HC Deb 28 April 1980 vol 983 cc945-7
1. Mr. Gwilym Roberts

asked the Secretary of State for Industry when he intends to make a further statement on Inmos.

9. Mr. William Hamilton

asked the Secretary of State for Industry if he will make a statement on the future of Inmos.

The Secretary of State for Industry (Sir Keith Joseph)

I have nothing to add to my reply on 24 March to the hon. Member for Newton (Mr. Evans).

Mr. Roberts

Does the right hon. Gentleman agree that this project is uncertain, to say the least? Does he accept that the real problem is that British industry, generally, is miles behind many of our industrial competitors in the application of chips and chip technology, and that the real need is to concentrate on and plough money into the application area rather than into the production of chips, where we cannot compete?

Sir K. Joseph

I agree with some of the implications of the hon. Gentleman's supplementary question, but I am not sure what conclusion should be drawn in this case.

Mr. Hamilton

Will the right hon. Gentleman explain the inordinate delay in coming to a decision, one way or the other, from the beginning of this year until now? Is the reason that the Prime Minister resists the proposition that the Government should intervene further in the matter? In view of the enormous intervention by the Japanese Government and the United States Government, does not the right hon. Gentleman think that it is important to come to a decision soon?

Sir K. Joseph

I agree with the hon. Gentleman that it is important that a decision by the Government's resolving the issue should be reached as soon as possible, but the issues are very complicated, and have become more so.

Mr. Archie Hamilton

Is my right hon. Friend aware that there was some question of GEC buying this company and thereby relieving the taxpayer of any further injections of funds? Can my right hon. Friend report to the House on that matter?

Sir K. Joseph

It has been announced in the press that GEC is interested in some possibility of a connection with this company, but the negotations are obviously confidential.

Mr. Gordon Wilson

Will the Secretary of State say how much State money has been invested in this project? What has happened to the offers to the development areas with high unemployment that were supposed to be benefiting from it?

Sir K. Joseph

The question is really for the National Enterprise Board. I believe that about £25 million has either been invested or committed.

Mr. Les Huckfield

Does the Secretary of State believe that we should have a manufacturing capacity in silicon chip technology, or does he believe that we should import it?

Sir K. Joseph

The decision is for those who want to manufacture silicon chips in this country. There is taxpayers' money available, under widely understood schemes, of which they can avail themselves if they come within the criteria, but the decision is essentially for them.

Mr. Budgen

Does my right hon. Friend agree that if a further £25 million is given to this project he will be taking a view about whether there should be various forms of silicon chip marketing and production in this country? He will be going into the market place and ceasing to be a politican.

Sir K. Joseph

My hon. Friend is, as usual, right or nearly right. But an inheritance is involved. There is the National Enterprise Board, which the Government have continued with the purpose of making judgments on a limited but important range of business decisions. It has recommended that a second tranche of this initiative, started by our predecessors, should be given.

Mr. Speaker

I remind the House that the eight open questions on the Order Paper today were tabled before I made my statement last week, so I will call them.

Back to