§ 70. Mr. Butcherasked the Minister for the Civil Service what was the total value of data processing equipment purchased by Government Departments in the financial year 1979–80; and what proportion of this total was for equipment of foreign manufacture.
§ Mr. ChannonThe total value of data processing equipment purchased by the Central Computer and Telecommunications Agency for Government Departments in the financial year 1979–80 was £45,272,164. Of this value, 39.1 per cent. was for the equipment of foreign manufacture. The cost of manufacture is normally between 30 per cent. and 40 per cent. of the purchase price of data processing equipment, whilst recovery of research and development costs is likely to vary between 12½ per cent. and 25 per cent. These elements of cost are mainly incurred in the country of origin. Most of the remaining elements of cost—support, installation and general overheads—are incurred in the country in which the equipment is installed. In addition, the equipment has to be maintained—usually for about 10 years—in the country installed. The cost of 10 years' maintenance will probably exceed the initial purchase price, and the main element in this maintenance cost is local labour. It is noteworthy that it is not only computer systems supplied by the multinationals which include equipment of foreign manufacture. These figures do not include purchases of data processing equipment by Ministry of Defence for operational purposes or for use in R and D establishments.