House of Commons Hansard Debates for 18 Jul 1990

NRDC

46. Mr. Neil Hamilton : To ask the Secretary of State for Trade and Industry how much the National Research and Development Corporation cost in (a) 1975, (b) 1979 and (c) 1989 ; and whether he will make a statement about its future.

57. Mr. Allan Stewart : To ask the Secretary of State for Trade and Industry how much the National Research and Development Corporation cost in (a) 1975, (b) 1979 and (c) 1989 ; and whether he will make a statement about its future.

Mr. Douglas Hogg : The National Research Development Corporation does not represent a cost to the Exchequer. In 1975 the Corporation remitted £3.9 million to Her Majesty's Government ; in 1979, £9.4 million and in 1989 £9.6 million.

Since 1981 the corporation has, with the National Enterprise Board, operated as the British Technology Group. The Government consider that it would be appropriate for the British Technology Group to be transferred to the private sector when suitable arrangements can be made.

Short-termism

49. Dr. Kim Howells : To ask the Secretary of State for Trade and Industry whether he intends to make any proposals to control the short- termism in British industry.

120. Mr. Hoyle : To ask the Secretary of State for Trade and Industry whether he intends to make any proposals to counter short-termism in British industry.

Mr. Lilley : Like my right hon. predecessor, to whom I pay tribute, I recognise the importance of this. Companies' ability to invest for the long term is a function of their profitability. The profitability of British industry has returned of late to the highest levels for 20 years and business investment has reached record levels.

Rover Group

50. Mr. Radice : To ask the Secretary of State for Trade and Industry if he expects to meet the European Commission to discuss the sale of the Rover Group.

75. Mr. Michael J. Martin : To ask the Secretary of State for Trade and Industry if he expects to meet the European Commission to discuss the sale of the Rover Group.

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Mr. Douglas Hogg : I have no plans to do so.

74. Mr. Beaumont-Dark : To ask the Secretary of State for Trade and Industry when he next intends to visit the Rover Group.

Mr. Douglas Hogg : I have no immediate plans to do so.

88. Mr. Mullin : To ask the Secretary of State for Trade and Industry if he will examine the records of previous privatisations to determine whether any arrangements similar to those recently vetoed by the European Economic Community in the case of the sale of Rover to British Aerospace have been made in relation to any other company.

Mr. Douglas Hogg : The National Audit Office investigates all significant privatisations and decides whether it is necessary to report to the Public Accounts Committee as it did in the case of the Rover Group.

141. Mr. McAvoy : To ask the Secretary of State for Trade and Industry when he expects to respond to the European Community's recent communication on the sale of the Rover Group.

Mr. Douglas Hogg : I refer the hon. Gentleman to the reply that I gave the Member for Clwyd, South-West (Mr. Jones).

Fibre Optics

52. Mr. Dicks : To ask the Secretary of State for Trade and Industry what studies have been made of the cost of creating a national fibre optic network.

56. Mr. Summerson : To ask the Secretary of State for Trade and Industry what studies have been conducted of the cost of creating a national fibre optic network.

113. Mr. Arbuthnot : To ask the Secretary of State for Trade and Industry what estimate he has made of the cost of creating a national fibre optic network.

Mr. Forth : The study by the PA Consulting Group, "Evolution of the United Kingdom Communications Infrastructure" (HMSO 1988), which was commissioned by my Department, contains estimates comparing the costs of development of the communications infrastructure under various scenarios. The report includes an estimate that over the period 1991-2010 the creation and maintenance of a national fibre optic grid would cost approximately £82 billion, compared to £61 billion for a network that might be expected to result from a continuation of what the study describes as the current system of lightly regulated competition.

EC Industry Ministers

53. Mr. Alan W. Williams : To ask the Secretary of State for Trade and Industry which meetings of the European Community's Industry Ministers he has not attended in the past year.

Mr. Douglas Hogg : I have attended each of the Industry Council meetings during the last year, with the exception of the 28 May 1990 meeting, which was attended by Sir David Hannay, the United Kingdom permanent representative to the European Communities.

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Supervisory Bodies

54. Mr. Conway : To ask the Secretary of State for Trade and Industry whether he has any plans to establish any new bodies to oversee industry.

129. Mr. Robert Banks : To ask the Secretary of State for Trade and Industry if he has any plans to set up any new official bodies to oversee British manufacturing industry.

Mr. Hogg : I have no plans to establish any new bodies to oversee industry.

114. Mr. Hayes : To ask the Secretary of State for Trade and Industry whether he has any plans to establish any new bodies to oversee industry.

