§ Mr. James Johnsonasked the Secretary of State for Industry if he will give details of the new product and process development scheme for manufacturing industry.
§ Mr. VarleyThe product and process development scheme, which is now open for applications, consolidates and extends the support available under the Science and Technology Act 1965 for the development of new products and processes by manufacturing industry. £20 million is being made available for the scheme in the first instance. Assistance will be available to firms for development costs from the design stage up to the point of commercial production. The emphasis will be on bringing new products and processes to the market.
Projects from any sector of manufacturing industry will be eligible for consideration, though the main thrust of the scheme will be towards mechanical and electrical engineering. Assistance will be given on a selective basis; applications will be considered in their industrial context and against the aims of the Government's industrial strategy. Assistance will normally take the form of a grant of up to 25 per cent. of qualifying costs or, as an alternative, a shared cost contract where the Government will provide up to 50 per cent. of qualifying costs in return for a levy on commercial sales. Pre-production order support will also be available under the scheme.
324WThe criteria for assistance under the product and processes development scheme will include the following:
- (a) the project or programme must be likely to be successful and to contribute significantly to strengthening the company's capability;
- (b) the project or programme would not go ahead within a reasonable time scale without the assistance;
- (c) projects or programme will normally be not less than £25,000 or more than £1 million.