§ Mr. Michael Forsythasked the Secretary of State for Scotland if he will state for the past five years the return on capital achieved by the Highlands and Islands Development Board on its commercial activities.
§ Mr. John MacKayThe only activity of the Highlands and Islands Development Board which could be regarded as commercial in character is the provision of factories. The board estimates that the rate of return on capital expenditure on factories has been as follows:364W
Per cent. 1978–79 1.96 1979–80 1.80 1980–81 1.72 1981–82 2.02 1982–83 2.08 These rates of return are based on rents received and the value of rent-free periods expressed as a percentage of cumulative capital expenditure on factories completed. The figures do not take into account repairs, maintenance, administration or depreciation.
These statistics reflect the fact that the board. as an incentive to development, generally constructs factories only where the private sector has shown no interest in doing so, normally because the high cost of building in most areas of the highlands and islands and the relatively low rents achievable depress potential rates of return well below commercially acceptable levels.
§ Mr. Michael Forsythasked the Secretary of State for Scotland if he will state for each year since its formation the profit or loss made by the Highlands and Islands Development Board on its commercial property revenue account.
§ Mr. John MacKayUntil 1980–81 income from and expenditure on the board's property letting activities were accounted for, but not separately shown, within the board's former income and expenditure account. Information on the commercial property revenue account as requested, for 1981–82 and 1982–83 only, is however contained in the board's annual accounts for these years, copies of which are in the Library of the House.
§ Mr. Michael Forsythasked the Secretary of State for Scotland if he will state for the Highlands and Islands Development Board (a) the net surplus or loss on the disposal of assets and investments within the general revenue account and (b) the net surplus or loss on the disposal of assets and investments within the commercial property revenue account for each year since the board's formation.
§ Mr. John MacKayThe information requested on the general revenue account — formerly the income and expenditure account—is contained in the Highlands and Islands Development Board's annual accounts, copies of which are in the Library of the House. A commercial property revenue account was included for the first tine in the board's 1981–82 annual accounts, activities to which this account relates having been previously included but not separately shown within the board's income and expenditure account. The information requested on the commercial property revenue account for the years 1981–82 and 1982–83, is also contained in the board's annual accounts.
§ Mr. Michael Forsythasked the Secretary of State for Scotland if he will detail the ex gratia payments referred to in the Highlands and Islands Development Board's statement of source and application of funds for the year ending 31 March 1983.
§ Mr. John MacKayThe Highlands and Islands Development Board has been asked to assemble this information and my right hon. and noble Friend the Minister of State will write to my hon. Friend as soon as possible.