Departmental report : 2003

284 Pages·2003·22.5 MB·English

by  Great Britain. Department of Trade and Industry

Vase iti
DEPARTMENT OF
TRADE AND INDUSTRY
Departmental Report 2003
we 9
Cm 5916
eebSe ee S
ie+. ii ,
; ' ; Be aoe f Seat a ue
ry 4 in, e Dekee : | A! teh o's 4 HAs
c 4 j WiMhO,Le D pes
CONTACT DETAILS:
Department of Trade and Industry
The DTI drives our ambition of ‘prosperity 1 Victoria Street
for all’ by working to create the best London SW1H OET
environment for business success in the Telephone: [phone]
1S]G anY AV( ouna l=1]0 M of= 1e)© )( = r=]a lei exo)an) ey=lali=ts E-mail: [email protected]
become more productive by promoting Website: www.dti.gov.uk/
enterprise, innovation and creativity.
This document is part of a series of
We champion UK business at home and Departmental Reports (Cm 5901 to 5931)
abroad. We invest heavily in world-class which, along with the Main Estimates
science and technology. We protect the 2003-04, the document Public Expenditure
gto] aieswe)mnysZe)d <lalep mel -ve)e)(omr-lalemere)arsielaal-6ce Statistical Analyses 2003, and the
And we stand up for fair Flite fo)o la aatealoalt s) Supplementary Budgetary Information
in the UK, Europe and the world. 2003-04, present the Government's
expenditure plans for 2003-2006.
_ The complete series of Departmental
Reports and Public Expenditure Statistical
Analyses 2003 is also available as a set ata
discounted price.
t 4
xxstto .efge e
Department of Trade and Industry
Departmental Report 2003
Presented to Parliament by the Secretary
of State for Trade and Industry and the
Chief Secretary to the Treasury by
Command of Her Majesty.
May 2003
Or: =m et SELE RE TONE) PS EA TREE cE RTS (os A
29 A S5O R 8 STTRR,
2.2 MAY 2003
:
i
i ie
ce Ass OOSS Oe SETAE sRtO E =AS UNGE SE BE sSuaUi ES SENGé oC EES INSc eS EO RN ST TRUE TCO ST TADe
WELLCOME
Bm 5916 £26,590
© Crown Copyright 2003
The text in this document (excluding the Royal Arms and departmental
logos) may be reproduced free of charge in any format or medium providing
that it is reproduced accurately and not used in a misleading context. The
material must be acknowledged as Crown copyright and the title of the
document specified.
Any enquiries relating to the copyright in this document should be addressed
to The Licensing Division, HMSO, St Clements House, 2-16 Colegate, Norwich,
NR3 1BQ. Fax: [phone] or e-mail: [email protected]
Foreword TRADE AND INDUSTRY 2003
FOREWORD
This is my second Departmental Report as advice and support which will enable every
Secretary of State for the DTI. It covers my company to be the best it can be.
Department's activities and achievements over
This Report sets out how we have been
the past year, including our progress against
carrying out this role over the past year.
the Public Service Agreement (PSA) targets
It also outlines our plans for taking it forward
which we agreed in the 2000 Spending
in 2003-06, focusing on our three main
Review, and our new PSA targets and
strategic objectives — supporting successful
priorities for 2003-06.
business; promoting world-class science and
The UK faces new economic challenges. innovation; and ensuring fair markets. It also
The expansion of the European Union will explains how we will continue to manage UK
bring both more opportunities and more nuclear and coal assets and liabilities, ensure
competition. At the same time, technology nuclear safety and security, and manage
is continuing to evolve at a breathtaking pace, export licensing and non-proliferation for
with new products and skills quickly goods controlled for strategic reasons.
becoming outdated.
To help us succeed, we have been changing
We need to recognise these challenges, how we work since our last Report in
then meet them head on. Business and response to the findings of the DTI reviews.
government need to continue to work in The Department has gone through a
partnership to turn the potential pitfalls of fundamental transformation and we have, for
competing in lower wage world markets to example, simplified our organisation to focus
the economic advantage of UK industry. We on our key tasks, strengthened our analytical
need to continue the process of transforming capacity, and begun a radical overhaul of our
the UK into a high-skill economy where better business support programmes.
quality and better value are synonymous with
Below are some of the highlights of our work
British companies.
over the past year.
