§ Mr. Arnold Shawasked the Prime Minister whether he will make a statement on the Government's approach to microelectronics.
§ The Prime Minister:It is the Government's policy that microelectronics technology should be adopted widely throughout British industry. This view is supported by the recent report from the Advisory Council for Applied Research and Development, a new report by the Central Policy Review Staff, and by the electronic components sector working party. The Government recognise that the new technology will involve job losses as a result of higher productivity, for example on certain production lines and in telecommunications operations. But there will be offsetting gains in producing microelectronic devices and in the software industry; from the production and export of new products; and from the general increase in real incomes which microelectronics can make possible.
However, the main effect of this technology on jobs will be through its impact on the United Kingdom's international competitiveness: as a trading nation, we have no option but to adopt it if we are to compete in world markets. For this reason I announced at a meeting of the National Economic Development Council on 6th December a programme of action with three main aims: first, to increase the number of people with the relevant skills through education, training and retraining for those whose jobs will disappear: secondly, to increase awareness 727W of the technology in industry and more widely; and, thirdly, to encourage companies to apply it.
The details of this comprehensive programme, which will cost about £100 million over three years, are contained in the Government's paper to NEDC. I have placed a copy of this paper in the Library of the House, together with copies of the CPRS paper, a paper by the director general of the National Economic Development Office, a paper by the chairman of the electronic components SWP, and my introductory statement at the NEDC meeting.