§ Mr. WelshTo ask the Secretary of State for Scotland what standard guidelines are in place for Scottish Enterprise, Highlands and Islands Enterprise and the local enterprise companies regarding the assessment of(a) the suitability of companies for public investment and (b) the safeguards which should be taken when investing in ventures considered high risk. [4177]
§ Mr. KynochHighlands and Islands Enterprise, and its network of local enterprise companies, are required to operate in accordance with a management statement and a manual of project and programme rules which offer guidance on the financial, strategic and operational framework within which the organisations operate. The importance of appraisal, including—where the success of a case or project depends upon the commercial viability of an enterprise—the need to undertake a separate financial appraisal of that enterprise and its prospects, as well as the need for an assessment of the risks and uncertainty associated with particular cases or projects, is emphasised in various parts of these documents.
Scottish Enterprise and its network of local enterprise companies operate under a similar regime.