Businesses have a vital role to play in
focusing on innovation and ensuring that
Promoting World-Class
the skills of their employees are continually
Science and Innovation
updated and improved. But the Government
also has an important role to play in providing v_ The 2002 Spending Review resulted in
the necessary level of investment in the the largest increases to the Science
science base, knowledge transfer, skills Budget for over a decade, increasing its
and infrastructure. real terms trend growth rate from 7% to
10% year-on-year until 2005-06 when it
The UK still has a significant productivity gap
will reach just short of £3 billion — more
with its three major competitors, the United
than double the figure in 1997-98.
States, France and Germany. That's why it’s so
important that the DTI continues to play a key v_ A National Centre and 8 Regional
part in promoting the best policies and Centres were established to form the
business practices; strengthening our science world’s first national “Grid” in e-science.
base; facilitating the adoption of new
technologies and skills; and providing practical
Foreword TRADE AND INDUSTRY 2003
v The number of spin-offs from UK v_ The Employment Act, which began to
universities rose 22% from 203 to 248 come into effect in April 2003, makes it
between 1999-2000 and 2000-01 easier for parents to balance work and
according to the latest figures family; reduces red tape for employers;
published in March 2003. and will make it easier to settle disputes
in the workplace.
Supporting Successful v_ We increased the main rate of the
Business National Minimum Wage from £4.10
to £4.20 per hour and the development
v_ Regional Centres for Manufacturing
rate from £3.50 to £3.60 per hour.
Excellence were established in all
English regions and Vales, as part v_ We held a national programme of
of implementing our Manufacturing Ministerial seminars to encourage more
Strategy. women into public appointments.
The UK remained the prime location in
the EU for foreign direct Investment in Non-Proliferation
2001 according to the latest available
v_ The Export Control Act received Royal
figures.
Assent on 24 July 2002.
We published the Energy White Paper in
February, 2003, setting out a long-term
Public Corporations
strategy for sustainable energy.
v Completion of a new financing package,
by Government on commercial terms,
Ensuring Fair Markets
to provide Royal Mail with the funds it
w We published the “Modernising needs to deliver its renewal programme.
Company Law” White Paper in July
vw A£450m package of financial support
2002, setting out Government proposals
to help maintain the rural post office
for the simplification and modernisation
network for the period 2003 to 2006.
of company law.
| am proud of these achievements.
In January 2003, we published proposals
My Ministerial team and | look forward to
to strengthen confidence in the
continuing our work with the Department's
framework for corporate activity
staff and our many partners to build on them in
following Government-led reviews of
pursuit of our vision of prosperity for all.
audit and accounting issues and Derek
Higgs’s independent review on the role
and effectiveness of non-executive
directors.
The Enterprise Act, which is coming The Rt Hon Patricia Hewitt MP
progressively into effect over the next Secretary of State for Trade and Industry,
year, will enhance enterprise through Minister for Women and e-Minister in Cabinet
strengthening the UK’s competition law
framework, empowering consumers and
transforming our approach to bankruptcy.
We worked closely with the UK steel
industry to reduce the impact of US
tariffs on steel imports.
Rhagair TRADE AND INDUSTRY 2003
RHAGAIR
Dyma fy ail Adroddiad Adrannol fel Ysgrifennydd ymarterol fydd yn galluogi pob cwmni |
Gwladol i'r DTI. Mae'n cwmpasu gweithgareddau wireddu ei botensial llawn.
a chyraeddiadau fy Adran dros y flwyddyn sydd
Mae'r Adroddiad yn gosod allan sut yr ydym
wedi mynd heibio, gan gynnwys ein cynnydd yn
wedi bod yn cyflawni’r swyddogaeth hon dros
6l targedau'r Cytundeb Gwasanaeth Cyhoeddus
y flwyddyn ddiwethaf. Mae’n amlinellu‘n
(CGC) a gymeradwywyd o dan Arolwg Gwariant
cynlluniau ar gyfer 2003-06, gan ganolbwyntio
2000, a’n targedau a‘n blaenoriaethau CGC
ar dri phrif amcan strategol — cefnogi busnes
newydd ar gyfer 2003-06.
-llwyddiannus; hybu gwyddoniaeth a
Mae'r DU yn wynebu heriau economaidd blaengarwch o'r radd flaenaf; a sicrhau
newydd. Bydd ehangu’r Undeb Ewropeaidd yn marchnadoedd teg. Mae hefyd yn egluro sut
dod 4a mwy o gyfle, a mwy o gystadlu hefyd. y byddwn yn parhau | reoli asedion a
Yr un pryd, mae technoleg yn parhau i esblygu rhwymedigaethau glo a niwclear y DU, yn
ar gyflymdra aruthrol, gyda chynhyrchion a sicrhau diogelwch niwclear, ac yn cadw trefn
medrau newydd yn mynd o arfer yn fuan iawn. ar drwyddedu allforion ac an-ymlediad nwyddau
sydd wedi eu rheoli am resymau strategol.
