Trade, Exports, Innovation and Productivity

Debate between Rebecca Pow and Roger Mullin

Wednesday 13th January 2016 Commons Chamber

[Roger Mullin]

One alternative would be to base the centre in Dundee. That would solve the hon. Gentleman’s problem.

In addition to university research, there is business research. The need to encourage business investment has been mentioned, particularly in manufacturing, where we have fallen behind. I mentioned earlier the UK spend on research and development at 1.7% of GDP. We all know our manufacturing sector faces some real challenges. North Korea’s manufacturing sector is doing pretty well by comparison with many countries in the world. Its GDP spend is 4%. [Hon. Members: “North Korea?”] Sorry, South Korea.

[Rebecca Pow]

I am interested in what the hon. Gentleman is saying. The Government are offering many budgets and grants and I will highlight one, which is the agri-tech budget. That is seedcorn money for linking agricultural projects with business. In my constituency, for example, we have a wonderful clothmaker, Fox Brothers, which has received money to do research with the local agricultural college to come up with the right wool on the right sheep to produce beautiful clothes. That will help business, and perhaps the Scottish might learn from it, as I know they also have a lot of sheep.

[Roger Mullin]

I thank the hon. Lady for that.

I am not denying—nobody could accuse me of doing so—that the UK Government have been spending on research and development. My argument is that given the future challenges that we face, we are potentially lagging behind nations that will be our major competitors in the future. I am not denying what the hon. Lady says.

Earlier I gave the Minister an incomplete quote from the Medical Research Council on the problem of moving from grants to loans. The full quote is:

“Converting grants to loans may mean that existing schemes such as the Biomedical Catalyst—which has been well received in the sector, supporting 180 business-led research projects and leveraging over £100 million in private match-funding over the course of three years—may not continue in their existing form.”

We have real challenges that need to be faced.