§ 3. Mr. Rentonasked the Secretary of State for Industry when he proposes to announce his decision regarding further investment of public money in Inmos.
§ 6. Mr. Viggersasked the Secretary of State for Industry if he will make a statement on the future of the Inmos project.
§ 12. Mr. Douglasasked the Secretary of State for Industry if he will make a statement on the future of the Inmos project.
§ Sir Keith JosephI am conscious of public concern on this matter. It presents complex and difficult considerations. Proposals are being considered by the parties concerned, but they are commercially confidential and there is nothing I can say about them at present. I will make a full statement as soon as possible.
§ Mr. RentonWhile, obviously, my right hon. Friend wishes to reach the right decision on this complex and important matter, does he not think that his apparent indecision is causing damage to Inmos, its employees and the British microelectronics industry as a whole? Will he speed up his statement, and when he makes it will it contain a definitive view on whether there is a viable future for such a small manufacturer as Inmos?
§ Sir K. JosephMy hon. Friend will, surely, recognise that since the beginnings of commercial negotiations are in hand it would be wrong to abort them when they are being considered by the NEB.
§ Mr. ViggersWhile the ability of those involved with the Inmos project is undoubtedly exceptional, is it not an extraordinary commentary on Socialism in action that the previous Socialist Administration should have set up a share incentive scheme that will provide £6 million for each of the three main participants—two of whom are Americans—if the project is successful?
§ Sir K. JosephWithout confirming or contradicting the figure used by my hon. Friend I can say that when the Conservative Party was in opposition I thought it rather admirable—and I still do—of the Ministers concerned to recognise the value and effectiveness of private entrepreneurial motives. Whatever one may think about the application in this case, the acceptance of the principle was not to be condemned.
§ Mr. DouglasNotwithstanding his strictures on confidentiality, does the Secretary of State concede, that it is vital that he clarifies this matter as soon as possible and gives a clear indication that this is the type of project to which he would give assistance through the National Enterprise Board?
§ Sir K. JosephYes, Sir.
§ Mr. GryllsDoes my right hon. Friend agree that since, apparently, nobody really knows whether Inmos will succeed or fail, it might be wiser to let the first investment in Colorado Springs mature to see whether it is successful before deciding on the second investment? That would give the Government time to receive an independent view by outside experts—not committed to the scheme one way or the other—before the second investment is considered and decided upon.
§ Sir K. JosephI am sure that the NEB will read my hon. Friend's comments and take them into account.
§ Mr. PalmerDoes not the right hon. Gentleman, with his ministerial experience, understand by now that British private enterprise is not particularly adventurous when it comes to taking risks? Does he agree that if the State does not invest, in whole or in part, Inmos will not happen at all?
§ Sir K. JosephI accept neither proposition in its unqualified form.
§ Mr. SquireDoes my right hon. Friend accept that Government Members support his Department's determination to reduce investment in declining industry, but that they will expect the Department to look sympathetically at all investment in expanding industries, particularly when private industry has declined to take part?
§ Sir K. JosephI have told the House that there is a commercial interest in Inmos from the private sector which the NEB is now testing.
§ Mr. John EvansIs the Secretary of State aware that most people who are worried about this technology are alarmed at his vacillating weakness? Is it not time that he made a decision and insisted that the new production unit went to a development area?
§ Sir K. JosephThe hon. Gentleman is asking me to make good a failure in arrangements made by the Government whom he supported when they were in office. Surely it would be imprudent for me to force taxpayers' money upon the NEB when commercial interests are expressing an interest in replacing some of the taxpayers' money?
§ Mr. John SilkinI thank the right hon. Gentleman for his praise of my right hon. Friends and his acceptance of the principle that they enunciated. Does he agree that considerable praise is due to the capitalist countries, including Japan to the extent of over £500 million a year, which put Government money into such spheres?
§ Sir K. JosephOn the contrary, it was my right hon. Friends who accepted the principle that ventures tend to go better if those who invest in them stand to gain from success. As for the comparison with Japan, the right hon. Gentleman is taking into account a lot of public sector support for public utilities, which also occurs in this country.