quarter 2.0 4.0
3rd quarter 3.0 3.0
4th quarter 3.6 Not yet available
Total 11.9