§ Dr. David ClarkTo ask the Secretary of State for Scotland what the current limits are on the borrowing powers of Scottish Enterprise. [62954]
§ Mr. DewarThere is no specified limit on the borrowing powers of Scottish Enterprise. However, Section 25(2) of the Enterprise and New Towns (Scotland) Act 1990 limits the aggregate amount of central government funding that Scottish Enterprise can receive including its general external borrowings. The limit is defined as the aggregate amount outstanding (AAO) and was set by the Scottish Enterprise (Aggregate Amount Outstanding) Order 1997 at £3,000 million. The AAO is made up of the following elements (with the level of funding at 31 March 1998 given in parenthesis): sums issued by the Secretary of State or the Treasury, in fulfilment of guarantees (nil); loans guaranteed by Scottish Enterprise or its subsidiaries (£0.3 million); payments from the Secretary of State consisting of grant-in-aid less administrative expenses plus voted loan payments (£2,470 million); and the general external borrowings of Scottish Enterprise and its subsidiaries (£3 million).