WEDNESDAY, OCTOBER 12, 1994
- 13
APPLIED RESEARCH AND DEVELOPMENT FUND
THE FOLLOWING IS A SPEECH BY THE ACTING SECRETARY FOR TRADE AND INDUSTRY, MRS REGINA 1P, IN RESPONSE TO A QUESTION BY THE HON NGAI SHIU-KIT IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY):
MR PRESIDENT,
IS
THE APPLIED RESEARCH AND DEVELOPMENT FUNDING SCHEME ADMINISTERED BY THE GOVERNMENT-OWNED APPLIED RESEARCH AND DEVELOPMENT FUND CO LTD, WHICH IS REQUIRED TO SEEK A RETURN OF FIVE PER CENT ON FUNDS ADVANCED FROM THE CAPITAL INVESTMENT FUND. SINCE THE SCHEME WAS LAUNCHED IN FEBRUARY 1993, THERE HAVE BEEN SOME 300 ENQUIRIES, LEADING TO 28 APPLICATIONS, OF WHICH TEN HAVE BEEN APPROVED AND SIX ARE BEING PROCESSED. (THIS APPROVAL RATE COMPARES FAVOURABLY WITH PRIVATE SECTOR VENTURE CAPITAL COMPANIES.}
NEVETHELESS, AS THE ORIGINAL EXPECTATION WAS THAT THE SCHEME WOULD HELP TO FUND AN AVERAGE OF 20 PROJECTS EACH YEAR, THE COMPANY IS CONSIDERING CHANGES TO THE SCHEME TO MAKE IT MORE ATTRACTIVE TO POTENTIAL APPLICANTS, INCLUDING STREAMLINING THE APPLICATION PROCESS, EXPANDING BOTH THE PROPORTION AND THE SCOPE OF EXPENDITURE WHICH MAY BE COVERED BY FUNDING, AND BY MAKING MORE OF THE FUNDING AVAILABLE THROUGH EQUITY PARTICIPATION RATHER THAN REPAYABLE, INTEREST-BEARING LOANS. THE COMPANY HAS RECOMMENDED AGAINST MAKING OUTRIGHT GRANTS ΤΟ APPLICANTS, BUT HAS SUGGESTED THAT THE OBLIGATION TO ACHIEVE A FIVE PER CENT RATE OF RETURN BE LIFTED, NOTING THAT THIS WOULD ENABLE
IT TO OFFER SOFT LOANS AND TO ASSUME A HIGHER LEVEL OF RISK.
TO
THE GOVERNMENT IS GIVING CAREFUL CONSIDERATION TO PROPOSALS INCREASE THE PROPORTION OF EXPENDITURE WHICH MAY BE FUNDED AND ΤΟ REMOVE THE REQUIREMENT TO ACHIEVE A FIVE PER CENT RATE OF RETURN, BOTH OF WHICH WOULD REQUIRE THE CONSENT OF THE FINANCE COMMITTEE OF THIS COUNCIL.
APPLIED RESEARCH CENTRE
* *
THE FOLLOWING IS A SPEECH BY THE ACTING SECRETARY FOR TRADE AND INDUSTRY, MRS REGINA IP, IN RESPONSE TO A QUESTION BY THE HON NGAI SHIU-KIT IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY);
MR PRESIDENT,
THE GOVERNMENT HAS ASKED THE INDUSTRY DEVELOPMENT COUNCIL TO ADVISE ON THE ESTABLISHMENT OF AN APPLIED RESEARCH CENTRE, AND EXPECTS TO RECEIVE ITS RECOMMENDATIONS NEAR FUTURE. FUNDING PROPOSALS WILL BE MADE TO THE FINANCE OF THIS COUNCIL AS SOON AS POSSIBLE THEREAFTER.
AND
TECHNOLOGY
IN THE COMMITTEE
/THE COUNCIL