Development and Enterprise, Borders (Hansard, 6 March 1991)

§ 8. Mr. Kirkwood
To ask the Secretary of State for Scotland what plans he has to promote development and enterprise in the Borders.

§ Lord James Douglas-Hamilton
The Government are putting in place specific arrangements to give local control to the promotion of development and enterprise in the Borders.
The Borders local enterprise company will work in partnership with the private sector, local authorities and other agencies in the area to deliver the Government's economic development, training and environmental improvement programmes in the manner best suited to the needs of the area.

§ Mr. Kirkwood
Does the Minister think that adequate cash or investment programmes are available to local and statutory authorities in the Borders? Is he aware that the Borders local enterprise council made a bid for £12.6 million, to invest in capital developments but was awarded only £8.5 million which represents the biggest cut for any local enterprise company in Scotland? Is he further aware that Borders regional council asked for £4 million for future capital development but was awarded only £1 million? How can statutory authorities buy the necessary sites, set up advance factories and support local industry if they have inadequate resources to enable them to do so?

§ Lord James Douglas-Hamilton
The allocations represent a significant increase. The allocation to Borders Enterprise represents an increase of 27 per cent. over comparable spending in the area this year and Borders Enterprise will have grant powers to encourage the provision of advance factories. It is keen to use those powers rather than to provide the property itself. District councils in the region received capital allocations totalling £1.8 million, an increase of £260,000, and Borders regional council received an allocation of £1.2 million, which was an increase of £350,000. I sympathise with the hon. Gentleman and we recognise the need to provide premises for alternative sources of employment to diversify the local economy. The increased allocations reflect that. In addition, local enterprise companies will have authority to commit up to £250,000 on any project and discretion to devise specific initiatives to reflect local circumstances. Those matters can be followed up with the companies.