§ Mr. Allen McKayasked the Secretary of State for Trade and Industry (1) if he will introduce a regionally preferential system of high tech grants to encourage the development of high tech-manufacturing firms in the assisted regions;
(2) what are the reasons for the difference in the level of grants under the support for innovation programme to the south-east region and the Yorkshire and Humberside region;
(3) why Yorkshire and Humberside region has not received any payment of grant under the micro electronics industry support programme, the fibre optics, and the flexible manufacturing support for innovation schemes;
(4) if he will substantially increase the level of assistance to Yorkshire and Humberside under the support for innovation schemes.
§ Mr. TrippierThe Department's programme of support for innovation operates nationwide. The Department responds to applications submitted to it and grants are offered to projects that meet the Department's criteria. Firms in Yorkshire and Humberside are as eligible as firms in other regions to apply for the assistance available.
Regional variations in the numbers of grants offered reflect variations in the numbers of suitable applications received. Between May 1982 and March 1985 the South East region accounted for 43 per cent. of the applications received and 43 per cent. of the offers made. The equivalent figures for Yorkshire and Humberside were 7 per cent. and 8 per cent. respectively.
As at 31 March 1985 no applications had been received from Yorkshire and Humberside under the first microelectronics support programme and only one under the second stage, subsequently withdrawn. £1.1 million had been offered to firms in Yorkshire and Humberside to support fibre optics projects and payments of £727,000 had been made. £4.4 million had been offered to support flexible manufacturing systems and robotics projects in Yorkshire and Humberside and payments of £955,000 had been made.
The long-term aim of the Department's support for innovation is that of wealth creation. To maximise this aspect it is important to support those projects which offer the best rate of return to the country. This can only be done on a national basis and accordingly I have no plans to introduce a regionally preferential system.