Scottish Development Agency (Hansard, 5 July 1989)

§ 9. Mr. McKelvey
To ask the Secretary of State for Scotland when he last met the chief executive of the Scottish Development Agency; and what matters were discussed.

§ Mr. Rifkind
I met the agency board, including the chief executive, on 22 May and discussed a range of issues of mutual interest.

§ Mr. McKelvey
Notwithstanding the reply that the Secretary of State gave to question No. I and also to this question, did he have any discussions with the chief executive about the shortfall of funds? Is he aware that in my constituency of Kilmarnock, small Scottish business men with good businesses and good workers are losing out on projects that could have received a grant because spending is ahead of schedule, either as a result of sheer efficiency on our part or because the weather in Scotland is mild at the moment and building work is further ahead than usual? If the Secretary of State could give more money to the Scottish Development Agency now so that those projects could be kept within the plan, he would dispel the fears of those small business men who are losing out and also defeat the wisecrackers who are going about the streets of Kilmarnock suggesting that he has backed the Wang horse.

§ Mr. Rifkind
I am delighted by the hon. Gentleman's comments. Any suggestion that the SDA is underfunded does not match the facts when one considers what has happened. Total provision for the agency in 1989–90 is £160 million, compared with £147 million last year. The fact that support is being sought for even more projects suggests that economic activity in Scotland is healthy. I have no doubt that the SDA, which has £160 million available to it this year, will be able to respond positively to a very large proportion of company requests which justify support.

§ Mr. Buchanan-Smith
Is my right hon. and learned Friend aware that, compared with the view of the hon. Member for Kilmarnock (Mr. McKelvey), we in the north-east of Scotland appreciate the work of the Scottish Development Agency and the funding and support that it provides both for major projects, such as Aberdeen Beyond 2000, and for rural projects, such as those to be found in Braemar in my constituency? May I have his assurance that the SDA, contrary to the way in which it acted in the past, will continue to take an interest in activities in areas outside the central belt of Scotland, such as the north-east?

§ Mr. Rifkind
My right hon. Friend is absolutely correct. We have emphasised to the Scottish Development Agency that its remit is for the whole of Scotland and that the north-east in particular is entitled to its fair share of any resources that are available. Some of the criticism that one used to hear a few years ago about the concentration of SDA activity in one particular part of Scotland is now heard much less often. I am delighted that my right hon. Friend is able to confirm that the SDA is supporting projects in his area.

§ Mr. Malcolm Bruce
When the Secretary of State next meets the Scottish Development Agency, will he consider asking it to look into the structure of community businesses, which are developing well in Scotland but which need to be given a new legal status if they are to expand further? Will he also consider whether the SDA might have a role in providing venture capital for new businesses as there is still a gap in the market for venture capital, particularly for those who have ideas and energy but no collateral?

§ Mr. Rifkind
I am interested in what the hon. Gentleman said. I shall be happy to ensure that his ideas are discussed with the SDA, to find out whether there is a gap in its ability to meet that requirement and perhaps it will comment on the points raised by the hon. Gentleman.

§ Sir Nicholas Fairbairn
Will my right hon. and learned Friend take time today to congratulate the director of the national galleries on resuming and restoring the galleries for such a small sum? Will he remind the House—[Interruption.]

§ Mr. Speaker
Order. I am no great expert on Scottish matters, but is this a matter for the SDA?

§ Sir Nicholas Fairbairn
Yes, Mr. Speaker. Will my right hon. and learned Friend remind the House that the Government have provided the funds to enable the work to be done through the SDA because of our economic policies. We have had a decade of regeneration in the arts in Scotland unrivalled by any previous Government.

§ Mr. Rifkind
I can certainly confirm to my hon. and learned Friend that the restoration and improvements to the national galleries have rightly received wide applause throughout Scotland. It was a remarkable achievement, whether or not the SDA was involved.

§ Dr. Godman
During his meeting with the chief executive of the SDA, did the Secretary of State establish the reasons for the decision to include three public houses and a betting shop within the boundaries of the Inverclyde enterprise zone? Is it not the case that the two local authorities will lose more than a bob or two over the next 10 years because of that gaff? Given the Secretary of State's ever-ready desire to berate Labour local authorities for their poor financial management, will he now give an assurance that the two councils concerned will not lose any money because of that gaff?

§ Mr. Rifkind
First, I understand that those particular sites were regarded as potential sites that could be used to attract new investment to Inverclyde. Secondly, it is highly unlikely that local authorities will lose out, because their revenue support grant takes into account their expected revenue. If that revenue goes down, there will be an enhancement of revenue support grant. Thirdly, I am sure that the hon. Gentleman will join me in expressing delight at the decision of Crusader to move 300 jobs from Reigate in Surrey to Inverclyde because of the Government's decision to create an enterprise zone there.