Mae angen inni gydnabod yr heriau hyn, a‘u
meistroli yn ddi-dderbyn-wyneb. Mae angen | | hwyluso Ilwyddiant yn hyn o beth, yr ydym
fusnes a llywodraeth barhau | weithio mewn wedi bod yn newid ein ffordd o weithio ers ein
partneriaeth er mwyn sicrhau bod peryglon Hadroddiad diwethaf mewn ymateb | gasgliadau
posibl cystadlu mewn marchnadoedd byd- arolygon y DT|. Mae'r Adran wedi gweld
eang lle telir cyflogau is yn cael eu troi i fantais gweddnewid sylfaenol ac yr ydym, er enghraifft,
economaidd diwydiant y DU. Mae angen inni wedi symleiddio’n trefniadaeth i ganolbwyntio ar
barhau'r broses 0 weddnewid y DU yn ein gorchwylion allweddol, wedi cryfhau'n gallu
economi medrau uchel lle bydd gwell dadansoddol, ac wedi cychwyn trawsffurfiad
ansawdd a gwell gwerth yn rhan o hanfod trwyadl ein rhaglenni cefnogi busnes.
cwmniau Prydeinig.
Gwelir isod rai o uchafowyntiau'n gwaith dros
Mae gan fusnesau ran hanfodol i'w chwarae y flwyddyn sydd wedi mynd heibio.
wrth ganolobwyntio ar flaengarwch a sicrhau
bod medrau eu gweithwyr yn cael eu cadw'n
Hybu Gwyddoniaeth a
gyfoes a’u gwella. Ond mae gan y Llywodraeth
Blaengarwch o’r Radd Flaenaf
hithau ran hanfodol |'w chwarae wrth
ddarparu’r lefel angenrheidiol o fuddsoddiad yn v Arweiniodd Arolwg Gwariant 2002 at y
y sylfaen wyddoniaeth ac mewn trosglwyddo cynnydd mwvyef i’r Gyllideb Wyddoniaeth
gwybodaeth, medrau a seilwaith. ers dros ddegawd, gan godi’r gyfradd dwf
debygol mewn termau real 0 7% i 10%
Ceir bwich cynhyrchedd sylweddol o hyd
flwyddyn ar dl blwyddyn tan 2005-06 pryd y
rhwng y DU a’i thri phrif gystadleuydd, yr Unol
bydd yn cyrraedd lefel ychydig yn brin o £3
Daleithiau, Ffrainc, a'r Almaen. Dyna pam el
biliwn — mwy na dwywaith ffigur 1997-98.
bod mor bwysig ir DT! barhau | chwarae rhan
allweddol wrth hybu'r polisiau a’r arferion v Sefydilwyd Canolfan Genedlaethol ac 8
busnes gorau; cryfhau'n sylfaen wyddoniaeth; Canolfan Ranbarthol i ffurfio “grid
hwyluso mabwysiadu technolegau a medrau cenedlaethol” cynta’r byd ym maes
newydd; a darparu cyngor a chefnogaeth e-wyddoniaeth.
Rhagair TRADE AND INDUSTRY 2003
v Cododd nifer yr ymgymeriadau deilliedig v Mae'r Ddeddf Cyflogaeth, a
mewn cysylltiad a4 phrifysgolion y DU 0 203 ddechreuodd ddod i rym yn Ebrill 2003,
i 248, cynnydd 0 22%, rhwng 1999-2000 a yn ei gwneud yn haws | rieni sicrhau
2001-01 yn Ol y ffigurau diweddaraf a cydbwysedd rhwng teulu a gwaith; yn
gyhoeddwyd ym Mawrth 2003. lleihau’r fiwrocratiaeth sy'n llesteirio
cyflogwyr; ac yn hyrwyddo torr!
anghydfod yn y gweithle.
