WRITTEN QUESTION E-1174/00

by Malcolm Harbour (PPE-DE) to the Commission

(12 April 2000)

Subject: Research in the automotive sector

In view of the restructuring taking place in the West Midlands car industry, as a result of the break up of the Rover Group by BMW, could the Commission please indicate:

1. The status of current research projects into new automobile technologies?

2. The possibilities of advancing promising new technologies through a special programme of start-up funding for new enterprises based in the West Midlands?

3. Whether it could make special funding available, in recognition of the severe unemployment problem among skilled automotive technicians resulting from the Rover break-up?

Answer given by Mr Busquin on behalf of the Commission

(8 June 2000)

1. The Rover Group, since 1992, has participated in 79 European funded research and technological development (RTD) projects. Their participation as a co-ordinator or partner spanned the whole range of automotive research, development and demonstration in areas such as advanced design and manufacturing technologies, information and telecommunication technologies, efficient and renewable energy technologies, skills enhancement and training activities. 30 of these projects are still running.

2. The 5th framework programme for research encourages the exploitation of Community research projects and has only limited means to support start-up funding for new enterprises, mainly through the specific programme Promotion of innovation and encouragement of small and medium sized enterprises (SME) participation.

The same applies to the third multiannual programme (MAP) for SMEs. This basically involves responding to invitations to tender and calls for expressions of interest which are published in the Official journal and are also available on the Cordis web site.

A further possibility concerns access to certain funds such as the European technology facility (ETF), and ETF Start-up (part of the growth and employment initiative) which are implemented in partnership with, and administered by, the European Investment Bank (EIB) and the European Investment Fund (EIF). In this case Community funds are disbursed via specialised venture capital firms, which function as qualified intermediaries in vetting applicants for financing and then taking equity stakes in the successful candidates on the basis of commercial criteria.

A large part of the West Midlands, including much of Rover's Longbridge plant, has objective 2 or objective 2 phasing-out status. Accordingly, Community structural funds amounting to some 850 million will be available to the West Midlands objective 2 area for the period 20002006. The negotiations on the objective 2 development plan are about to start and special attention will be paid to the decline in the automotive sector and the need to diversify the economy and create new companies. Under structural funds and in particular through the European regional development fund the following activities in support to SMEs are possible: business support, financing of technology transfers, improvement of access by enterprises to finance and loans, provision of infrastructure and direct aid to investment. The programme will be directed towards the creation of sustainable jobs and the support to the structural adjustment of the region.

3. As regards the issue of severe unemployment among skilled automotive technicians no special or additional funding is envisaged in the light of the Rover break-up. In addition to the role of objective 2 outlined above, a considerable amount of European social fund will be available to the West Midlands through objective 3 and can be used to address, amongst other issues, the potential unemployment problems resulting from BMW selling off Rover. The West Midlands will receive a considerable share out of the United Kingdom objective 3 programme worth 4 500 million. The objective 3 plan is structured according to the five policy fields contained in Council Regulation (EEC) No 2084/93 of 20 July 1993 amending Regulation (EEC) No 4255/88 laying down provisions for implementing Regulation (EEC) No 2052/88 as regards the European social fund(1). In relation to the Rover case, two policy fields are particularly relevant: policy field a) active labour market policies (one of the strategic objectives of this priority is precisely to reduce (long-term) unemployment through measures targeted at those recently unemployed or threatened by unemployment) and policy field d) adaptability (one of the strategic objectives of this priority is to improve the skills base and adaptability of the employed work force).

Moreover, the Community vocational training action programme Leonardo da Vinci (2nd phase 2000-2006), supports the lifelong training policies of the Member States. It may provide an opportunity in

creating the proper training tools and mechanisms (pilot projects) for setting-up training schemes. These may help enhance aptitudes and skills and facilitate a successful reintegration of workers into working life.

(1) OJ L 193, 31.7.1993.