§ Mr. Michael Forsythasked the Secretary of State for Scotland which items are included under the heading of other trading expenditure in the Scottish Tourist Board's accounts; by how much such expenditure under this heading has increased in the last year; what is the reason for the increase; and if he will make a statement.
§ Mr. John MacKayIncluded under this heading are charges and commissions relating to the "Holiday Scotland" scheme. The associated revenue is shown under "other trading income". In addition, this heading includes charges for promotion and publications. In total the expenditure under this heading has increased year on year by £170,000. 1983–84 was the first year of the scheme and for 1984–85 the scheme was expanded and developed to realise its full potential. This is demonstrated by the fact that holidays taken through the scheme in 1984–85 were some 60 per cent. up on the previous year.
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§ Mr. Michael Forsythasked the Secretary of State for Scotland by how much expenditure by the Scottish Tourist Board on hospitality and travel has increased over the last year; for what reasons; and if he will make a statement.
§ Mr. John MacKayThe figures published in the Scottish Tourist Board's accounts for 1984–85 show that expenditure by the board on hospitality and travel has increased by £57,000 over 1983–84. The board incurred additional travel costs in exercising the new power granted in the Tourism (Overseas Promotion) (Scotland) Act 1984; in undertaking increased marketing activity in the United Kingdom; and in co-ordinating the network of area tourist boards.
§ Mr. Michael Forsythasked the Secretary of State for Scotland by how much the grant-in-aid to the Scottish Tourist Board has increased for 1985–86; what are the reasons for the increase; what criteria he used in determining the precise amount of the increase; and if he will make a statement.
§ Mr. John MacKayGrant-in-aid to the Scottish Tourist Board is likely to increase in 1985–86 by some £205,000 over 1984–85. This increase is related to the board's needs. In determining the level of grant-in-aid to the board my right hon. Friend has regard to the net cost of the activities proposed by the board in its annual budget estimates and to the pattern of past expenditure by the board. He also has regard to the competing funding requirements of other programmes within his responsibility.
§ Mr. Michael Forsythasked the Secretary of State for Scotland to what extent in determining the level of grant-in-aid for the Scottish Tourist Board he takes account of any surplus or deficit on its expenditure for the previous year; and if he will make a statement.
§ Mr. John MacKaySignificant deficits of grant-in-aid should not occur. Evidence of any surplus of grant-in-aid made available to the Scottish Tourist Board would form one of the factors which my right hon. Friend would take into account in determining the level of the board's grant-in-aid for the following year. I refer my hon. Friend to my earlier answer to him today.
§ Mr. Michael Forsythasked the Secretary of State for Scotland what was the size of the surplus on the Scottish Tourist Board's accounts for 1984–85; and if he will make a statement.
§ Mr. John MacKayThe Scottish Tourist Board accounts on an accruals basis rather than a cash basis. Within that definition, the operating surplus on the board's accounts for 1984–85 is £39,000. This does not represent free cash funds in the hands of the board but has been deployed in financing movements in fixed and current assets after taking account of movements in liabilities. The total grant-in-aid for 1984–85 has been applied by the board in financing its activities.