asked the Minister of Technology what plans he has regarding the level of Government financial assistance to private industry.

We are reviewing the whole field of assistance to private industry.

Would the hon. Gentleman not agree that the greater the uncertainty in this matter the greater the damage which will be done to development areas? Since most of these firms contributed generously to the Tory Party funds, is not this a squalid way of treating them?

I agree that uncertainty is unsettling. We will speed this up as fast as we possibly can, but this review must be completed first.

While I accept that it is the responsibility of the Government to provide assistance, particularly to areas where there is heavy unemployment, may I ask my hon. Friend whether he agrees that this assistance should not be provided by the I.R.C.? Would he also accept that that body should be abolished without delay?

These are all matters for our review.

Will the Minister give the House an assurance that existing projects into which commitments have been entered will not be affected by the present review?

Yes.

asked the Minister of Technology if he will propose the introduction of a Government research and development project in the North-East.

The Department is supporting a number of research and development projects, both directly and through the N.R.D.C., in the North-East. My right hon. and learned Friend will naturally have regard to the special problems of the Northern Region and other development areas in considering any future projects.

Is the Minister aware that the North-East is the only region in the country without a directly sponsored R. and D. project, and would he not agree that it would be of great benefit to the North-East to establish such a venture?

I do not think the hon. Member is quite right in his facts. What I think he means is that there is no research establishment coming under MinTech, but he will know—I shall be very happy to send him details—of projects being sponsored in the North-East by our Department.

asked the Minister of Technology when he estimates that Tyneside will be converted to natural gas supplies.

The Northern Gas Board is planning to complete conversion of its whole area, including Tyneside, by 1976. Details of the programme for particular districts are announced by the board when they are sufficiently firm.

Would the hon. Gentleman give a general direction to the Northern Gas Board to exercise much greater care than hitherto when conversions are being carried out, and would he not agree that it would be of benefit to the industry and, indeed, the consumer if the boards themselves were to do the conversions rather than the fly-by-night private enterprises now doing the job?

No, I will not give a general direction, but if the hon. Member has any complaints about conversions I suggest he writes to the boards.

In the matter of gas supplies to the North-East, would my hon. Friend have a look at what happens when a pipe goes through a moor and the moor goes on fire down to a depth of several feet?

We will certainly look at that, but I have no first-hand experience of such an event.

asked the Minister of Technology if he will make a statement on the future of the Concorde aircraft project.

asked the Minister of Technology if he will make a statement on the Concorde project.

asked the Minister of Technology if he will make a statement on the future of Concorde.

asked the Minister of Technology if he will make a statement on the future of the Concorde programme.

asked the Minister of Technology if he will make a statement on the progress of the Concorde.

As I said in reply to my hon. Friend the Member for Woking (Mr. Onslow) on 6th July, development of Concorde is continuing as planned.—[Vol. 803, c. 300–1.]

Yes, but is the right hon. Gentleman aware that his answers last week were thought in many quarters to be decidedly evasive? Is he aware that in Bristol, at any rate, a firm answer on what his intentions are is awaited with great anxiety?

I thought my answers were very clear.

Since the meeting with M. Mondon, which will probably be in September, will decide the fate of Concorde, whether it should be cancelled or go forward, will the right hon. Gentleman, before this meeting, consult all the airlines which have placed these very tentative orders to make sure that he fully understands their disillusionment with the whole project?

I do not have that impression. With regard to my discussions with M. Mondon, I cannot anticipate the results.

Is the right hon. Gentleman's policy any different from that of his predecessor? Does he find the treaty which was signed by his predecessor the right hon. Member for Brighton, Pavilion (Mr. Amery) irrevocable?

I inherited the same problems. I am considering the solutions.

Would my right hon. Friend bear in mind the direct and indirect benefits upon industry of the continuation of this project? Will he undertake to consider the matter entirely on its merits?

I will consider the matter on its merits. It is a great project. I shall know rather more about how it is proceeding after flight tests have taken place in a few weeks.

Will the Minister bear in mind that the next few months will be particularly crucial for Concorde because matters like pay-load, range and price will be established and it is likely to receive firm orders from airlines during that period? Would he reassure the House that, in spite of some pessimistic suggestions made by hon. Gentlemen, it will not be prematurely cancelled and will be allowed to survive on its merits?