Mr. Douglas Hogg : I have no plans to establish any new bodies to oversee industry.

Link Projects

58. Mr. Darling : To ask the Secretary of State for Trade and Industry what progress has been made in the setting up of Link projects in the current financial year.

97. Mr. Battle : To ask the Secretary of State for Trade and Industry what progress has been made in the setting up of Link projects in the current financial year.

118. Mr. Bernie Grant : To ask the Secretary of State for Trade and Industry what progress has been made in the setting up of Link projects in the current financial year.

Mr. Douglas Hogg : Since the beginning of the current financial year 10 more Link projects have been announced, bringing the total number of active projects to 65. In addition by 29 May 1990 another 12 projects were through all stages of technical approval, bringing the total number of projects having gained technical approval to 57, and a further 50 full proposals are at the technical approval stage. There are many more projects in the pipeline.

Environmental Protection

59. Mr. Allan Adams : To ask the Secretary of State for Trade and Industry if he has any new proposals to encourage British industry to take further measures to protect the environment.

131. Mr. Bradley : To ask the Secretary of State for Trade and Industry if he has any new proposals to encourage British industry to take further measures to protect the environment.

Mr. Forth : I shall continue to encourage British industry to respond positively to the challenges and opportunities presented by environmental issues. My Department's environmental unit offers advice, and where appropriate assistance, on such issues including the development of improved environmental technology, waste management and recycling. It also keeps fully abreast of the impact of all environmental issues on business efficiency and

competitiveness and contributes accordingly to the development of environmental policy and regulation.

Transputers

60. Mr. Robert Hughes : To ask the Secretary of State for Trade and Industry how many applications for export licences for transputers have been refused in the past six months.

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78. Mr. James Lamond : To ask the Secretary of State for Trade and Industry how many applications for export licences for transputers have been refused in the past six months.

86. Mr. Snape : To ask the Secretary of State for Trade and Industry how many applications for export licences for transputers have been refused in the past six months.

134. Mr. Buchan : To ask the Secretary of State for Trade and Industry how many applications for export licences for transputers have been refused in the past six months.

Mr. Redwood : A licence is required to export transputers to any destination under the Export of Goods (Control) Order 1989, as amended. An export licence has been refused for transputers during the last six months and several export licence applications have been withdrawn.

Airline Competition

62. Mr. Ian Taylor : To ask the Secretary of State for Trade and Industry when he next intends to meet Sir Leon Brittan to discuss promoting competition in the provision of European air services.

Mr. Douglas Hogg : I will meet Sir Leon Brittan as and when necessary for discussion of a wide range of topics.

Post Office

65. Mr. Barry Field : To ask the Secretary of State for Trade and Industry when he next intends to meet the chairman of the Post Office to discuss the quality of postal services.

Mr. Forth : My right hon. Friend the Secretary of State has not yet had the opportunity to meet the chairman of the Post Office, Sir Bryan Nicholson.

Regional Policy

67. Mr. Fisher : To ask the Secretary of State for Trade and Industry if he will make a statement on his regional policy.

Mr. Douglas Hogg : The Government remain committed to an effective regional policy and will continue to make the necessary resources available.

83. Mr. Andrew Mitchell : To ask the Secretary of State for Trade and Industry whether he has any plans to introduce new regional policies.

132. Mr. Donald Thompson : To ask the Secretary of State for Trade and Industry what plans he has to introduce new regional policies.

Mr. Douglas Hogg : There are no plans to introduce new regional policies. The Government remain committed to an effective regional policy and will continue to make the necessary resources available.

RECHAR

70. Mr. Hinchliffe : To ask the Secretary of State for Trade and Industry what response his Department has given to the European Commission's recent request for details of the additional policy instruments and financial support to be made available to local authorities to ensure that the RECHAR allocation can be fully utilised.

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Mr. Douglas Hogg : No such request has been received.

126. Mr. O'Brien : To ask the Secretary of State for Trade and Industry when he last met representatives of local authorities to discuss progress with RECHAR ; and if he will make a statement.

Mr. Douglas Hogg : Officials of my own and other Departments have been in close touch with local authorities and other local interests in the preparation first of the United Kingdom's list of proposed areas to be included in RECHAR and now of the operational programmes for the areas selected by the European Commission. During the course of my regional visits I have also met local authority representatives and RECHAR has been one of several issues raised by them. I have made representations to the European Commission about areas it has not selected and will do so in regard to programmes as may be necessary.

Dunsdale Securities

72. Mr. Patchett : To ask the Secretary of State for Trade and Industry what representations he has received about the regulatory system since the collapse of Dunsdale Securities.

