HC Deb 05 December 1986 vol 106 c829W
Mr. Gordon Brown

asked the Secretary of State for Scotland at what minimum cost level he requires to approve Scottish Development Agency investments where private sector funding is lower than 60 per cent. of project finance; and what changes in Scottish Office guidelines have been made in this respect since 1979.

Mr. Lang

A threshold in this particular form does not exist in the Government's current industrial investment guidelines for the agency; nor did it in those previous to 1980. The current guidelines do, however, require the agency to seek the Secretary of State's approval inter alia for any investment which would bring the agency's total investment in a company both to more than £150,000 and to more than 50 per cent. of the funding of the company from all sources. A copy of the guidelines was placed in the Library of the House when they were issued in 1980.

Mr. Gordon Brown

asked the Secretary of State for Scotland if he will provide the figures for (a) budget and (b) actual expenditure of the Scottish Development Agency in 1985–86.

Mr. Lang

The agency's approved budget (defined as its gross grant-in-aid plus its net provision of investment funds) was £128.0 million in 1985–86. On this definition actual expenditure, which was augmented by additional unanticipated grant-in-aid receipts which the agency received approval to retain, was £131.1 million. Taking account also of investment income actual gross expenditure was £136.6 million.

Mr. Gordon Brown

asked the Secretary of State for Scotland what proportions of the Scottish Development Agency expenditure from 1978 up to 1986 and budget for 1986–87 went on industrial investment; and if he will provide the figures for industrial investment at 1986 prices.

Mr. Lang

The information is as follows:

Gross expenditure on industrial investment
Year Outturn prices £ million 1986 prices £ million As percentage of total expenditure
1978–79 5.5 10.7 8.5
1979–80 8.5 14.1 10.4
1980–81 7.1 10.0 7.0
1981–82 6.6 8.4 6.4
1982–83 12.7 15.1 10.0
1983–84 11.2 12.8 9.2
1984–85 10.8 11.8 8.8
1985–86 8.1 8.3 5.9
11986–87 9.0 9.0 7.0
1Estimate.

Note:

The agency's total expenditure is defined as gross grant-in-aid, plus gross investment.