I am sure that those are considerations which will be borne in mind.

Will the right hon. Gentleman say what is the nature of the penalty to which we shall be liable if we reject the agreement with France?

I have not thought in those terms at all. I do not think there is any difficulty so far as that is concerned. We must wait for the flight tests at cruising speed before we can judge some of these matters which have arisen.

Could the Minister say when the present supersonic test flights up the west coast routes are likely to take place.

These flights are likely to take place in about six weeks.

asked the Minister of Technology whether he will make a statement on his negotiations with the French Government and aircraft industry on the future of Concorde.

No such negotiations have taken place.

Does the right hon. Gentleman agree that negotiations and a statement are urgently needed because rumours continue to grow all the time, even in official circles on the Continent, the latest suggestion being that even if the aircraft were given to the airlines, they could not afford the loss in operating them? Looking back over the whole saga of Concorde, is it not extraordinary that the Conservative Government, which negotiated the agreement, made no provision for a break clause?

I accept none of those assertions.

asked the Minister of Technology if he will issue a White Paper on the reorganisation of the electricity supply industry.

It is too early for me to say.

May I ask the hon. Gentleman not to forget the demands he made when in opposition for a White Paper on the reorganisation of the electricity supply industry? Would it not be reasonable to expect that a White Paper will now be issued?

I cannot commit myself immediately, but if we decide that legislation is necessary the hon. Gentleman can be assured that I shall look with a great deal of sympathy at the question of publishing a White Paper.

Will the hon. Gentleman bear in mind when making the assessment the words of his own Deputy Leader, the right hon. Gentleman the Member for Barnet (Mr. Maudling), who said that it would be impossible to give proper commercial freedom to the Central Electricity Generating Board unless it were given manufacturing powers?

I always bear in mind the words of my right hon. Friend.

asked the Minister of Technology (1) if he is satisfied that domestic demand for coal will be met in 1970; and what measures he will take to safeguard the position;

Figures of production and consumption are published weekly by the Department. It is for the National Coal Board to ensure that supplies are adequate to meet likely demand.

Is the Minister of State aware that that is a most unsatisfactory answer? Would he not agree that it is a matter of great concern that the consumption of coal is outstripping production? Is he not concerned that certain vested interests have used the situation, and will he as Minister try to explain the matter and seek to safeguard the miners who work in the industry?

I am concerned with the whole question of supplies of solid fuel for this winter, but the exact picture depends both on the extent of the demand and the success in increasing productivity.

asked the Minister of Technology if he will make a statement on the Investment Grant Scheme.

This is under consideration.

Is the Minister aware that the uncertainty which at present faces the industry is the greatest investment disincentive the Government could conceivably devise in that firms are not in a position to say whether for each £100 of plant purchased it will cost £100, £80 or £60? Will he end this uncertainty and in the meantime expand and say whether the honouring of existing commitments will apply to plans made for which no firm orders have been placed?

I dealt with this matter at some length in last Thursday's debate.

No.

Of course we appreciate the difficulties about uncertainty, but any industry or firm which feels in difficulty should get in touch with me.

Would my right hon. and learned Friend bear in mind that many hon. Members on this side of the House consider that industry should normally obtain its finance from the market and not from the Government? Would he consider the problem of the overlap by those firms which are at the moment considering capital schemes and obviously will wait before initiating these until a Government statement is made?

I am sure the State should be the last, and not the first, port of call. As for plans going ahead at present, there will, as I said on Thursday, have to be transitional arrangements.

Is the Minister aware that any change-over to a system of allowances will adversely affect small new companies which are not yet making a profit? Would he assure the House that there is no intention of changing the method of grant in regard to the Highlands and Islands Development Board?

These are matters which need time to consider before changing the whole system. We have made clear that we prefer a more flexible system of grants and prefer a system of tax reductions and tax allowances wherever possible.

Could my right hon. and learned Friend be more forthcoming about when he expects to be able to make this statement? Does he hope that it will substantially precede the announcement about public expenditure expected this autumn and will it be made before we rise for the Summer Recess?

