Highlands and Islands Development Board

HC Deb 17 February 1986 vol 92 cc17-8W

Mr. Kennedy

asked the Secretary of State for Scotland whether, in arriving at the proposed level of grant-in-aid provision for the Highlands and Islands Development Board in 1986–87, an allowance was made for profits which the board was anticipating to receive from the realisation of any shareholdings.

Mr. John MacKay

I refer the hon. Member to the reply given to him by my hon. Friend the Parliamentary Under-Secretary of State for Industry and Education in Scotland on 7 February.

Mr. Kennedy

asked the Secretary of State for Scotland if he will express the proposed level of grant-in-aid provision for the Highlands and Islands Development Board in 1986–87 in terms of percentage change in real terms compared with the total for 1985–86; and if he will make a statement.

Mr. John MacKay

The change in real terms is -13 per cent. The reduction is due mainly to the impending completion of the integrated development programme for the Western Isles.

Mr. Kennedy

asked the Secretary of State for Scotland whether his proposed level of grant-in-aid provision for the Highlands and Islands Development Board in 1986–87 is subject to ongoing review and adjustment in the light of (a) unanticipated levels of profit accruing to the board through the realisation of share-holdings, (b) unanticipated levels of applications for such assistance and (c) evidence that all projects deemed to be viable in the opinion of the board are unlikely to progress due to insufficient grant-in-aid provision.

Mr. John MacKay

Grant-in-aid for the Highlands and Islands Development Board is contained within a cash-limited vote. The board has to control is expenditure to keep within the gross expenditure limit set and must, therefore, continuously assess its priorities and manage its programmes of assistance accordingly. The board's expenditure, commitments and income are monitored continuously throughout the year by the Industry Department for Scotland. Adjustments (both upward and downward) have been made in the past but any adjustment must have regard to the wider public expenditure implications.