HC Deb 14 May 1986 vol 97 cc693-4
6. Mr. Powley

asked the Secretary of State for Trade and Industry how much his Department is spending on support for research and development; and if he will give comparable figures for 1979–80.

The Minister for Information Technology (Mr. Geoffrey Pattie)

My Department plans to spend £415 million in 1986–87 on support for research and development. The comparable figure for 1979–80 was £142 million.

Mr. Powley

I thank my hon. Friend for that informative answer, but does he agree that the Government have an important and continuing role in research and development alongside industry and commerce? What efforts have been made in the Norwich area in that direction?

Mr. Pattie

I agree with my hon. Friend. Under the support for innovation scheme, 11 projects worth over £8 million are being supported in the Norwich travel-to-work area with grants of nearly £1.4 million. The technologies supported include electrical engineering, food machinery and printing. One of the largest recipients of DTI support in the area has been Datron Electronics, which manufactures electronic test and measurement equipment. I plan to vist that company in the near future, and I look forward to seeing the results of my Department's support.

Mr. Lamond

In view of the tremendous success of the A320 Airbus, which managed to achieve 81 definite orders in the first 10 months of last year and employs about 30,000 people in Britain, is there any chance of some of that £405 million being given as a loan as a launch-aid and research and development aid to the A330 and A340?

Mr. Pattie

The hon. Gentleman is understating the case on the A320, which has already been the subject of launch-aid, because when I checked a few days ago there were about 130 orders with deposits.

I answered the question about the A330 and A340 on a previous occasion when I said that we await the discussions with British Aerospace and the Airbus consortium, which have yet to decide whether they want to proceed with those projects.

Mr. Pawsey

I appreciate what my hon. Friend has done for research and development, but what plans has he to encourage industry to do more R and D? Does he agree with mergers, for example between companies such as GEC and Plessey, which would then concentrate resources on research and development, to the benefit of the nation in penetrating export markets abroad?

Mr. Pattie

I am sure that my hon. Friend would not want me to comment on that particular example when it is still the subject of a reference to the Monopolies and Mergers Commission. It is obviously advantageous to British industry to have certain centres of excellence within industry, and there can be advantages in some companies coming together to provide a scale that will enable them to compete in international markets. We would expect an increase in research in industry to come from an increase in improved profitability, and at present profitability levels are at their highest since 1973.

Mr. Geoffrey Robinson

Will the Minister confirm, however, that under the important support for innovation scheme funds available have been cut this year and will be cut further next year? Is he aware that the Treasury attitude towards United Kingdom expenditure on research and development in Europe is damaging to British interests? Can he assure the House that United Kingdom contributions to such programmes as EUREKA and ESPRIT in Europe are not being offset by cuts in national United Kingdom programmes in Britain?

Mr. Pattie

Yes, I can give the hon. Gentleman that assurance, because we have made it clear that EUREKA and ESPRIT programmes will be funded up to what industry regards as satisfactory levels. There is a planned reduction in the support for innovation scheme, because we have increased the provision on awareness programmes, technology transfer programmes, advisory services and industry education, by 25 per cent.