As investment grants are costing something like £600 million a year, it will be very relevant to that study.

Could the Minister enlarge on what he described as transitional arrangements and give an assurance that a firm which now decides to develop and expand in a development area or elsewhere will enjoy the benefits of the investment grants under existing legislation until such time as the Government come forward with legislation to replace existing Statutes?

Firms can act under the present position until it is changed.

Will my right hon. Friend bear in mind that we in the North are looking to him to do better than the Labour Government did when they were in power? Could I also ask him not to pay too much attention to some of these southerners who do not know anything about our problems in the North?

I shall certainly do my best to avoid incurring my hon. Friend's displeasure.

asked the Minister of Technology if he will publish a White Paper explaining the difference between high, medium and low speed gas for domestic and industrial use.

No, Sir. My hon. Friend should ask the Chairman of the Gas Council for the information he requires.

If the truth is that the term "high-speed gas" has no valid meaning, will the Minister tell those who are responsible that it is inappropriate to use public money to promulgate a lie? Will he tell them to put the advertising in better hands than the hands of the phoney con men it has been in?

The question of advertising policy is a matter for the Chairman of the Gas Council.

asked the Minister of Technology if he will make a statement about the progress of smokeless zones in Greater London, with special reference to Ilford, and the outlook for supplies next winter of suitable fuel for converted fires.

asked the Minister of Technology what are his plans for ensuring an adequate supply of smokeless solid fuels for schools, other public buildings and domestic dwellings.

I hope to be able to make an early statement about the outlook for solid smokeless fuel supplies.

Since it was obvious that this was going to happen three years ago, how is it that no proper planning precautions were taken to ensure that smokeless fuels were available?

As my hon. Friend well knows, the new Government have only recently come into the position of responsibility, and our concern is to assess the position and make a statement as soon as possible.

Will the Minister of State when looking into the matter see whether something can be done to avoid the mistake made under the previous Administration, as, for example, in Dorset where the conversion of schools alone to oil or gas from solid fuel has cost no less than £180,000, interest upon which has to be borne by the ratepayers?

I will certainly have that point in mind. Conversion of appliances of this kind is one of the factors to be taken into account.

Will the hon. Gentleman bear in mind that much of the cost of these conversions will be met by the savings achieved by the new smokeless fuels which will replace the old smokeless fuels?

Yes, Sir.

asked the Minister of Technology, whether, in view of the critical conditions in the forthcoming winter in many smokeless zones as a result of inadequate supplies of smokeless fuel, he will approve, as a matter of urgency, a crash programme by the National Coal Board to increase opencast mining, particularly in South Wales, to produce larger supplies of anthracite.

Four anthracite sites have been authorised this year and another is being considered. I understand that the N.C.B. intends to apply for as many others as possible. These will be dealt with as a matter of urgency.

Will my hon. Friend say how long it will take before extra anthracite becomes available from these sites? Is he aware that many houses in Bolton, and probably elsewhere, have appliances which simply cannot burn anything but smokeless fuel or anthracite?

I am aware of the latter part of that question. Production from new sites will take place as soon as possible, but I am afraid that I do not have the exact date when we can expect to get it?

Are we still exporting smokeless fuel, or are stocks being built up for the forthcoming winter?

We are building up stocks. What is being exported is anthracite dust for manufacture into smokeless fuel briquettes, which are being imported.

asked the Minister of Technology if he will make a statement on the proposals for a BAC3-11 aircraft.

The examination of B.A.C.'s request for launching aid for this aircraft is continuing. I will make a statement as soon as possible.

Will the Minister bear in mind the great success of the B.A.C. series of civil aircraft? By going ahead with the BAC3-11, Britain would stay with the subsonic class of aircraft, and this has the support of many hon. Members on this side of the House.

Those are highly relevant considerations.

Does "as soon as possible" means before 24th July?

Before very long.

asked the Minister of Technology if he will make a statement about British participation in the European Launcher Development Organisation.

European launcher development is one of the matters to be discussed at the forthcoming European Space Conference on which the Government are considering the line to be taken by the United Kingdom delegation.

Will the Minister bear in mind the need for either a European or a British national space launcher, so that we do not have to rely entirely, as did the previous Administration, upon American launchers?

