HC Deb 29 February 1984 vol 55 cc252-3
15. Mr. Pike

asked the Secretary of State for Trade and Industry if he will make a statement regarding Government policy and strategy for the television and video industry.

Mr. Kenneth Baker

The Government's policy for the television and video industry is to encourage British companies to compete with foreign manufacturers in both domestic and export markets by improving their productivity and the quality and technology of their products.

Mr. Pike

Does the Minister recognise that in respect of cable and satellite television, the British television and electronics industry is at present well in advance of our Japanese and foreign competitors? Will the Government take all the necessary decisions to ensure that British manufacturers take advantage of this lead before the Japanese and other competitors catch us up?

Mr. Baker

I am glad to be able to agree with the hon. Gentleman. One of the reasons why we are keen on both cable and DBS is that at present we have a lead in both these technologies. If cable systems can be operated in the United Kingdom in the next 12 months, and if the satellite can be launched successfully, we shall have satellite television in 1987–88 and have a lead on any other European country. That will give us a technological lead in the manufacture of sets and equipment. That is why we are pushing ahead so strongly.

Mr. Holt

Does my right hon. Friend agree that the biggest stimulus that could be given to the television and video industry is for the Government to revise the policy whereby licensing, which is a form of taxation, removes the incentive for entrepreneurs such as Clive Sinclair? Would it not be much better if the industry were freed from this outmoded taxation — which falls unfairly on all sectors of the community—by the abolition of television licensing, thereby allowing the BBC to be funded in a different manner?

Mr. Baker

That matter is really for the Home Secretary, as it goes much wider than my departmental responsibilities. The present licensing system has not hindered Sir Clive Sinclair, who has developed the best small television set in the world, at about a third of the cost of that produced by the Japanese.