HC Deb 17 January 2002 vol 378 cc424-6
9. Michael Fabricant (Lichfield)

What steps she is taking to promote employment in the computer hardware manufacturing industry; and if she will make a statement. [25553]

The Minister for E-Commerce and Competitiveness (Mr. Douglas Alexander)

The Government are today announcing a new £24 million LINK programme to support collaborative research in information storage and displays. This should lead to the development of the next generation of monitors and disk drives for PCs. The Government already have in place a range of assistance and schemes that are designed to increase the productivity and competitiveness of UK industry.

Michael Fabricant

That is good news for the industry. The Minister, who represents a Paisley constituency, will be aware of the fall in the number of jobs available in the development of computer hardware and computer chip technology. He will be aware that this is partly due, but only partly, to there being overcapacity in the world market. Is it not also the case, as the chairman of Fujitsu pointed out, that, for the first time since the last Labour Administration in the 1970s, the on-costs of employment in Britain are now higher than in Germany? Is it not the case that companies such as Siemens, Fujitsu and others who are having to cut back in a worldwide market are now choosing Britain to cut back rather than Germany and other countries because the cost of employment here is now so much higher because of Government legislation?

Mr. Alexander

As we have said, we cannot wholly insulate ourselves from international challenges at the moment, and the overshoot in the technology sector generally over the last couple of years is having an effect on the British market. The challenge does not come just from Germany. The challenge for computer manufacturing more widely is to move up the value chain in the UK. The hon. Gentleman was kind enough to mention my constituency of Paisley, South. In that area we are clear about the importance of computer manufacturing. The Compaq facility—where I myself was employed—is only just down the road. The challenge for such facilities is this: how do they move from basic computer manufacturing up the value chain, often involving software design? That is why the money being put into research and development by this Government is critical in assisting those companies as they move up the value chain.

Margaret Moran (Luton, South)

I congratulate my hon. Friend on yesterday's conference on women in IT, which was intended to increase the employment of women in the computer industry and across the technology industry. However, the record in terms of the employment of women is lamentably bad in that sector. With that in mind, what further measures will the Department take to increase the awareness of employment opportunities in those industries among young women, particularly, whose perception of the industry is that it is full of net nerds?

Mr. Alexander

I endorse entirely my hon. Friend's statement. If we are to be globally competitive, we cannot afford to draw on the talents of only half the population of the UK. That is why I particularly welcomed yesterday's announcement by my right hon. Friend the Secretary of State. If I had to refer to one aspect of it, it would be the work done by ambassadors, who are going into schools and actively talking to young women about potential employment opportunities within this dynamic and important sector.

Mr. Andrew Lansley (South Cambridgeshire)

The Minister may recall that the 2000 Budget document stated that Britain would be the best place in which to trade electronically by 2002. The year 2002 has arrived and the latest report from the Organisation for Economic Co-operation and Development suggests that Britain is 22nd in the ranking of those with access to broadband technologies. Will the Minister acknowledge that the Government have failed in their target, and what will he do to rectify the lack of broadband access?

Mr. Alexander

The hon. Gentleman will know that, in December, we published the broadband stakeholders group report, which drew on wide expertise from across industry. We also published the next stage of the Government's strategy in response to the challenge of broadband. Two challenges exist: extending the 60 per cent. infrastructure coverage that exists at present, and driving up broadband usage levels. At present, 1.9 million small businesses are online. One of the challenges in broadband is to deliver services and content that small businesses consider to be valuable. That is I why I especially welcomed the initiative that we launched in December, "Broadband Britain: The Content Challenge", which was directed specifically at developing content that will drive up broadband usage in the months and years to come.