Research and Development

HC Deb 20 March 1991 vol 188 cc282-4

18. Dr. Bray

To ask the Secretary of State for Trade and Industry whether his Department is meeting its objective of encouraging industry to increase its funding of research and development.

Mr. Leigh

My Department is successful in encouraging industry to spend more on research and development. The total of industry-financed R and D has increased by almost one half since 1983 in real terms.

Dr. Bray

Is not it a matter of great concern that industrial research and development has fallen by 4.7 per cent. according to figures published last week by the Central Statistical Office? Since 1985, the only industry to have increased its research is the chemical industry, with a 41 per cent. increase in real terms. There have been catastrophic falls in R and D of 6 per cent. in electronics, 20 per cent. in aerospace, 39 per cent. in electrical engineering and 40 per cent. in mechanical engineering. Is not that proof positive of the disastrous failure of the Government's industrial policy?

Mr. Leigh

I hope that the hon. Gentleman will agree that the most valuable research and development in industry is that planned for and funded by industry itself—that has grown by a half since 1983. Of the £7 billion spent on R and D in industry, no less than 73 per cent. comes from industry itself. However, it must be accepted that in some aspects of research and development, such as pre-competitive or collaborative research, particularly in small businesses, there is a role for the Government. My right hon. Friend the Secretary of State has taken a keen interest in such matters and introduced new schemes that are widely welcomed by industry. It will be good to end Question Time by quoting the Confederation of British Industry—[Interruption.] Opposition Members are obviously not interested in the views of the CBI—I thought that they were.

John Banham wrote to my right hon. Friend on 19 February and said: We were very pleased to hear the announcement of your new £48 million package of aid schemes for small firms … The addition of SPUR to the DTI portfolio and the greater emphasis you are now placing on technology consultancy … another area which we felt required strengthening and will, I am sure, be much welcomed by CBI Members.