HC Deb 06 August 1976 vol 916 cc1057-9W
Mr. Newton

asked the Secretary of State for Defence how many proposals for support of projects by firms outside the direct coverage of the Microcircuit Development Scheme have come forward from the firms directly involved in the scheme; how many have been accepted; and at what cost.

Mr. Duffy

It is an essential feature of the Ministry of Defence scheme that all proposals by the four semi-conductor firms within the scheme for support should be put forward in conjunction with equipment firms in view of the desirability that equipment contractors should be closely associated with the developments proposed at the earlier stage. The total cost of assistance provided for proposals approved within the scheme has been given in answer to another question by the hon. Member.

Mr. Newton

asked the Secretary of State for Defence if he will state in respect of his Department's Microcircuit Development Scheme how many firms are eligible for support under the scheme; how many have received such support; which they are; and how much each has received.

Mr. Duffy

Four firms are eligible for support of which three—GEC, Plessey and Ferranti—have so far put forward proposals which have received support. It would not be proper to publish the value of the financial assistance which each has received.

Mr. Newton

asked the Secretary of State for Defence if he will state in respect of his Department's Microcircuit Development Scheme how many projects have been supported under the scheme; how many new circuits have resulted; and what is the value of sales of such circuits.

Mr. Duffy

20 projects have been approved under the scheme. As a result four circuits have been developed and a further 24 are under development. Since the scheme is still at an early stage no sales have yet resulted but substantial sales are foreseen.

Mr. Newton

asked the Secretary of State for Defence if he will state in respect of his Department's Microcircuit Development Scheme what export orders have been obtained, or are expected to be obtained, in respect of developments wholly or partly financed under the scheme.

Mr. Duffy

No export orders have yet been received but substantial exports for devices developed or under development are expected.

Mr. Newton

asked the Secretary of State for Defence if he will state in respect of his Department's Microcircuit Development Scheme what import-saving has resulted, or is expected to result, from developments wholly or partly financed under the scheme.

Mr. Duffy

Import saving is not a prime objective of the scheme, but the development of special microcircuits by United Kingdom industry for defence equipment will improve the competitiveness of British equipment which, it is hoped, will reduce the need for overseas purchases.

Mr. Newton

asked the Secretary of State for Defence if he will state in respect of his Department's Microcircuit Development Scheme the present terms of reference of the scheme; and whether there have been any changes in these terms of reference or their application, since the scheme was announced in 1972.

Mr. Duffy

The aim of the Ministry of Defence's special microcircuit development scheme is, as announced to industry in July 1973, to help to build up a United Kingdom capability for the development of integrated circuits specially designed for potential defence applications thereby improving the cost-effectiveness and performance of a wide range of defence equipment.

Mr. Newton

asked the Secretary of State for Defence if he will state in respect of his Department's Microcircuit Development Scheme the total of public funds available under the scheme; how much has been allocated; and how much is the subject of current applications for support.

Mr. Duffy

When the scheme was announced in 1973 it was made clear that the sums to be spent for this purpose would depend both on the proposals put forward and on the overall level of resources available within the defence budget. In the three years 1973–74, 1974–75 and 1975–76 a total of £770,000 was spent by the Ministry of Defence under the scheme. For the current financial year 1976–77 expenditure of £356,000 has so far been approved and projects involving a further £65,000 assistance are currently under consideration.