We shall have that factor in mind.

asked the Minister of Technology what proposals he has for altering the structure and work of the Government's research establishments; and if he will make a statement.

asked the Minister of Technology if he will publish a White Paper on his policy towards the Government Research Establishments.

We are considering the future of the Department's research establishments, in the light of the many constructive comments on the previous Administration's Green Paper. We will make a statement as soon as we have completed the review.

What is the Minister's time scale for consideration of these important questions and will he endeavour to make a statement before the Summer Recess?

I cannot tell the hon. Gentleman how long it will take, but it will not be possible to do this before the Summer Recess.

What plans have the Government to hive off sectors of public research establishments into private hands?

That is one aspect, but I cannot go further today than to say that we are reviewing the whole system.

Will the Minister also take into account the recommendations of the Report of the Select Committee on Science and Technology about defence research establishments?

Yes. This and many other factors which my hon. and gallant Friend might have raised are relevant to the total review.

asked the Minister of Technology if he will take steps to complete the reorganisation of the nuclear energy industry.

I am looking into the question of what further steps are necessary.

Is the right hon. Gentleman considering putting at rest the doubts in our nuclear energy industry about the future of the organisation, and what proposals has he for the public ownership and management of the nuclear fuel sector, on which a Bill was before the House when Parliament was dissolved?

The question of the reintroduction of the Atomic Energy Authority Bill is one of the matters under urgent consideration. We are considering the rest of the reorganisation of the Atomic Energy Authority in the light of the comments that have been made on the previous Administration's Green Paper.

Will the new Administration look again at the Report of the Select Committee on Science and Technology upon the reorganisation of the nuclear reactor industry, where the right hon. Gentleman will find many valuable suggestions?

It was indeed an excellent report and I will study it very carefully.

asked the Minister of Technology if he will refer wages and conditions of electricity supply workers to the National Board for Prices and Incomes.

No, Sir.

What contingency plans have the Government to become tough with the supply workers—as we were told during the General Election they would be—when they put in an autumn pay claim?

I do not think that arises from the original Question.

asked the Minister of Technology if he will make a statement on his proposals for the future of the textile industry with particular reference to the Imperial Chemical Industries bid for Carrington and Dewhurst and its eventual integration with Viyella.

I have no statement to make at the present time. Meanwhile I regard it as a matter for I.C.I. to decide whether or not it proceeds with its textile merger plans.

Does that philosophy of non-intervention extend to the textile industry? Is it intended that I.C.I. should be completely free, that all restraints should be removed, that there should be bids from any source, and that the restraints previously announced by my right hon. Friend the then Paymaster-General should be removed? If so, will the Minister come and explain his philosophy to the people of Lancashire?

I have accepted the view of the previous Administration. I.C.I. has not complained about the conditions which were laid down by the Paymaster-General in his statement of 25th March, 1970.

Does my right hon. and learned Friend accept—as I hope he does—for the other members of the industry, and particularly the other fibre producers, the rule that they are to be forbidden to get into the manufacturing of textiles?

I have received no proposals or representations about the standstill laid down by the previous Adminisration. I am, of course, ready to receive any such representations if anybody wishes to make them.

asked the Minister of Technology whether he will make a statement on the future of special allowances paid to redundant miners.

asked the Minister of Technology if he will make arrangements for the early introduction of a Coal Industry Bill and the continuance of the mineworkers redundancy payments scheme till 1974.

asked the Minister of Technology if he will introduce legislation to enable the British coal industry to maintain its position as the major source of fuel and power in this country.

As my right hon. and learned Friend said in the debate on 9th July, high priority is being given to our consideration of this matter.—[Vol. 803, c. 883.]

When will the Minister make up his mind at least on the general principles, and when will the minds of those whose three years of special payments are coming to an end and those who are shortly facing the possibility of redundancy be set at rest?

We are speeding this up as rapidly as possible. I am aware of the urgency of the situation, and I am anxious to meet the mineworkers' leaders, which I shall do later this week.

Is the hon. Gentleman aware of the concern in parts of the country about the solution to this problem, which is wanted earlier rather than later?

Yes, I am very alive to that.

