HC Deb 15 July 1999 vol 335 cc547-9
1. Mrs. Linda Gilroy (Plymouth, Sutton)

What steps his Department is taking to encourage innovation in engineering. [900061]

The Minister for Energy and Industry (Mr. John Battle)

Engineering companies are eligible for a wide range of Government-sponsored schemes designed to stimulate innovation in industry. There has been a 20 per cent. increase in the innovation budget spread over three years, the purpose being to promote and foster innovation in engineering.

Mrs. Gilroy

Will my hon. Friend acknowledge and encourage the sort of awards that the Design Council and the Royal Academy of Engineering make? Can I draw his attention to a remarkable product made in Plymouth by British Aerospace—the silicon gyroscope, which received the Design Council award and is on the shortlist for the McRobert award?

Mr. Battle

Yes, I want to acknowledge all efforts to promote excellence and innovation in engineering. The Plymouth-based British Aerospace Systems has come up with a highly innovative silicon gyroscope, which is one of the four finalists for that prestigious Royal Academy of Engineering award. The device—which has been referred to as the transistor of the 21st century—will be used in cars, for example, to improve anti-lock braking systems and will improve safety and vehicle performance. That links in with the Government's priorities to build and blend in the cleaner, leaner, safer and smarter vehicles of the 21st century. That is what the Government and the people want.

Mr. David Chidgey (Eastleigh)

I join the Minister in his congratulations for British technology. However, is he aware that, over the past 12 months, this country has fallen from fourth place in global competitiveness to eighth place? Studies have shown that the reasons are a combination of the strong pound, new business regulations and an underlying weakness in science and technology. I know that the Minister personally feels this way, but will he make a commitment, on behalf of the Government, to provide some joined-up Government in tackling those problems so we can nurture British industry?

Mr. Battle

I wonder where the hon. Gentleman has been. Of course there is a challenge in global competitiveness, but where was he when we boosted the science, engineering and technology budget by £1.4 billion to underpin basic research? We have £25 million for the science enterprise challenge and £20 million for the reach out fund, as well as funds for the SMART schemes and the foresight-link awards to foster engineering. We believe that we will address the shortfall not by doing things for industry, but by putting in schemes to underpin the innovative approach to competitiveness to ensure that our engineers make world-class products and can win their way forward.

Mr. Michael Clapham (Barnsley, West and Penistone)

Does my hon. Friend intend to have discussions with his colleagues at the Department of the Environment, Transport and the Regions regarding regional development agencies and the way in which they might be encouraged to promote innovation in engineering, particularly by developing mechanisms to transfer technology from the universities and colleges into industry?

Mr. Battle

My hon. Friend makes a good point. I am encouraged that the RDAs are already drawing up innovation strategies at the regional level. For example, in our region of Yorkshire, the RDA has drawn up an innovation strategy, and the same is true in the west midlands. We look for the template throughout the country, and then our schemes can be tailored in to help encourage the technology transfer to which my hon. Friend refers.

Mr. John Bercow (Buckingham)

What does the Minister of State say to the director of policy at the Engineering Employers Federation, who insists that UK-based companies will shift their production facilities to other countries or will simply close down if he and his right hon. and hon. Friends persist with their plans for an energy tax? Now it is clear that that tax will discriminate against high value-added, capital-intensive firms, is certain to cost jobs and will undermine British competitiveness, why does not the hon. Gentleman cease just to be a carpet on which Treasury Ministers trample and instead go to his right hon. Friend the Chancellor of the Exchequer and tell him to withdraw this stupid proposal?

Mr. Battle

I seem to recall that the Conservative party imposed stupid proposals with no consultation in their Budgets. This is the first time that we have had two years of consultation. The consultation document has been put out, and there are sector meetings with the Deputy Prime Minister across Departments, including the Treasury and DTI, to work through the proposals. It has been encouraging that employers in all sectors have said that we need to do something about climate degradation and that they will come in to talk about practical measures to address it. Those details are being discussed.

Of course the measure will have different impacts on different sites, companies and sectors. That is the whole point of moving forward to a negotiated agreement. That is in stark contrast to the previous Government, who simply imposed taxes on business without a hint of consultation at any point.

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