Eureka (Hansard, 10 February 1992)

§ Mr. Dalyell
To ask the Secretary of State for Trade and Industry what action he is taking to implement the agreements on Eureka worked out at Helsinki in 1991.

§ Mr. Leigh
The United Kingdom is actively involved in the Eureka high-level group, which is responsible for the implementation of the agreements worked out at The Hague in 1991. Current major issues under discussion are the new medium-term plan, strategic projects, interaction between EC research and development and Eureka, and new members. My noble Friend the Under Secretary of State for Industry and Technology and other European Ministers will review the progress made at the Finnish ministerial conference, which will be held in Tampere, Finland in May 1992.

§ Mr. Dalyell
To ask the Secretary of State for Trade and Industry what action he is taking to involve small firms in the Eureka project.

§ Mr. Leigh
Participation in Eureka projects is a matter for individual companies, but the DTI offers preferential rates of funding to small firms and is constantly improving the flow of information to enable them to consider the Eureka option.

§ Mr. Dalyell
To ask the Secretary of State for Trade and Industry what consultations he is having with the CBI on framework programmes for Eureka.

§ Mr. Leigh
My Department maintains good contacts with the CBI on European R and D issues. Over recent months, senior departmental officials have been involved in discussions with the CBI on the EC's framework programme for R and D—for example at the round-table meeting organised by the CBI in September of last year.

§ Mr. Dalyell
To ask the Secretary of State for Trade and Industry what help he is giving to British Industry by providing case studies on Eureka.

§ Mr. Leigh
Twelve case studies have just been published to illustrate the benefits of Eureka collaboration to potential project participants in the United Kingdom. The case studies will be primarily targeted at United Kingdom industry to enable them to consider the Eureka mechanism in developing their own European and world market strategies.

§ Mr. Dalyell
To ask the Secretary of State for Trade and Industry what information he is providing to British firms about potential partners across Europe for Eureka projects.

§ Mr. Leigh
The main promotional tool for Eureka in the United Kingdom is the Eureka handbook which is produced by the DTI's Eureka unit. The handbook contains details of the Eureka database in Brussels, which can be used as a contact mechanism for potential partners, and of DTI feasibility studies which can be used for partner search activities.
Also, through the use of consultancies, the DTI provides information to United Kingdom industry on Eureka in general as well as details of European partnering and marriage broking events in Europe aimed at generating Eureka projects.
356W

§ Mr. Dalyell
To ask the Secretary of State for Trade and Industry what encouragement he is giving to British industry to back large strategic projects in relation to Eureka.

§ Mr. Leigh
In some cases, the DTI actively encourages United Kingdom industry to participate in large strategic projects by holding workshops, and launching targeted consultancy activities and mailshots. More generally, the DTI's Eureka unit is constantly improving the flow of information to United Kingdom firms to enable them to consider the possible role of the Eureka mechanism in developing their own European and world market strategies.

§ Mr. Dalyell
To ask the Secretary of State for Trade and Industry what help he is giving to British industry in clarifying the start-up procedures for the Eureka project.

§ Mr. Leigh
The Eureka unit has produced a handbook, which details how Eureka works and summarises the process of seeking Eureka status and Government support for a project. Information on Eureka and copies of the handbook are available from the Eureka inquiry point.
Staff in the Eureka unit regularly give presentations to industry covering the start-up processes in detail, while project officers from DTI line divisions give advice to companies on the specifics of Government grants when sought.
Line divisions also run consultancies in their own areas of policy responsibility. This activity disseminates information on Eureka to companies having no prior knowledge of the Eureka initiative, in order to help them participate in new Eureka projects.

§ Mr. Dalyell
To ask the Secretary of State for Trade and Industry what consideration he is giving to the conditions for the withdrawal of the Eureka grant if a project does not perform well over a period of years.

§ Mr. Leigh
The assistance the Department gives to Eureka projects is governed by standard conditions.
While the Department, in supporting projects, recognises the inherent financial and technical risks involved in pan-European collaboration, my right hon. Friend the Secretary of State may, under the terms of the Department's offer letter, terminate payment of grant, and, if appropriate, reclaim grant already paid, if certain specified conditions are not met.
Circumstances that might trigger withdrawal of grant include:

(i) that the future of the project is in jeopardy;

(ii) that in the opinion of the Secretary of State progress towards completion of the project is unsatisfactory.

Instances of withdrawal of Eureka grant are rare.
The matter of funding for United Kingdom firms participating in Eureka projects is quite distinct from the issue of Eureka status for projects. Introducing a mechanism for withdrawal of such status from projects which do not perform as expected, was one recommendation of the international Eureka assessment panel which reported last year; it is being pursued in the high-level group of representatives from Eureka countries.

§ Mr. Dalyell
To ask the Secretary of State for Trade and Industry what plans he has to help management resources in small companies bidding to participate in European and Eureka projects.

§ Mr. Leigh
There are no immediate plans to give additional help to small companies in this way.
357W
The DTI's enterprise initiative currently offers consultancy advice to small companies on making better use of technology, and advice on participation in Eureka projects is always readily available from the Eureka unit, DTI line divisions and regional offices.
Financially, small and medium-sized companies may be eligible for 50 per cent. funding for a pre-Eureka feasibility study. In recognition of the higher technical and commercial risks associated with European collaboration, the United Kingdom Government can offer a higher overall grant rate to small and medium-sized enterprises for participation in a Eureka project.