§ Mrs. EwingTo ask the Secretary of State for Scotland what was the Scottish Office expenditure(a) in cash terms and (b) at current prices on (i) the Health Care International hospital in Clydebank and (ii) developing the land. [25421]
§ Mr. Kynoch[holding answer 16 April 1996]: The Scottish Office itself paid £18.6 million in regional selective assistance—of which £1 million was subsequently recovered—to Health Care International (Scotland) Ltd (HCI). The company also, however, received other support from public funds. In addition, the Scottish Development Agency and Scottish Enterprise incurred expenditure on physical works not specific to HCI to render the relevant site safe and capable of development as part of the Clydebank enterprise zone.
The financial support from pubic sources to HCI, and the expenditure on physical works not specific to HCI, were set out in cash terms in appendix 5 of the memorandum of the Comptroller and Auditor General annexed to the report of the Committee of Pubic Accounts on Health Care International (Scotland) Ltd (HMSO, House of Commons paper 32). The information is reproduced in the table, together with recalculations of the expenditure concerned to March 1996 prices. For a few items expenditure took place over a period of months and is not readily attributable to a single month: in these cases the recalculation to March 1996 prices has been based on the average price for the period concerned.
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Health Care International (Scotland) Ltd. Financial Support from public sources Direct Support £ Month disbursed £ (at March 1996 prices) (i) Shares Class A Ordinary Shares bought from Scottish Enterprise 500 July 1991 566 Class A Preference shares bought by Scottish Development October 198773,615 Agency converted from development loan advanced 1987 50,000 Scottish Development Agency: release towards consultants' January 1988-July 1991 1,640,016 fees 1,285,302 Scottish Enterprise: final purchase July 1991 64,698 July 1991 73,257 GE Capital position taken over by Scottish Enterprise Ordinary Shares 1,107 £3 million, March 1992 1,227 Preference Shares 5,500,000 £2.501 million, April 1992 6,003,242 Interest and Fees 503,804 August 1993 540,172 Less: Disposal to British Aerospace plc (5,501,107) (August 1993) (5,898,215) (ii) Loans and Grant LEG-UP Loan (Scottish Development Agency/Scottish (Enterprise) March 1994 4,252,632 Enterprise) 4,000,000 Regional Selective Assistance Grant (Scottish office Industry 1[December 1991 to September 1994] 20,101,449 Department) 18,600,000 (iii) Physical Works-Specific to HCI Value of Land 900,000 July 1991 1,010,058 Scottish Enterprise Contribution 500,000 March 1992 554,133 Dunbartonshire Enterprise Contribution 1,600,000 October 1991-March 1992 1,784,540 (iv) Other Support Dunbartonshire Enterprise Training and part running costs Healthcare Liaison Office 108,500 [from financial year 1992–1993 to financial year 1994–1995: not readily attributable to particular dates] 115,775 Total direct support 27,612,804 £30,261,467 Physical Works not Specific to HCI Scottish Development Agency: Site Works 6,700,000 February 1988-December 1989 March 1992-June 1994: £2 million; June 1994-January 1996; £0.5 million; £0.2 million retention not yet paid out2,867,620 9,113,538 Scottish Enterprise: Additional Asbestos and Methane treatment 2,700,000 Total for physical works not specific to HCI £9,400,000 £11,981,158 1 December 1991: £2 million; April 1992; £2 million; December 1992: £4 million; April 1993; £4 million, October 1993; £3 million; February 1994; £1.3 million; February 1994; £1.3 million; September 1994: £1 million (this final payment was subsequently recovered).