§ Mr. Dellasked the Secretary of State for Trade and Industry what requirements he imposes regarding the completion of non-departmental research projects which he finances; whether he is satisfied that these requirements are adhered to; whether there is non-productive expenditure; and how much.
§ Mr. David PriceEach non-departmental research project is the subject of a negotiated contract or agreement. Payment is conditional on satisfactory performance of the work and provision is made for termination if the contractor defaults or if it is no longer considered worthwhile to continue; in the latter case, termination may be by mutual agreement. I am satisfied that these requirements are adhered to. It is, however, in the nature of research that there may be nonproductive expenditure; for example, though the work may be satisfactorily carried out, the results may not come up to expectation; or there may be a reassessment of the original objective. In such cases, nevertheless, expenditure can 197W only rarely be said to be completely non-productive. It is thus not possible to give accurate figures for non-productive expenditure as such, but the proportion is very small.