ENG-1994 — Page 132

TRADE AND INDUSTRY

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In 1994, the government set up a revolving fund to provide financial support for projects recommended by the Industry and Technology Development Council which contribute to Hong Kong's industrial and technological development. By the end of the year, the government had committed $159 million for 73 projects which are being undertaken by industrial support agencies, tertiary institutions, and other organisations. As part of efforts to facilitate the development of biotechnology industries, the department published a biotechnology directory to facilitate networking and collaboration among research institu- tions, government departments, and local and overseas businesses.

Quality Services

The department is increasingly involved in promoting the wider application of quality assurance in the manufacturing sector. Its Quality Promotion Programme seeks to persuade manufacturers that investment in quality is beneficial. As part of the programme, the department has established an independent organisation, the Hong Kong Quality Assurance Agency, to audit factories which adopt quality management systems conforming to the international standard ISO 9000. The response to the scheme has been very enthusiastic.

The department operates the Hong Kong Government Standards and Calibration Laboratory, which holds the territory's official standards of measurements and provides a calibration service for manufacturers and other end-users. The department's Product Standards Information Bureau advises manufacturers on national and international standards affecting their products. During the year, the bureau introduced several measures to improve its services, including the acquisition of CD-ROMs allowing speedy retrieval of international standards, and the establishment of a customer liaison group to improve communications with clients.

The department also runs the Hong Kong Laboratory Accreditation Scheme (HOKLAS), designed to improve the standard of testing and management in the territory's laboratories and to provide official recognition for those assessed as competent. HOKLAS has so far accredited 52 laboratories for testing items such as toys, textiles, electrical and electronic goods, food and construction materials. HOKLAS participates actively in the International Laboratory Accreditation Conference (ILAC) and hosted the 1994 ILAC Plenary Session in October. It has concluded mutual recognition agreements with counterparts in the United States of America, the United Kingdom, Australia, the Netherlands and New Zealand, clearing the way for mutual acceptance of test certificates, in this way avoiding unnecessary duplication of testing. This, in turn, facilitates trade.

Applied Research and Development

Major efforts have been made to encourage applied research and development in recent years. The Applied R&D Scheme started in February 1993 with precisely this aim, to foster the technological capabilities and competitiveness of industry. The scheme is run by a government-owned company, the Hong Kong Applied R&D Fund Company Limited, and can fund up to half the cost of an applied R&D project, or a total of $10 million for a single company or organisation. Funding support can either take the form of a loan or equity participation, or a combination of both. All locally-incorporated companies are eligible. Project proposals are assessed mainly in terms of their technological merit, innovation and potential for commercial exploitation. Support is not limited to particular industries. By late