Will a statement be made on this before the House rises? The Bill is ready, there is no preparatory work to be done, and all that is required is a decision by the Government that the mining industry, in view of its special difficulties, is entitled to receive help on the human aspects of change.

If it is at all possible I will make a statement before the House rises.

In reaching his decision, will my hon. Friend remember that, in addition to economic considerations, there are also social obligations?

It is that point which is causing me to give the matter such high priority.

asked the Minister of Technology (1) what steps he proposes to take to attract employers to North-East Kent;

asked the Minister of Technology if he will consider making East Kent a development area.

Whilst we are aware that the rate of unemployment in certain coastal towns in North-East Kent is relatively high, we are not convinced that development area incentives would be justified. The industrial development certificate control will be operated flexibly in this area and suitable new projects will be approved.

I am grateful to my hon. Friend for saying that new ideas will be considered. Will he bear in mind that the rate of unemployment in North-East Kent has been 6·5 per cent. for the last two years, and that there is a great deal of frustration and depression amongst the 11,500 people who have been continuously unemployed during that period?

We inherited a worrying situation in this part of Kent, and also a shortage of mobile industry. I think my hon. Friend will agree that we should steer the bulk of the mobile industry to development areas, although we shall operate the industrial development certificate control as flexibly as we can in this area so as to help wherever possible.

In view of the grudging way in which under the previous Administration industrial development certificates have been granted in this area, what criteria will the Minister apply in considering applications from East Kent?

Wherever there is an existing company which wants to expand, or a company which has close ties with the area and is by no means mobile, we shall make certain that an industrial development certificate is granted.

asked the Minister of Technology what percentage of aerospace industry exports in 1969 were projects initiated during the period 1965 to 1969.

It is impracticable to analyse from the Overseas Trade Accounts that percentage of aerospace industry exports in 1969 which resulted from projects initiated during the period 1965 to 1969. Broadly speaking, however, the length of time required for aerospace development projects to reach production is such that the percentage must be small.

Is my hon. Friend aware that what he has said represents a very small percentage? Can he say when the remainder of the projects were initiated?

By implication, my hon. Friend will realise that most current exports have their genesis in projects before the period referred to in his Question.

asked the Minister of Technology what is Her Majesty's Government's policy regarding the future of Merseyside as a development area; and if he will make a statement.

The Government will continue to treat Merseyside as a development area for as long as necessary.

In view of the fact that the hon. Gentleman says "as long as necessary", will he give a firm assurance that it will not be taken out of development area status, as it was by a previous Conservative Government, which led to a rapid increase in unemployment? Secondly, can we have an assurance that the aid to Merseyside will be as generous as it was under the previous Administration?

As I said, we will not change the development area status of Merseyside unless and until there is no need for it to continue. On the hon. Gentleman's latter point, we are considering the whole matter, and I am unable to say more at present.

Will my hon. Friend take note that what is wanted on Merseyside is a speeding up of communications, both across the Mersey and laterally, and getting the construction industry moving again, which it was not doing under the previous Administration?

We are conscious of the need to improve the infrastructure and the beneficial effect that this has upon areas like Merseyside.

asked the Minister of Technology what action he intends to take to ensure future employment in the shipbuilding industry on Merseyside; and if he will make a statement.

Future employment in shipbuilding on Merseyside depends on the maintenance there of a viable and competitive industry. This will depend on the efforts of all those employed there in shipbuilding.

In view of the fact that a viable and competitive industry was not forthcoming previously when we had to assist Cammell Laird, can we have a firm assurance that the arrangements of the previous Administration for Cammell Laird will be completely honoured by the hon. Gentleman's Government?

The arrangements are already in force, so the answer is "Yes".

In order to keep the expertise of the nuclear power team in Cammell Laird, would my hon. Friend consider helping to finance a prototype nuclear-powered merchant ship at some time?

As I said last week, we are considering the report which we have received on this subject, and we are not yet ready to make any statement.

Is the hon. Gentleman aware that, during the election campaign, specific pledges were made to Cammell Laird workers and were stated to have been made on behalf of the then Shadow Cabinet? Is the hon. Gentleman aware what those pledges were, and does he intend to implement them?