Cefnogi Busnes Llwyddiannus
v Buinni gynyddu prif gyfradd y Lleilafswm
wv Sefydlwyd Canolfannau Rhanbarthol ar
Cyflog Cenedlaethol o £4.10 1 £4.20 yr
gyfer Rhagoriaeth Gynhyrchu yng
awr, a'r gyfradd ddatblygu o £3.50 |
Nghymru a phob un o ranbarthau Lloegr
£3.60 yr awr.
fel rhan o broses gweithredu’n
Strategaeth Gynhyrchu. wv Cynhaliwyd gennym raglen genedlaethol
Oo seminarau Gweinidogol | annog mwy o
vw Yn 2001, y DU oedd lleoliad pennaf yr
ferched i geisio penodiadau cyhoeddus.
Undeb Ewropeaidd o hyd ar gyfer
buddsoddiad tramor uniongyrchol yn ol
y ffigurau diweddarat sydd ar gael. An-ymlediad
wv Bu inni gyhoeddi’r Papur Gwyn ar Ynni wv Cafodd y Ddeddf Rheolli Allforion
yn Chwefror 2003, gan osod strategaeth gydsyniad brenhinol ar 24 Gorffennaf 2002.
dymor-hir.ar gyfer ynni cynaliadwy.
Corfforaethau Cyhoeddus
Sicrhau Marchnadoedd Teg
v Cwoblhau pecyn cyllido newydd, gan y
v Bu inni gyhoeddi’r Papur Gwyn Llywodraeth yn 6! telerau masnachol, |
“Modernising Company Law” yng roi i'r Post Brenhinol y cyllid sydd eisiau |
Ngorffennaf 2002, gan osod cynigion y wireddu el raglen adnewyddu.
Llywodraeth ar gyfer symleiddio a
wv Pecyn o gefnogaeth ariannol, gwerth
moderneiddio’r Gyfraith Gwmniau.
£450 miliwn, | helpu i gynnal rhwydwaith
v Yn lonawr 2008, bu inni gyhoeddi cynigion | y swyddfeydd post gwledig yn ystod y
grythau hyder yn y fframwaith ar gyfer cytnod rhwng 2003 a 2006.
gweithgarwch corfforaethol, yn sgil
Rwy’'n falch o'r cyraeddiadau hyn. Mae fy
arolygon, wedi eu harwain gan y
nhim Gweinidogol a minnau yn edrych ymlaen
Llywodraeth, o faterion cyfrifeg ac archwilio
at barhau i gydweithio a staff yr Adran a’‘n
ariannol ac arolwg annibynnol Derek Higg o
partneriaid niferus | adeiladu ar sail y
swyddogaeth ac effeithiolnwydd
cyraeddiadau | wireddu'n gweledigaeth o
cyfarwyddwyr anweithredol.
ffyniant | bawb.
v Bydd y Ddeddf Menter, a ddaw i rym
mewn camau dros y flwyddyn nesaf, yn
hybu menter drwy gryfhau fframwaith ae Tele
cyfraith gystadlu’r DU, rhoi gallu yn
nwylo defnyddwyr a thrawsnewid ein
Y Wir Anrh. Patricia Hewitt AS
hymagwedd at fethdalu.
Ysgrifennydd Gwladol dros Fasnach a
v_ Buom yn cydweithio’n agos 4 diwydiant Diwydiant, Gweinidog Merched ac e-Weinidog
dur y DU i leihau effaith tariffiau’r Unol yn y Cabinet
Daleithiau mewn cysylltiad 4
mewnforion dur.
