HC Deb 21 February 1969 vol 778 cc167-8W
Mr. Eric Lubbock

asked the President of the Board of Trade if he will give an estimate of the additional amount of investment grants payable on the basis that expenditure on computer software ranked for grant; and what was the amount of investment grants paid in the financial year 1967–68 on software included in the purchase price of computers.

Mr. Dell

The information is not available. Applicants for grant are not asked to identify separately that part of the capital cost of a new computer which relates to software. Furthermore, I have no basis on which to estimate the amount of subsequent expenditure on software on which grant is not paid.

Mr. Lubbock

asked the President of Board of Trade if he will give an estimate of the additional amount of investment grants payable on the basis that capital expenditure on installation of a computer ranked for grant notwithstanding the fact that the computer is leased and not bought outright.

Mr. Dell

Investment grant may be paid on capital costs incurred by lessors in the installation of leased computers. Had grant been payable on installation costs incurred in 1967 by lessees the additional amount is estimated at about £1¼ million.

Mr. Lubbock

asked the President of the Board of Trade whether he is aware that his Department is allowing investment grants for data transmission equipment and computer terminals where these are located in the same building as the central computer, but not when they are carrying out an identical function at another location; and if he will give instructions for this distinction to be removed.

Mr. Dell

Equipment whose primary function is data transmission does not rank for grant. The admissibility of other computer equipment for investment grant does not depend on its location, though other differences, e.g. of function or of ownership, can affect the decision whether grant is payable. If the hon. Gentleman will give me details of any case where he believes there has been inconsistency of treatment I will investigate it.

Mr. Lubbock

asked the President of the Board of Trade why, in view of the fact that in a computer installation, both magnetic tapes and magnetic discs are used for the storage of information, investment grants are payable on the latter and not on the former.

Mr. Dell

Grant is payable on an initial supply of magnetic tapes as part of the cost of a new computer, but not on subsequent purchases as these tapes have the character of consumable stores. Magnetic discs are, however, long-lived capital assets.