HL Deb 20 March 1985 vol 461 cc541-2
Lord Rodney

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what proportion of the assistance granted under the microelectronics application programme, since it was established in 1979, has been given to firms employing fewer than 200 people.

Lord Brabazon of Tara

My Lords, under the microelectronics application project, 64 per cent. of grants for development projects by number, and 53 per cent. in money terms, have gone to firms with fewer than 200 employees. Of companies receiving grants for feasibility studies, I estimate that about two-thirds, in both number and cash terms, are of the size specified. Training and awareness activities under this project are primarily aimed at smaller firms, and the proportion by which these have benefited, while not separately identifiable, is likely to be substantial.

Lord Rodney

My Lords, I should like to thank my noble friend for that encouraging reply. Will he confirm that once the present review is complete, high priority will continue to be given to the MAP scheme with particular emphasis on self-help from firms to introduce microelectronics into their products and their manufacturing processes?

Lord Brabazon of Tara

My Lords, my honourable friend the Minister for Information Technology announced a review of Government support for innovation schemes in another place on 12th November. The microelectronics application project is affected by that, and I cannot anticipate the outcome. However, an announcement will be made about it very shortly. The Government regard the encouragement of the application of microelectronics as a valuable part of the overall programme. I can certainly say that we shall continue to treat it as such.

Lord Bruce of Donington

My Lords, can the noble Lord say whether the total amount of Government assistance expressed in money terms was greater or less than the £150 million that the rescue of the lame duck Johnson Matthey cost?

Lord Brabazon of Tara

My Lords, I do not think that the comparison really has much to do with the Question which is on the Order Paper.

Lord Orr-Ewing

My Lords, is my noble friend aware that Germany is spending about twice as much as we are spending in Government help to this industry and to the component industry that serves it, and that France is spending over three times as much as we are injecting into this industry? Should we not therefore increase our assistance so that we can compete with those two commercial competitors?

Lord Brabazon of Tara

My Lords, I was not aware of the comparative figures for Germany and France. However, I can tell my noble friend that, so far as the number of United Kingdom manufacturing firms employing microelectronics is concerned, we compare very favourably with both those countries. The most recent figures, relating to 1983, show that in this country 47 per cent. do so compared with 51 per cent. in West Germany and 38 per cent. in France. My noble friend will have to await the outcome of the announcement which I mentioned earlier.

Lord Glenamara

My Lords, can the noble Lord say anything about the regional destination of these grants? How much, for example, has gone to the North-East of England where unemployment is very much higher than anywhere else in the country?

Lord Brabazon of Tara

My Lords, I have no figures for the grants on a regional basis. I know that courses, seminars and training take place all over the country at all times. As to the use of microelectronic processes, the figures for the North are quite encouraging. Between 1981 and 1983, the figure for firms using this application has risen from 44 per cent. to 71 per cent.

Lord Bruce of Donington

My Lords, as the noble Lord considers that my first supplementary question was irrelevant, perhaps he will kindly inform the House of the total amount of the expenditure under this head and so enable your Lordships to judge the relevancy of that supplementary question.

Lord Brabazon of Tara

Indeed, my Lords. Current spending runs at about £14 million a year.

Lord Diamond

My Lords, will the noble Lord say whether the assistance that is given includes assistance towards the type of structure of the employing bodies? I have in mind, for example, assistance towards encouraging some co-operative form of ownership and management—I include workers' co-operatives—of small businesses of this kind.

Lord Brabazon of Tara

My Lords, I do not think that the scheme specifically aims at any kind of small business, co-operative, private or whatever. I do not think that recipients are specified in that way.

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