I am not aware what those pledges were. We have had no request for assistance from this company, and we have honoured the commitments entered into by the last Government.

asked the Minister of Technology if he will examine the question of upgrading Leith from intermediate development to full development area status; and what discussion and consultations he intends to undertake in this matter.

We are looking into the position of Edinburgh and Leith in relation to the Scottish Development Area.

Will the hon. Gentleman bear in mind that this is a matter of some urgency, that Leith is the only major port in Scotland which is not backed by a full development area to its landward side, that there is an urgent need for growing trade in Leith, and, lastly, that there is growing anxiety about the persistently high rate of unemployment in Leith?

We are considering this matter in accordance with our pledges during the election campaign. However, I am sure that the hon. Gentleman would agree that it would be better to get the policy right before starting to alter the boundaries.

It may have been accidental, but the hon. Gentleman has made a very important announcement, that he is prepared to look again at the boundaries of the development areas and intermediate areas. Will he confirm that he is ready to receive representations from other areas which have a claim to special status?

No. This applies only to Edinburgh and Leith. The Conservative Party made a pledge to re-examine the boundaries in Edinburgh and Leith, and we are doing that. It does not apply to any other part of the country.

asked the Minister of Technology if he will make an early statement on the level of Government assistance to the shipbuilding industry.

The Shipbuilding Industry Act 1967 provided for a capital injection into the industry of up to £20 million in grants and £32½ million in loans. It also enabled us to guarantee commercial loans up to a limit of £400 million outstanding at any one time for ships ordered by British shipowners from British yards. Shipbuilders are also eligible for 2 per cent. Shipbuilders Relief.

Will the hon. Gentleman ignore the advice given him by some of his hon. Friends that further aid to Upper Clyde Shipbuilders would be economic nonsense? Bearing in mind the thousands of people who depend on U.C.S. for their livelihood, will he do all that he can to ensure its future as a viable concern?

I am not aware of any request for assistance from Upper Clyde Shipbuilders.

asked the Minister of Technology if he will publish a White Paper on the future structure of the steel industry.

I am still studying the structure of the steel industry.

In view of the hon. Gentleman's pledges that he proposes to denationalise certain parts of the industry, we on this side of the House would certainly like to hear very quickly what his investment plans are, especially whether the £100 million which is likely to be invested by the British Steel Corporation over the next five years stands and whether we are still to expect an iron ore terminal on the Clyde Estuary?

We made it clear that we would wish to study the position of the industry as we found it on taking office.

Is there any subject on which the Government will be able to make up their mind, at least by the Summer Recess?

On this point, I would hope so.

asked the Minister of Technology whether he will seek powers to require the oil industry to declare publicly the actual average prices it charges industry for bulk supply orders by fuel and by area.

No, Sir.

Is the hon. Gentleman aware that the gas and electricity industries are made to provide this sort of information and that this puts them at a competitive disadvantage with respect to the oil industry? Will he reconsider his decision and act to remove what I am sure he will regard as an anomaly?

The circumstances of the industry are different. The great majority of gas and electricity consumers are charged on the basis of published standard tariffs, and average prices are, therefore, reasonably representative. The oil industry is made up of a large number of competing companies.

asked the Minister of Technology when he will complete his review of the future of the Industrial Reorganisation Corporation.

I cannot commit myself to a date at this stage.

I thank my right hon. and learned Friend for that reply. In the course of his review, will he look closely at the latest development by which, apparently, customers of the machine tool industry are to receive additional doles of taxpayers' money on condition that they are spent on buying machine tools from companies which have already fallen into the I.R.C. maw?

I will look into that point.

Will the right hon. and learned Gentleman publish the text of the general direction which he gave the I.R.C., which he announced last week, telling it not to act without consultation with him?

It was not necessary to give a general direction although, as the right hon. Gentleman knows, I have power to do so. We came to an agreement.

asked the Minister of Technology if he will publish details of the assistance given by the Industrial Reorganisation Corporation to firms in Scotland since its formation.

I have arranged for such information as is available to be published in the OFFICIAL REPORT. The hon. Member may also find it useful to refer to the Minutes of Evidence of the Select Committee on Scottish Affairs 1968–69. (House of Commons Paper No. 397.)

