§ Mr. Tom kingasked the Secretary of State for Industry if he will list in the 562W Official Report the recommendations for action by government made in the NEDO working sector report for the machine tools industry together with details of the action taken by government to implement those recommendations.
Mr. Alan Williams,pursuant to his reple [Official Report, 15th November 1976; Vol. 919, c. 828–30], gave the following information:
The following is a summary of the recommendations for the Government contained in the report by the NEDC Sector Working Party on Machine Tools and the action taken to implement them.
Counter-cyclical measures recommendation.—The Machine Tools Economic Development Committee's proposals for an investment reserve scheme, under examination by a working party of the NEDC Committee on Finance for Investment, call for substantial incentives to shift the timing of investment. In addition stockbuilding should be considered in future recessions on the lines of the present facility of the National Enterprise Board.
Action.—The report by the working party is under consideration by the Departments concerned. The recommendation on stockbuilding has been made known to the National Enterprise Board.
Insurance cover for bid and performance bonds. Recommendation.—Substantial relaxation of existing criteria limiting the support available from ECGD, in particular through the reduction in the minimum contract value to £50,000 or less and through cover to sub-contractors, supplying direct exports.
Action.—This recommendation was drawn to the attention of ECGD and considered. Relaxations in the criteria for performance bond support were announced on 3rd November.
The Industry Act Scheme for machine tools. Recommendation.—Operation of the scheme should place emphasis on encouraging the development of new and improved machines with high added-value potential; further investment by companies already producing high value-added machine; re-alignment of companies' products towards those with growth potential; the transfer of products or the merging of business between companies where this seemed likely to improve product specialisation without loss of technology or goodwill.
Action.—These recommendations have been noted for implementation as opportunity arises.
User-supplier collaboration. Recommendation.—Engineering companies controlled by the NEB should be encouraged to make known 563W early to the machine tools industry appropriate details of their investment plans, and the same principle should be borne in mind in the operation of planning agreements with engineering companies.
564WAction.—The industry's need for early information on investment plans has been drawn to the attention of the NEB and of other bodies in the public section concerned with the purchase of machine tools.