HC Deb 21 July 1986 vol 102 cc13-4W
Mr. Andrew F. Bennett

asked the Secretary of State for Trade and Industry if he will give information available to him on the financial support schemes available for EUREKA projects in each of the EUREKA member states.

Mr. Pattie

EUREKA is not a funding mechanism, and public finance for EUREKA projects is a matter for individual national Governments. The available information on schemes in EUREKA member states is as follows:

Austria 1. Three funds are used to finance international projects, one of which—for the promotion and application of new technologies — would apply for EUREKA projects.

Belgium 2. Funding from existing schemes is available for EUREKA projects.

Denmark 3. Under existing schemes, loans of up to 50 per cent. are available for R and D projects (including EUREKA projects). Additional funds have been made available in 1986 for international R and D projects.

France 4. Within the budgets of the research, industry and PTT Ministers, funds have been allocated for EUREKA projects. The level of grants is up to 50 per cent., depending on the technical and commercial risk involved. In addition to the Ministries' budgets, the industrial organisation fund offers loans.

Germany 5. The normal arrangements for research funding apply to EUREKA projects, and funds have recently been earmarked for EUREKA. In sectors of major public responsibility, such as health, or environmental protection, public funding covers a significant share of the relevant research expenditure. For industrial projects funding can be provided for long-term and high risk R & D activities. Here, the Government contribute up to 50 per cent. of the relevant expenditure. Finance of up to 100 per cent. is available for public research institutes and universities from BMFT.

Finland 6. There is no special fund for EUREKA. Grants of up to 50 per cent. and loans of up to 75 per cent. may be available under existing schemes. In the case of large-scale university or research institute participation funding may be higher.

Greece 7. Funding is available from existing schemes. Loans for venture capital are under consideration.

Ireland 8. There is no special EUREKA fund at present. Grants of up to 50 per cent. are available from existing schemes.

Italy 9. Funding is available from existing schemes.

Luxembourg 10. There is no special EUREKA fund, nor are EUREKA projects accorded special treatment. Normal levels of funding would not exceed 50 per cent. The 50 per cent. is split so that up to 25 per cent. is provided through a subsidy, half of which is repayable in case of success, and up to 25 per cent. through a loan from the National Credit and Investment Corporation. In the case of feasibility studies, however, 50 per cent. through subsidy alone can be available.

Netherlands 11. Funding of projects is available from existing schemes. For 1986, however, a separate fund is available for feasibility studies.

Norway 12. For 1986, Norway has set aside special funds for industrial EUREKA projects.

Portugal 13. In 1986 a special EUREKA fund has been set aside. In addition, the Portuguese Development Bank has opened a special credit line to support innovative schemes, including those under EUREKA.

Spain 14. Under existing schemes loans at 7 to 11 per cent. are negotiated on a case by case basis. Interest and capital repayments are made when projects become profitable. The loans vary from 50 to 70 per cent.

Sweden 15. There is no special fund for EUREKA projects, nor are they given special preference. Current schemes may provide loans of up to 50 per cent. which attract nominal interest rates and are to be repaid if, and when, an individual project is successfully carried through. There is the possibility of tax credits under certain programmes.

Switzerland 16. There are no specific funds for EUREKA. Present schemes offer loans of up to 50 per cent.

Turkey 17. Turkey does not have special public funding arrangements for EUREKA projects, but the Government are considering the establishment of a special fund for supporting projects (national and international, including EUREKA) with high technology content. The Turkish Scientific and Technical Research Council gives grants to research institutes and individuals for R and D projects.

United Kingdom 18. The position of the United Kingdom is described in my reply to the hon. Gentleman's earlier question of today's date.