HC Deb 23 January 1995 vol 253 cc12-4
27. Mr. Ian Bruce

To ask the Chancellor of the Duchy of Lancaster what is his estimate of the total amount spent on science and research in the United Kingdom; and if he will list the proportions paid for by Government and by other sources of funding.

The Chancellor of the Duchy of Lancaster (Mr. David Hunt)

Approximately £13,000 million, of which 35 per cent. is paid for by Government.

Mr. Bruce

I thank my right hon. Friend for that encouraging reply about the amount spent on research and development. Can he confirm that the Government proportion is greater than the average of our competitor nations, and that, unfortunately, the business proportion is slightly less than the average of our competitor nations? What can he do to encourage businesses to realise that research and development is the cornerstone of their future prosperity?

Mr. Hunt

I agree with my hon. Friend's assessment of the present position, but today's gross domestic product figures show that the UK is truly top of the premier league for growth in Europe, and we intend to stay there. The best way to ensure that we do so is to invest in the future, and to urge industry to do the same. Investing in the future means investing in research and development, and it is good news that industry's investment in R and D has increased, according to the latest figures, by 3 per cent. in real terms.

Mr. Nigel Jones

Bearing in mind the fact that Britain invests less, as a proportion of GDP, than do our major competitors—France, Germany, Japan and the United States of America—what plans does the Chancellor have to help Britain do better?

Mr. Hunt

In comparison with other G7 countries, we do reasonably well, but of course we can do better. Our approach, through the technology foresight programme and through the forward look, following up the policies set out in the science White Paper, is to continue to urge the greatest possible investment in research and development, to set an example in Government, which we have done by ensuring that the science budget is now at record levels, and to maintain those record levels in the next financial year.

Mr. Rathbone

Will my right hon. Friend give us some idea of the way in which the Government give greater accent to developmental expenditure as opposed to pure research expenditure?

Mr. Hunt

Yes. We have increased the science budget by 32 per cent. in real terms in the past 15 years. My hon. Friend is right that we want an increasing emphasis on a partnership between the public sector and the private sector, especially to enable that basic research, which has always been fundamental in the United Kingdom to the strength of our science base, to be translated by proper investment, in partnership with the private sector, into the developmental stage. I completely agree with my hon. Friend.

Mr. Battle

The Minister spoke of us doing reasonably well in comparison 'with our competitors. 'Will the Minister then explain why, in spite of an overall budget cut in Japan recently, Japan's science and technology spending, through the Science and Technology Agency, was increased by 7 per cent., there was a 26 per cent. increase in funding of the human genome project and a 20.5 per cent. increase in the real world computing project, yet Britain continues to slip further behind, with overall real terms cuts in research and development this year? Does that not demonstrate that the Conservative Government only pay lip-service to science as an aid to wealth generation, and that, effectively, Ministers sit on the sidelines, while the science budget withers away?

Mr. Hunt

I am not often driven to say, "What a load of rubbish!"; I shall riot be tempted to do so on this occasion. The hon. Gentleman, however, is not comparing like with like. We compare very favourably with investment in Japan. The hon. Gentleman talked about the science budget "wilting away". The science budget is at a record level in this financial year— [HON. MEMBERS: "Overall?"] I am quoting the hon. Gentleman; he said, "the science budget is wilting away." The science budget is at a record high level; it is up by 32 per cent. in real terms. I shall take the hon. Gentleman more seriously when he comes armed with the correct information.

Mr. Alan Howarth

Bearing in mind the amount spent on research and development in the United Kingdom and how it is spent, will my right hon. Friend think carefully, before he makes a visit to South Africa, about whether it would be appropriate for our Government to encourage, let alone assist, the South Africans to make a further major commitment to developing their arms industry? Surely that is not what we really wish for them or for the other countries that would suffer as a result.

Mr. Hunt

As my hon. Friend knows, we have devoted an increasing proportion of our research and development budget to civil research. I welcome the opportunity to go to South Africa and to encourage it to develop the sort of policies, which we have seen in the United Kingdom, that foster an ever-closer partnership between the public and private sectors. Similarly, I have recently been to other countries, seeking to set up important relationships between our leading scientists and theirs. I hope that my hon. Friend shares my wish to see that relationship grow stronger.