Contents TRADE AND INDUSTRY 2003
CONTENTS
Foreword by the Secretary Section G: Executive Agencies and
of State 3 Public Corporations 180
19 The Executive Agencies 181
pentents oie (EiulsT)Aw ow TERME Maat META
List of Figures Pi Corporations 192
Introduction 10 Annexes
Section A: Delivering Better Annex A: Core Tables 198
Public Service 18 A1_ Total Public Spending 199
1 Progress on delivering PSA and A2 Resource Budget 200
other targets 19 A3 Capital Budget 201
2 Plans for 2003-06 and Managing A4 Capital Employed 202
the Department 42 A5_ Administration Costs 203
Section B: World-Class Science DB ecs tatus mes
and Innovation 58 Annex B: Supplementary Tables 206
3 Science and Engineering Base 59 B1_ Resource Estimate Details 207
4 Cross Departmental Work on Science 70 B2 Statement of Contingent or
5 Innovation 75 Nominal Liabilities 221
Section C: Successful Business 86 Boece) Bus SSN ale ay
6 Business Relations 87 Ce ae cae
B5 Non-Departmental Public Bodies 234
7 Business Support 1 =) ; :
; B6 = Senior Civil Service Salaries UES
8 Small Businesses and Enterprise 95 Bie PUoleopoinimantsimade DADRE +2 40
9 International Trade and Investment 105
10 Regional Growth 110
11. Energy 117. Annex C: Electronic Service
Section D: Fair Markets (Disee opt ae oie
12 The Framework for Business Activity 129 Annex D: Managing the
13 Consumers and Competition Policy 141 Department 252
14 Europe and World Trade 148 D1 Investment and Asset Management 253
15 Commitment and Partnership in the D2 Capital Modernisation Fund 253
Workplace 154 D3 _ Invest to Save Budget 253
16 Diversity 164 D4 Public Accounts Committee reports 254
D5) = Environmental Performance 250
Section E: DTI Managed D6 Health and Safety Report 2002-03 256
Liabilities 170
17. DTI Managed Liabilities 171 Bibliography 258
Section F: Export Control and List of Websites 262
Non-Proliferation 176
. : List of Acronyms 264
18 Export Control and Non-proliferation 177
index 269
List of Figures TRADE AND INDUSTRY 2003
LIST OF FIGURES
Chapter Chapter Figure Contents
number number
Progress On Delivering PSA and other Targets 1 Figure 1.1 International Comparisons of Productivity
(Headline Data) (GDP per worker, UK=100)
Progress on Delivering PSA and other Targets 1 Figure 1.2 International Comparisons of Productivity
(Experimental Data) (GDP per worker, UK=100)
Progress on Delivering PSA and other Targets 1 Figure 1.3 COz2 emissions on an IPCC basis
Plans For 2003-06 and Managing The Department 2 Figure 2.1 Service First performance against Whitehall
Standards
The Science and Engineering Base Figure 31 Research Councils Capital Assets
The Science and Engineering Base Figure 3.2 Breakdown of International Subscriptions by the
Research Councils (£ million)
The Science and Engineering Base 3 Figure 3.3 Research Councils’ Income from Grant in Aid as
a Percentage of Councils’ Total Gross Expenditure
and the total Science Budget, 2003-2004
The Science and Engineering Base Figure 3.4 Expenditure on Fusion (£ million)
The Science and Engineering Base Figure 3.5 Expenditure on Science (£ million)
Cross-Departmental Work On Science 4 Figure 4.1 Contribution from Main Estimates 2003-04
(£ thousand): RfR2 Function D (OST Initiatives)
Innovation 5 Figure 5.1 Connectivity Indicator 1997-2002 (%)
Innovation 5 Figure 5.2 Expenditure on Innovation (£ million)
Business Relations 6 Figure 6.1 Structure of Business Group
Business Relations 6 Figure 6.2 Sector Teams within Business Relation Group
(Business Relations 1 and Business Relations 2)
Business Support 7 Figure 7.1 The Strategic Framework for the development of
Business Support Products
Business Support i Figure 7.2 The Business Support Monitoring and Evaluation
Cycle
Small Businesses and Enterprise Figure 8.1 Business Link Local Network Market Penetration
Small Businesses and Enterprise Figure 8.2 TCS Performance and Expenditure
Small Businesses and Enterprise Figure 8.3 Smart and Enterprise Grant Expenditure in
England (£ million)
Small Businesses and Enterprise Figure 8.4 Small Firms Loan Guarantee Scheme
Small Businesses and Enterprise Figure 8.5 Expenditure on Small Businesses and Enterprise
(£ million)
International Trade and Investment 9 Figure 9.1 Number of firms supported in trade fairs, missions
and seminars
International Trade and Investment Figure 9.2 Inward Investment Cases and effect on Jobs
International Trade and Investment Figure 9.3 British Trade International Programme
Expenditure: Major Programmes (£ million)
Regional Growth 10 Figure 10.1 Total Government Funding for Regional
Development Agencies (£ million)
Regional Growth 10 Figure 10.2 Expected RSA expenditure by region for 2002-03
(£ million)
Regional Growth 10 Figure 10.3 European Regional Development Fund Provision
(DT! element — £ million)
Regional Growth 10 Figure 10.4 DTI/BTl Expenditure on regional development
(£ million)
Energy 11 Figure 11.1 Expenditure on energy (£ million)
The Framework For Business Activity 12 Figure 12.1 Sources of Complaints Leading to Company
Investigations in 2001-02
The Framework For Business Activity 12 Figure 12.2 Expenditure on Corporate Law and Investor
Protection (£ million)