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Local Enterprise Councils

Volume 167: debated on Monday 12 February 1990

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To ask the Secretary of State for Scotland if he will make a statement on the procedures to be used to monitor expenditure by local enterprise councils.

Once in operation, local enterprise companies will work to annual budgets agreed initially with the Training Agency and the Scottish Development Agency, and subsequently with Scottish Enterprise. Monitoring of expenditure within the agreed budgets will primarily be the responsibility of the local enterprise company itself. In addition, prior to the vesting of Scottish Enterprise, the Scottish Development Agency and the Training Agency will jointly monitor local enterprise companies' performance through the local enterprise company unit; and thereafter, Scottish Enterprise will have this function. Such monitoring will be selective and will focus on propriety and whether management arrangements agreed with the local enterprise company in its business plan are functioning effectively and are promoting value for money.