HC Deb 19 May 1975 vol 892 cc997-8
15. Mr. Moonman

asked the Secretary of State for Industry if he will make a statement on the European Parliament's report on the IBM company's domination in Europe, so far as his policy towards its recommendations are concerned.

Mr. Benn

I take it that the Question relates to the recent report on data pro cessing prepared for the Economic and Social Committee of the EEC. That report makes recommendations for Community action, and it is for the European Commission to decide whether to put forward proposals to the Council of Ministers based on those recommendations.

Mr. Moonman

I am sure my right hon. Friend will be aware that for two years the committee has been vetting sharp practices by IBM in relating one company's production to another. Does he agree that a couple of things we could possibly do would be to approach ICL to see whether we could develop a proper computer strategy within Europe, whatever happens on 5th June, and to have a Green Paper setting out our thinking on the whole area of the electronics industry?

Mr. Benn

As to a study of the electronics industry, that is something that has concerned the Government. Due to the active and strong support which my hon. Friend has endorsed over the years for ICL, only 38 per cent. of the United Kingdom market is held by IBM whereas in the EEC as a whole it has 60 per cent. ICL's competitive performance in the United Kingdom is much stronger than in Europe; it has 32 per cent. of the market compared with IBM's 38 per cent. That is a satisfactory performance by ICL. I should be reluctant for political reasons to drive ICL into any arrangements which did not appear to make commercial sense to it. As my hon. Friend says, these international corporations can survive in or out of the Community.

Mr. Warren

Will the right hon. Gentleman tell us of Her Majesty's Government's attitude to the recently-announced formation of the Minneapolis Honeywell-Bull and CII Company in France, which puts United States-dominated companies in first and second places in the British and European computer industries?

Mr. Benn

I thought that this question might arise. I am told that the Honeywell-Bull arrangements in France will not affect the United Kingdom, but clearly there is a powerful American domination in computers which makes it all the more sensible that we should continue with the policy adopted by both successive Governments of supporting ICL, which has made it as good a company as it now is.