HC Deb 02 August 1972 vol 842 cc145-7W
Mr. Parkinson

asked the Secretary of State for Trade and Industry whether he is yet able to make a further statement on the Fourth Report, Section 1970–71, of the Select Committee on Science and Technology.

Mr. Chataway

The Government have now considered this comprehensive report, whose recommendations related to (i) direct support of the computer and related industry and (ii) Government purchase and use of computers.

I announced on 3rd July, 1972, a substantial increase in R and D support for International Computers Ltd. A number of additional measures of support for the computer and related industries have been adopted:

(a) a number of contracts have been placed for the development of advanced applications systems to meet customer requirements, involving users and software houses in addition to ICL. Further contracts are under consideration;

(b) a scheme is being introduced, which will be operated in close association with the software industry, to support the development of software products, in order to help users develop their programmes and improve the efficiency of their systems. This is on a "pump-priming" basis, with the intention that thereafter the scheme should be sustained by the proceeds of a levy on sales of the developed products;

(c) contracts are being placed for the development of suitable software for use with remote computer terminals.

In addition DTI and the Central Computer Agency have placed a number of study contracts—e.g. of data networks—aimed at helping to develop the industry's capability to meet market demands. The total cost of the measures listed above will be about £6 million per annum of which half will be contributed by the Government.

The Government agree that Government-supported R & D should be market-oriented, and a requirement board is being set up on the basis described in the White Paper "A Framework for Government Research and Development" (Cmnd. 5046), to cover the field of computers, systems and electronics: customer interests in industry and elsewhere will be strongly represented on this board, whose role corresponds closely to that envisaged by the Committee for its proposed Computer R & D board. The Government believe it to be right, however, that the board should not be independent but directly responsible to a Minister accountable to Parliament.

The Government regard the policy of single tendering for certain computers as an important part of the support needed by ICL in present circumstances, and, as I announced on 3rd July, this will continue for the present. Competitive tendering will be used in other cases apart from those referred to in the House of Commons on 2nd March, 1971. The Government have not felt able to adopt the Committee's proposal for a system of preference based on a number of specific criteria relating to the national interest.

The Government agree that where there is advantage in inviting tenders for individual items of a system, and where the problems of systems integration and management allow of it, this should be done, but they do not consider it would be generally practicable.

The Government have already announced the setting up of the single agency to purchase computer equipment and services, and to develop and co-ordinate their use in central government. Because of the need for close association between policy for the use of computers in government, planning and execution, the Government think it right for the Central Computer Agency to be under the direct responsibility of the Minister for the Civil Service.

The Government accept the desirability of Departments making public as much information as practicable about their computer plans and progress. They consider, however, that such plans are likely to be most meaningfully presented in the context of the policies concerned, rather than as abstract computer proposals, and they do not think it would be appropriate to require formal reports on this subject to Parliament.

As announced on 25th November, 1971, the Government have accepted the Committee's recommendations for a substantial increase in the use of external service organisations. Nearly 200 contracts to a value of more than £2 million are expected to be placed with such organisations during the current financial year; this is in addition to purchases of machine-time on bureau computers.—[Vol. 840, c. 34–40; Vol. 826, c. 455.]