Will the Minister admit that the evidence indicates that the Industrial Reorganisation Corporation has been a useful and beneficial device to restructure industry in Scotland? Will the right hon. and learned Gentleman allow the corporation to go on with its job rather than veto proposals put to him by it?

As I said, the future of the I.R.C. is under consideration. A lot of the work that it has done has certainly proved beneficial in Scotland and elsewhere.

asked the Minister of Technology if he will now make public the grounds on which he will judge mergers proposed to him by the Industrial Reorganisation Corporation.

Until the review of I.R.C.'s future has been completed, I shall consider each new project proposed by I.R.C. on its merits. My concern will be to ensure that intervention, and the use of public funds, is justified in each case.

If the right hon. Gentleman will not give the views which he put to the I.R.C. during the discussions, may I ask whether he will make public the views of the I.R.C. to him?

We reached mutual agreement that the obligations of the I.R.C., the commitments that it had already entered into, would be honoured and that thereafter it would consult me about fresh proposals.

Will my right hon. Friend bear in mind that when the I.R.C. was set up it was assumed that mergers would be its main rôle? But since then it seems to have crept into operating more as a merchant bank than as a merger promoter.

I agree that mergers are primarily the responsibility of my right hon. Friend the Secretary of State for Employment and Productivity.

Are we to understand from what the Minister said that every decision by the I.R.C. is now to be the subject of Ministerial accountability to the House and, thus, the independence of the I.R.C., provided for by Statute, is to be replaced by Ministerial responsibility for everything that it does?

The statutory responsibility remains as laid down in the Act.

asked the Minister of Technology if he will take steps to arrange for the siting of storage depots for smokeless and other fuels in areas where coal fired central heating exists on a large scale; and if he will make a statement.

This is a matter for the trade.

Is the hon. Gentleman aware that the Government cannot duck their responsibility in this matter? While the trade has its problems to solve in relation to the coming winter, the facilities for tackling the problems must be provided by the Government. Is he further aware that local authorities in many parts of the country have provided housing schemes with coal-fired central heating, and that they need some assistance and protection in this matter?

I am looking into the whole position, and on the question of certain qualities of solid fuels, I shall be making a statement later.

asked the Minister of Technology if he will make a statement regarding the policy of Her Majesty's Government on incentives to industrial investment.

I shall make a statement as soon as practicable.

Is my right hon. and learned Friend aware that we in the development areas are not well served by investment incentives to investments which would occur anyway, by investment incentives to investments which will never produce a profit, and by investment incentives to investments which will never produce jobs commensurate with the scale of the incentives involved, and that we have had far too much of all three in the last five years?

I accept that those are relevant considerations.

is the Minister aware that the statements of the hon. Member for South Angus (Mr. Bruce-Gardyne) have jeopardised major industrial developments in the Highlands, that as early as March of this year Grampian Chemicals was put in difficulty in raising finance for an important development in the Moray Firth area which would have offered a considerable number of jobs, and that the uncertainty was due to doubts about the present Government's policy on investment grants? How long will he wait and continue to jeopardise developments in Scotland?

I dealt with this matter at some length last Thursday. I will certainly look into any particular case which is causing anxiety to hon. Members.

asked the Minister of Technology what orders have been received for Blue Streak this year; and whether he will make a statement about the future of this launcher.

No orders for additional Blue Streak vehicles have been received this year. The future of this launcher depends on the outcome of discussions on a possible production programme for Europa I and II vehicles which are due to take place at the forthcoming European Space Conference.

In the meantime, may I assume that production facilities are being kept in being?

Yes. The hon. Gentleman is right in his assumption.

Is Europa III being discussed, too?

My hon. Friend will know the result of the action of the previous Government. We are not now involved in Europa III.

asked the Minister of Technology what proposals for civilian vertical take-off aircraft have been made to his Department; what progress has been made with their evaluation; and whether he will make a statement.

Proposals have been made by Hawker Siddeley and by Westland. Hawker Siddeley's proposals are based on direct lift by jet engine, or alternatively by a rotor which is stowed in forward flight; Westland's are based on a convertible rotor.

Shall we get a statement on this matter from the Government in the autumn?