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Know-How Fund

Volume 205: debated on Friday 13 March 1992

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To ask the Secretary of State for Foreign and Commonwealth Affairs if he will list by project the amount of know-how fund grant committed to date under the two schemes to encourage the establishment of British investment operations in central and eastern Europe, the Baltic states and the former Soviet Union; and if he will make a statement.

So far over £3 million has been committed to 150 successful applicants under the two schemes. The first scheme provides up to 50 per cent. grant towards the cost of pre-investment feasibility studies (PIFS) into proposed British investment operations; the second scheme finances, on a pump-priming basis, the costs of providing training in management and business skills to key indigenous personnel who will run British investment operations (the training for investment personnel scheme—TIPS). There has been a good response from a wide cross-section of British industry and service sector firms and organisations and the schemes appear to be achieving their aims. Forty-nine pre-investment feasibility studies supported by the know-how fund have so far been completed; in 35 of these, applicants have decided definitely to proceed with their investment; in a further five a final decision has not yet been taken.Information on the grant committed by project is as follows:

Pre-investmenl feasibility studies (PIFS) scheme
Proposed Investment OperationGrant Approved £
Poland
Airport terminal41,000
Bulk liquids storage terminal12,500
Interpreter/translation service2,946
Poultry breeding14,350
Fuel efficiency etc instrumentation13,383
Coffee production21,725
Engineering consultancy5,097
Bulk sugar terminal50,000
Disposable medical equipment43,996
Business/accountancy forms11,775
Bulk liquid storage terminal47,500
Carpet manufacture50,000
Printing inks manufacture20,215

Proposed Investment Operation

Grant Approved £

Business Centre11,323
Training/consultancy for financial sector6,656
Technology (CAD/CAM) centres50,000
Navigation, surveying and vehicle products35,484
Soft drinks production plant22,325
Handbags manufacture12,950
Joint venture with survey, mapping etc company24,190
Non-woven material manufacture11,970
Medical indemnity insurance joint venture20,670
Fruit, vegetable processing plant6,924
Environmental management consultancy12,122
Management consultancy4,925
Mining equipment manufacture24,690

Hungary

Gas-fired generation plant15,000
Bed manufacture8,244
Poultry breeding10,740
Rack shelving23,815
Technology transfer/development25,000
Project consultancy9,736
Business centre/consultancy10,500
Business intelligence service9,500
Water/environmental engineering consultancy13,010
Alcoholic beverages50,000
Management training6,676
Corrugated board manufacture50,000
Pre-fabricated housing8,425
Tractor manufacture50,000
Consulting engineering/environmental consultancy17,643
Knitwear, knitted fabric manufacture/trading27,911
Training/consultancy for financial sector5,625
Timber building system manufacture9,031
Water control, monitoring equipment joint venture3,348
Financial advisory service1,400
Pig breeding21,210
Leisure/learning project50,000
Funeral services joint venture27,611

Czechoslovakia

Architectural practice19,395
Castings20,393
Warm air ducting2,260
Coal tip washing6,631
Clothing manufacture14,992
Quarrying50,000
Plasterboard manufacture50,000
Software development41,737
Hotel50,000
Business centre11,088
Electronic and technology training equipment4,061
Copper smelting50,000
Investment castings foundry23,842
Hand tools manufacture26,542
Deer breeding7,654
Diesel engines manufacture50,000
Historic residential property restoration/development13,126
Electronic components manufacture50,000
Mining venture32,986
Dolomite etc. mining15,435
Chemical manufacture50,000
Clay production47,954
Commercial TV channel consortium40,037
Motor industry research and development etc. joint venture40,603
Clay production21,508

Bulgaria

Industrial training joint venture29,035
Technical training joint venture3,945
Waste oil reclamation plant47,625
Consultancy joint venture with institute6,167
Ski resort development46,553
Electronic products (civil markets)36,800
Healthcare company33,125
Offshore exploration support facility2,750

Proposed Investment Operation

Grant Approved £

Romania

Mushroom farming2,950
Diesel engines manufacture50,000
Plant hire joint venture20,413

Russia

Oil/gas industry training centre18,049
Small business development50,000
Advertising/marketing etc. consultancy34,726
Mining industry software6,467
Dairy food processing equipment manufacture10,162
Vehicles manufacture18,385
Vehicles joint venture22,019
Food processing joint venture27,354
Agricultural spray equipment etc. joint venture10,289
Bakery operation33,857

Ukraine

Coal washing plant31,477
Bakery operation32,743

Kazakhstan

Poultry breeding14,264
Mining project50,000

Training for investment personnel scheme (TIPS)

Investment operation

Grant approved £

Poland

Bulk packaging manufacture6,050
Language/business skills training8,420
Boiler manufacture8,644
Consulting engineers practice8,900
Management training school25,642
Open learning centres50,000
Dental products manufacture8,966
Property/asset valuation, consultancy4,139
Pharmaceutical products50,000
Business computer systems25,921

Hungary

Management consultancy33,264
Water and effluent consultancy18,922
Marble quarrying28,276
Pallet racking/shelving manufacture22,862
Quantity surveying23,961
Printing business12,388
Bed manufacture24,120
English language training14,185
Sewing thread manufacture26,424
Business centre/consultancy29,205
Property development7,165
Risk assessment consultancy17,480
Bar code systems5,835
Management consultancy12,269
Shopping complex joint venture8,500
Medical indemnity insurance operations16,205

Czechoslovakia

Machine tool manufacture1,646
Warm air ducting4,000
Business consultancy7,550
Property consultants/chartered surveyors28,839
Management/engineering consultancy23,900
Mechanical seals manufacture50,000
Building and construction joint venture10,916
Bar code systems4,690
Pipe and cable locating equipment14,434
Mineral water bottling plant8,104
Plant and tool hire joint venture40,000
Investment castings foundry45,234
Investment consultancy9,376

Investment operation

Grant approved £

Bulgaria

CAD/CAM sytems11,863

Romania

Mushroom farming27,380

Estonia

Retail fabric shop15,600

Russia

Machinery design and manufacture30,610
Fuel filtration systems manufacture23,984
Supermarket bakery22,311
Bar code systems8,345
Design, management services consultancy30,312
Home study language training joint venture15,523
Tourism joint ventures24,776

Ukraine

Tampon manufacture29,064

Ex-German Democratic Republic(approved before unification in October 1990) Consulting engineers practice

20,265