Research Councils (Hansard, 22 March 1985)

§ Mr. Brooke

The research councils are already free to undertake research on a contract basis, subject only to their following Government guidelines on charging. These guidelines are intended to ensure that the council's rates for commissioned research reflect the full cost of the work undertaken. Income from commissioned research to the five research councils is estimated to be some £80 million in 1984–85 or 12 per cent. of their total estimated gross expenditure. Most of the commissioned work which the research councils carry out is for Government Departments. In accordance with the customer-contractor principle set out in Cmnd. 5046 "Framework for Government R & D" (July 1972) each Government Department is individually responsible for defining its requirements for Research & Development to back its policy objectives and for commissioning research accordingly from the research councils. However, my right hon. Friend is consulted by his colleagues over any porposal to make significant changes in the scale of their commissioned research programmes.

Within the above figures, commissions from industry are estimated to be worth some £5 million in 1984–85. The Government's policy is to encourage the research councils to collaborate more closely with industry and generally to attract more funding from provate sector sources. To this end, the Government have announced the ending of the British Technology Group's right of first refusal to exploit the findings of research funded by the research councils 624W and is introducing new arrangements which will give academic researchers greater incentive to exploit the commercial potential of their inventions.

My right hon. Friend, in announcing the grants-in aid for the research councils for 1985–86, explained that in some cases these grants-in-aid include money intended to help the council concerned to restructure. Such restructuring should increase the councils' flexibility and hence their ability to secure new commissions.