§ Mr. McMasterTo ask the Secretary of State for Scotland what criteria he applies in determining whether an area should be awarded enterprise zone status; which areas currently meet the criteria; which areas currently enjoy enterprise zone status; if he has any plans to review the criteria; if he has any plans to make further awards; and if he will make a statement.
§ Mr. Stewart[holding answer 27 January 1993]: Enterprise zones are essentially policy instruments to encourage the physical and economic regeneration of areas with particular environmental, physical and economic problems. Since 1987, following an interim evaluation of the enterprise zone experiment, it has been Government policy that enterprise zone designation is an instrument to be used only in exceptional circumstances, where the costs can be justified and where there are no alternative, more cost-effective measures available.
The case for enterprise zone designation for an area is measured against three basic criteria, broadly the nature and severity of problems in the area; the likely cost-effectiveness of enterprise zone designation compared with other available measures; and the extent to which authorities and agencies can ensure the success of the zone. If these basic criteria are met, the case is considered in greater depth by reference to a range of more detailed issues. Enterprise zone arrangements are, however, kept under constant review. European Commission approval is required for any designation proposals.
Enterprise zones are currently designated in Inverclyde, lnvergordon and Tayside in Scotland. Orders were laid before Parliament on 12 January proposing enterprise zone designation for sites in Lanarkshire with effect from 1 February 1993.
My right hon. Friend has no plans for further designations in Scotland other than as set out in the orders for Lanarkshire referred to above.