Scottish Development Agency Bill [Money] (Hansard, 29 October 1987)

§ The Minister of State, Scottish Office (Mr. Ian Lang)
I beg to move, That, for the purposes of any Act resulting from the Scottish Development Agency Bill, it is expedient to authorise any increase in the sums payable out of money provided by Parliament or payable out of the National Loans Fund or Consolidated Fund under any other enactment which is attributable to the provision of the said Bill increasing the financial limit specified in section 13(3) of the Scottish Development Agency Act 1975 to £1,200 million. This resolution authorises an increase in the limit on the amount of money that can be made available to the SDA by Parliament out of the national loans fund or Consolidated Fund.
Expenditure by the agency depends on a number of factors, some of which are outwith its control, such as the needs of Scottish industry for investment finance, the availability of land for environmental projects, the speed with which the agency can devise plans and implement schemes and the ability of the agency and Scotland as a whole to continue to attract inward investment. The new financial limit does not, therefore, pre-empt or anticipate decisions on the agency's future expenditure plans. It has been arrived at on the basis of a realistic assessment of the agency's expenditure in recent years—[Interruption.]

§ Mr. Speaker
Order. I ask the House to listen carefully to the money resolution.

§ Mr. Lang
As I said earlier, that expenditure has been higher in real terms than when the Labour party was in power. In our view, the extra resources being made available to the SDA should allow it to carry on with its present functions uninterrupted over the next five years. That continued commitment to the agency will provide it with stability and maximum flexibility in determining its priorities and the emphasis it puts at any one time on its respective functions.
The Bill does not lay down how the SDA's funds are to be allocated among its functions. That will depend on a number of things. For example, it will depend on the SDA's own view of its priorities, the state of the Scottish economy and the speed with which land, manpower and other resources can be mobilised. My right hon. and learned Friend the Secretary of State and I will continue to take a close interest through the SDA's corporate planning and budgeting process, in how the agency intends to allocate its resources among its various functions and ensure that the impact of the resources provide value for money.

§ Mr. Donald Dewar (Glasgow, Garscadden)
I feel I should apologise to the House for delaying it for a minute or two at the end of what has been a long day. I hope that I will not have to make too many points. However, there are one or two important things that should be said.
A recurring theme of this debate is a misunderstanding on the part of many of those who have taken part, especially the hon. Member for Darlington (Mr. Fallon), whose assiduous interest in Scottish affairs is becoming one of the features of our little round in the House. The misunderstanding is that, because the borrowing 539 requirement has risen from £700 million to £1,200 million, it in some way represents a new and generous turn on the part of the Government which will be reflected directly in the money that will be made available to the SDA under this resolution. It is important that we should clarify that.
Although the Minister and I may have had an argument over the past day or two about whether the budget of the SDA, and the Government's contribution, has gone up in real terms, I suspect that we would agree that the increase in the borrowing requirement does not necessarily show any intention by the Government to raise the annual budget and, therefore, the spending power or the ability of the agency to help, revive and rebuild the structure of the Scottish economy. I recognise that the Minister cannot anticipate future Budget statements. However, can he tell us whether the increase is calculated merely to allow the budget to continue at its present level or whether he intends to be more generous in the future?

§ Mr. Lang
With the leave of the House I shall reply briefly.
As I explained to the hon. Member for Glasgow, Garscadden (Mr. Dewar) when I moved Second Reading of the Bill, which I admit was some time ago, I made it clear that the increased financial limit should be sufficient to allow the budget to survive for the next five years, or about that time. No possible commitment can be given to the specific budget of the SDA in years to come.