HC Deb 02 April 1998 vol 309 cc1407-9
15. Mr. Purchase

If she will make a statement on her Department's policy towards encouraging innovation in British companies. [35987]

Mr. Battle

Innovation is the key to competitiveness, and businesses need to innovate if they are to succeed.

Mr. Purchase

Does my hon. Friend agree that, despite the previous Administration's wilful neglect of our science base, we none the less continue with important work in the scientific field? Does he also agree that British firms have traditionally been rather poor at innovation, with good ideas being sold abroad in order to get the innovation on to the market? Will he assure the House that much of the red tape introduced by the Conservatives for grant qualification purposes will be swept away by the Government, in order to give an incentive to our firms to get the products that we so splendidly discover and develop on to the market in good time?

Mr. Battle

My hon. Friend has for all his years in the House championed the cause of manufacturing and engineering. Not only will we remove barriers; we will positively promote innovation. That is why we are promoting the millennium products initiative and the foresight link initiative. Across the road in Horseguards parade there is an exhibition, Powerhouse::UK, which sets out the innovative products and processes that will lead us through to the 21st century. There are innovations in engineering, biotechnology and communications. It is a showhouse of what can be achieved with positive support.

Mr. Nicholas Winterton

Clearly, the Government are strongly of the view that innovation and research and development are essential to the future success and competitiveness of British manufacturing industry. Is it not true, however, that to innovate and to undertake research and development requires money? Frequently, manufacturing industry needs to borrow money to undertake innovation, research and development. Currently, the level of interest rates in the United Kingdom is not particularly helpful to the future success of manufacturing industry or its competitiveness. What measures can the Board of Trade take to mitigate the effects of the high level of interest rates, to ensure that what the House wants—the success of manufacturing industry—can be fully achieved?

Mr. Battle

The hon. Gentleman, too, has a record of campaigning for manufacturing industry. Of course the interest rates are worrying. However, the information is patchy. A report by the Chartered Institute of Purchasing and Supply this morning states that manufacturers have continued to defy the ravages of a strong pound, so it is not true that all is lost. We will continue to promote innovation and underpin it with fiscal measures.

The consultation document "Innovating for the future—investing in research and development innovation" is of paramount importance to find new partnerships and new ways to ensure that companies invest in the longer term. Some companies such as pharmaceuticals do, but we have a long way to go with many other companies to ensure that they move forward into the 21st century.

Mr. Reed

Does my hon. Friend agree that British innovation has too often led to manufacturing success for other countries? I thank him and his Front-Bench colleagues who have visited Loughborough university in recent months. I issue an invitation to those who have not yet made it to Loughborough to see the excellent innovation work that is going on. Will my hon. Friend join me in congratulating our right hon. Friend the Chancellor of the Exchequer in making available £50 million-worth of innovation money, which I know from my discussions with Loughborough university was greatly welcomed? It will lead to more job creation from small innovative ideas that have worldwide links. Two companies that Ministers have already visited in my constituency have created 150 jobs from two simple ideas. That is how we shall create jobs for this country. I hope that my hon. Friend will join me again in a visit to Loughborough university.

Mr. Battle

I am grateful to my hon. Friend, and I welcome his invitation. It is good to hear that the university challenge scheme and other such measures are already working through. The initiatives that we are taking will have a positive effect.

Mr. Stunell

Does the Minister recognise that innovation is difficult for companies that face the random effects of the anti-dumping textile levy? A company in my constituency, Strines Textiles, is facing 100 job losses, not innovation, as a result of the levy. Will the Minister give an assurance that the Government will be strongly behind Strines Textiles' fight to get this temporary levy lifted as soon as possible so as to protect jobs in my constituency?

Mr. Battle

We fought hard and consistently on the measure to which the hon. Gentleman refers and we shall continue to do so to ensure that our industries are not unfairly priced out of the market. We have a consistent line on these matters. We have registered our objections and we shall continue to do so where unfair trading occurs.