§ Mr. Steelasked the Secretary of State for Scotland (1) if he will make a statement on the future of the development of rural workshops scheme administered by 581W the Scottish Development Agency, with particular reference to the funds allocated and the number of applications which have been rejected due to inadequate funding;
(2) what representations he has received on the level of funding of the development of rural workshops scheme administered by the Scottish Development Agency;
(3) what policies his Department is pursuing to encourage the conversion or extension of buildings in rural areas to create workshops.
Mr. RilkindThe development of rural area workshops scheme was launched by the Scottish Development Agency in November/ December 1984 for a pilot period of two years with an annual budget of £300,000. The scheme, which was aimed at encouraging the provision of workshop accommodation in rural areas, proved so popular that on two subsequent occasions the budget was, with ministerial approval, increased so that over the pilot period a total of some £1.3 million has been allocated by the agency to the scheme. As agreed at the scheme's inception it, together with the agency's programme for rural initiatives and developments scheme, was the subject of a review at the end of the pilot period to determine how best future needs might be met. The consultants' report of the review of both schemes has been under consideration, and my officials and the agency are currently discussing possible successor arrangements. These discussions are still at an early stage and it would not be appropriate for me to comment on them. I understand from the agency that no applications have been rejected due to insufficient funding but that some are being held in abeyance pending a decision on future arrangements. I have received one representation on the level of funding for the scheme.