111. Mr. Rogers : To ask the Secretary of State for Trade and Industry what representations he has received about the regulatory system since the collapse of Dunsdale Securities.

116. Mr. Stott : To ask the Secretary of State for Trade and Industry what representations he has received on the regulatory system since the collapse of Dunsdale Securities.

Mr. Redwood : I receive a considerable number of representations on a variety of topics relating to the regulation of financial services. The volume and type of representations have not changed since the collapse of Dunsdale Securities. We consider very carefully those which relate to the scope or framework of the regulatory system or to the powers under the Financial Services Act which the Government retain. Those which relate to matters which are the responsibility of the SIB or another regulatory authority are passed to the appropriate body.

Mr. Cousins : To ask the Secretary of State for Trade and Industry whether the audited returns of Dunsdale Securities submitted to his Department between 1983 and 1988 included a source and application of funds statement.

Mr. Redwood [holding answer 17 July 1990] : accounts filed at Companies House by Dunsdale Securities Ltd. for the years 1984 to 1988 include a source and application of funds statement ; the accounts for 1983 do not.

Cars (Clocking)

73. Mr. Clelland : To ask the Secretary of State for Trade and Industry if he will give the most recent estimate by his Department of the number of cars which are clocked.

92. Mr. Tom Clarke : To ask the Secretary of State for Trade and Industry if he will give the most recent estimate by his Department of the number of cars which are clocked.

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Mr. Forth : My Department does not produce such estimates.

British Telecom

77. Mr. Quentin Davies : To ask the Secretary of State for Trade and Industry what is the current value of the Government's shareholding in British Telecom.

100. Mr. Knowles : To ask the Secretary of State for Trade and Industry what is the current value of the Government's shareholding in British Telecom.

144. Mr. Wells : To ask the Secretary of State for Trade and Industry what is the current value of the Government's shareholding in British Telecom.

Mr. Forth : HM Government currently hold 2,941 million ordinary shares in British Telecommunications plc. The shareholding has a value of some £8,900 million at current market prices.

TUC

79. Mr. Carr : To ask the Secretary of State for Trade and Industry when he next expects to meet the general secretary of the Trade Union Congress to discuss the performance of British manufacturing industry.

Mr. Douglas Hogg : I have no plans to meet the general secretary of the Trades Union Congress at present. However, Ministers and officials of my Department has frequent contacts with other bodies, where the TUC is represented, on a wide range of business matters.

Insurance

80. Mr. Teddy Taylor : To ask the Secretary of State for Trade and Industry if, under the relevant European Community directives, British insurance companies will be able to canvas for life insurance and for the insuring of cars, houses and other items of individual property insurance within the European Economic Community after 1992 ; and if he will make a statement.

Mr. Redwood : There is already freedom of establishment for insurance within the European Community, and United Kingdom insurers established in other member states may advertise there on the same basis as local insurers. The Commission's aim which we strongly support, is also to achieve full freedom for companies to sell insurance on a service basis. The Commission have therefore announced their intention of proposing two further directives, one for life and one for non-life insurance, which will allow insurers to advertise and sell their products anywhere in the Community either on a services basis or from a local branch, on the basis of a single authorisation from their home state supervisor. These directives are however unlikely to come into force until after 1992.

125. Mr. Butterfill : To ask the Secretary of State for Trade and Industry what progress he is making towards the establishment of a free market for the sale by British companies of (a) general insurance and (b) life assurance products within the European Community.

Mr. Redwood : As regards general insurance, three single market directives came into force on 1 July and a

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common position on a fourth (on motor insurance services) was agreed at the internal Market Council on 20 June. The most important of these directives, on Non-Life Insurance Services, established freedom to sell most forms of commercial insurance across frontiers in the Community.

As regards life assurance, a common position was adopted on 29 June on the draft life assurance services directive, which will allow the sale of life insurance across frontiers in cases where the policyholder has taken the initiative in seeking insurance, either directly or through a broker, from a company in another member state.

These directives are important steps towards a free market, but many restrictions remain. I therefore strongly support the announced intention of the Commission to produce two further directives, one each on general insurance and life assurance. These will allow insurers to advertise and sell their products anywhere in the Community, either on a services basis or from a local branch, on the basis of a single authorisation from their home state supervisor.

Mr. Robert G. Hughes : To ask the Secretary of State for Trade and Industry whether he intends to publish the names of the companies that have notified him of their intention to take control of insurance companies ; when he expects to announce the decision he reaches on whether they are fit and proper to take such control ; and if he will make a statement.

