§ Mr. SwinneyTo ask the Secretary of State for Scotland how much public money has been spent in each of the last five years, in real terms, on(a) economic diversification in rural areas, (b) agricultural support indicating what percentage was from EU funds and (c) rural housing; what assessment he has made of the advantages of providing low-interest Government loans to encourage economic diversification in rural Scotland; and if he will make a statement. [68004]
§ Mr. Macdonald[holding answer 1 February 1999]: Information on Central Government funds spent in each of the last five financial years is as follows:
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(a) Spending related to Economic Diversification in Rural Areas £million Objective 1 and Objective 5b Programmes1 Programme Scottish Enterprise and Highlands and Islands expenditure2 Total 1993–94 4.0 79.3 83.3 1994–95 4.0 80.3 84.3 1995–96 3.6 79.1 82.7 1996–97 2.5 74.0 76.5 1997–98 3.6 77.0 80.6 1Total expenditure under the Rural Enterprise Programme, Highlands and Islands Agricultural Programme (excluding Crofting Township Development Scheme) and the Rural Diversification Programme.
2 The enterprise agencies, Highlands and Islands Enterprise (HIE) and Scottish Enterprise (SE), do not attribute expenditure specifically to economic diversification. The HIE component of the aggregate figures above is based on actual spending under HIE's Growing Businesses programme which has as its objective an increase in the number, scale and competitiveness of businesses in the HIE area. All programme activities contribute to economic diversification. SE estimates that 16 per cent. of its project expenditure is spent in rural areas. The figures include an element of spend which is indicative of the level of support SE gives to businesses in rural localities within its area of operations. Note:
Figures are at constant 1997–98 prices.
(b) Agricultural Support
Government spending on agricultural grants and subsidies is set out in the publication "Scottish Agriculture Output, Input and Income Statistics", copies of which are in the Library of the House. All of this expenditure is counted as UK public expenditure. In any year, the European Union's financial contribution to this spending is in the range of approximately 80–90 per cent.
In addition to this support, the Government made available an additional £46 million in December 1997 and £35 million in November 1998.
(c) Central Government expenditure on Rural Housing £million Housing1 1993–94 131 1994–95 132 1995–96 136 1996–97 111 1997–98 95 1 These figures include Housing Support Grant, capital allocations made through the Housing Revenue Account (excluding receipts), Scottish Homes investment programme and the Capital Receipts Initiative (1997–98 only). They exclude personal subsidies such as Housing Benefit, Income Support for Mortgage Interest and Mortgage Interest Tax Relief. Figures are at constant 1997–98 prices. (d) Low Interest Loans
Low interest loans are only one of a package of measures (including grants and equity investment) which the enterprise networks can use to provide financial support for enterprise and business development. The package of assistance designed for each case reflects the needs and opportunities of the individual applicant. The networks do not provide financial support where loan finance could otherwise be secured from the private sector.From 1 July 1999, economic diversification, agriculture and housing will be matters for the Scottish Parliament: relations with the EU will continue to be reserved to Westminster.