Industrial Research Freed from Taxation •
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'THIS war has contributed many proofs that 1 British designers, engineers, chemists and manufacturers are fully capable of holding their own against those of any other country in the • world. To enable them to continue with their good work in the post-war years, however, they must be helped to the fullest extent possible by extensive research work. .
.Unfortunately, such activity is apt to be expensive, and is, therefore, far too often limited to either the largest concerns or to joint efforts from a particular industry as a whole.
There are really two classes of research—that concerned with the markets, to discover what is required for home consumption and by those who are potential buyers overseas and how these demands can be met, and technical research involving materials, their qualities, fabrication, treatment, etc., and where it is best to employ them.
To an extent, which may be large 'or small according to capacity, every producer must carry out investigations which come into one or both these categories, and much of the work forms part of the ordinary manufacturing and trade expenses; but where technical research has to be conducted constantly and over a long period before any substantial return can be expected, the Government is to provide special facilities in the way of finance. This will not be by way of subsidies, but through the medium of a deduction of capital expenditure over five years from profits for income tax purposes. Current research expenditure on wages, materials, repairs, etc., will also be allowed, as and when incurred by a trading concern.
Many of those qualified to express their opinions. on this matter believe that the -Nation will, in the end, reap the benefit of such consideration. It will certainly help at a time when all the nations, in so far as they be permitted to do so, will compete in the markets of the world. It will also assist in bringing into practical use, after the war, the many developments which have taken place during it, and thus devote to the benefits of peaceful trading discoveries which have been made in the search for death-dealing armaments.