§ Mr. Madden
asked the Secretary of State for Industry what are the main criteria which are taken into account in making recommendations for the Queen's Awards to Industry to individual firms; and if he will give details of how export performance is judged.
§ Mr. Deakins
I have been asked to reply.
The criteria are those set out in paragraph 35 of the Report of the 1970 Review Committee:
VII. The Criteria for the Award
35. The 1965 Committee provided for a single Award to Industry, which would be given for outstanding achievement either in exports or in technology or in a combination of both. We agree with the concept of a single Award, and recommend that the basis for qualification should be achievement in respect of the following criteria:
- (i) A substantial and sustained increase in export earnings to a level which is outstanding for the products or services concerned and for the size of the applicant unit's operations. Account will be taken of any special market factors described in the application. Applicants for the Award will be expected to demonstrate the basis of the achievement (e.g. improved marketing organisation or new initiative to cater for export markets) and this will be taken into consideration. Export earnings considered will include receipts by the applicant unit in this country from its exports of goods produced in this country, and its provision of services to non-residents, after deduction therefrom of overseas expenses incurred other than marketing expenses. Income by profits (after overseas tax) remitted to this country from the applicant unit's direct investments in its overseas branches, subsidiaries or associates in the same general line of business will be taken into account, but not recepits by profits on overseas loans or credit.
- (ii) A significant advance, leading to increased efficiency, in the application of technology to a production or development process in British industry or the production for sale of goods which incorporate new and advanced technological qualities.
Export performance is judged, by the advisory committee to the Prime Minister, in accordance with the criteria and the guidance given elsewhere in the report. In particular, credit is given for the current sustained level of the applicant unit's exports and recent substantial in- 432W crease is looked for; the applicant's export achievement is assessed over a three year period, credit being given for the increase between Year 1 and Year 2 to the extent that the new level is maintained in Year 3; additional credit is given for further growth between Year 2 and Year 3 but at a lower rate.