Mr. Redwood : No. The Department's consideration of cases under section 61 of the Insurance Companies Act 1982 which deals with changes of control of insurance companies is confined entirely to the regulatory issue of whether the proposed controller is fit and proper. In order to form a view on that question, the Department considers all relevant information, much of which is confidential. It would be inappropriate for the Department to disclose that the procedures had been launched or to reveal the stage which they had reached.

Where a change of control involves a public bid, it would be normal for any necessary regulatory consent to be a condition of the offer, and for that fact to be disclosed when a firm intention to make an offer is announced, and in the offer document. If the course taken by the regulatory procedures gave rise to price-sensitive information, it would be for the bidder to disclose the relevant facts. The Department must concentrate on its task of judging fit and properness under the law ; the bidder or target company on any legal or other requirements which may apply to them to make available all necessary information.

Provided that all the necessary regulatory consents are available, the market should determine the outcome of a proposed takeover.

Departmental Expenditure

82. Mr. Ernie Ross : To ask the Secretary of State for Trade and Industry what was the expenditure of his Department in 1989 ; and what is the planned expenditure for the current year, in real terms.

99. Mr. Turner : To ask the Secretary of State for Trade and Industry what was the expenditure of his Department in 1989 ; and what is the planned expenditure for the current year, in real terms.

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Mr. Forth : The expenditure of my Department in 1989-90 was £1, 275.9 million. The planned expenditure for 1990-91 is £1,088.0 million at 1989-90 prices.

109. Mr. Hague : To ask the Secretary of State for Trade and Industry how much his Department spent in 1989-90 expressed as a percentage of gross domestic product ; and what was the comparable figure for the Japanese Ministry for International Trade.

Mr. Lilley : Expenditure by the Department of Trade and Industry last year was 0.24 per cent. of gross domestic product whereas general expenditure by Japan's Ministry of International Trade was equivalent to only 0.17 per cent. of Japanese gross domestic product even though its responsibilities are wider.

ECGD

85. Mr. Morgan : To ask the Secretary of State for Trade and Industry what representations he has received regarding the trade sale of the Insurance Services Group of the Export Credits Guarantee Department.

Mr. Redwood : A number of representations and expressions of interest have been received. However, this issue is a matter of commercial confidence. No decisions have yet been taken on the question of ownership.

Libya

89. Mr. Ron Brown : To ask the Secretary of State for Trade and Industry what is the major category of goods exported to Libya ; and if he will make a statement.

Mr. Redwood : Machinery and transport equipment (SITC section 7) accounted for 56 per cent. of all United Kingdom visible exports to Libya in 1989.

Consumer Guarantees Bill

91. Mr. Livingstone : To ask the Secretary of State for Trade and Industry what further representations he has received on the Consumer Guarantees Bill.

136. Mr. McCartney : To ask the Secretary of State for Trade and Industry what further representations he has received on the Consumer Guarantees Bill.

Mr. Forth : I refer the hon. Member to the reply that I gave on 17 May 1990 at column 459. Since then my Department has received a number of further representations about the Consumer Guarantees Bill, from both individuals and various organisations. It would not be appropriate to give details of those representations without the permission of the individuals and organisations concerned.

Departmental Staff

98. Mr. Bell : To ask the Secretary of State for Trade and Industry if he has any plans to reduce the number of staff in his Department.

133. Mr. Corbett : To ask the Secretary of State for Trade and Industry if he has any plans to reduce the number of staff in his Department.

Mr. Forth : Manpower projection for my Department to 1992-93 were set out in chapter 4 of the public

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expenditure White Paper (Cm. 1004) published in January 1990. These envisaged a fall in total manpower from 11,933 in 1990-91 to 11,876 in 1992-93. The then Secretary of State subsequently announced, in his written reply of 21 February, a reduction of some 100-150 posts as a result of the reorganisation of the Department's "market" divisions. Final figures for 1991-92 and projections for future years will be settled later this year following the conclusion of the current Public Expenditure Survey round.

Grants to Industry

101. Mr. Gill : To ask the Secretary of State for Trade and Industry what was the total cost of grants in aid to industry in the last financial year.

Mr. Douglas Hogg : The whole of my Department's programme expenditure is aimed at encouraging wealth creation by British industry and commerce, partly through the provision of grants and services to the private sector.

Grants paid direct to private sector firms in 1989-90 totalled some £520 millions net of relevant receipts. They included regional development grants, regional enterprise grants, selective assistance, support for the aerospace and shipbuilding industries and support for research and development.

In addition, my Department spent some £105 millions on export promotion and consultancy initiatives, which provide services direct to the private sector.

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