- Asked by: Tricia Marwick, MSP for Mid Scotland and Fife, Scottish National Party
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Date lodged: Wednesday, 15 May 2002
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Current Status:
Answered by Iain Gray on 29 May 2002
To ask the Scottish Executive whether Scottish Coal, the parent company, were required to act as guarantor for Scottish Coal (Deep Mining) Ltd as part of the agreement which Scottish Enterprise entered into to underwrite bank borrowings.
Answer
Mining (Scotland) Limited, the parent company of Scottish Coal (Deep Mine) Ltd, did contribute to the refinancing package agreed for Scottish Coal (Deep Mine) Ltd in April 1999, and, prior to that, had invested substantially in the development of the company's Longannet and Kincardine mining operations, but were not asked to act as guarantor for the additional bank borrowing identified as necessary to meet the company's cash flow requirements in April 1999.
- Asked by: Tricia Marwick, MSP for Mid Scotland and Fife, Scottish National Party
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Date lodged: Wednesday, 15 May 2002
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Current Status:
Answered by Iain Gray on 29 May 2002
To ask the Scottish Executive when Scottish Enterprise entered into an agreement with Scottish Coal (Deep Mine) Ltd to provide a guarantee to underwrite bank borrowings and whether this agreement was approved by ministers.
Answer
In June 1999, Scottish Enterprise provided a guarantee to underwrite £5.4 million of bank borrowing by Scottish Coal (Deep Mine) Ltd in order to allow the company to continue trading. The provision of the guarantee was approved by Scottish Office ministers. Subsequent adjustments in the amount of the guarantee were approved by Scottish Executive ministers.
- Asked by: Tricia Marwick, MSP for Mid Scotland and Fife, Scottish National Party
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Date lodged: Wednesday, 15 May 2002
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Current Status:
Answered by Iain Gray on 28 May 2002
To ask the Scottish Executive whether the directors of Scottish Coal (Deep Mine) Ltd were required to give a personal guarantee to financial institutions to underwrite borrowing as a condition of the guarantee from Scottish Enterprise.
Answer
No.
- Asked by: Tricia Marwick, MSP for Mid Scotland and Fife, Scottish National Party
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Date lodged: Wednesday, 15 May 2002
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Current Status:
Answered by Iain Gray on 28 May 2002
To ask the Scottish Executive how many companies Scottish Enterprise has provided a guarantee to underwrite bank borrowing, how many such companies have gone into liquidation and what the cost to Scottish Enterprise has been of repayments to financial institutions in respect of such liquidations, all in each of the last three years.
Answer
The information requested is set out in the following table. In these three years none of the companies whose bank borrowings had been guaranteed by Scottish Enterprise were placed in receivership.
| As at 31 March |
Scottish EnterpriseGuaranteed Bank Borrowings | 2002 | 2001 | 2000 |
No. of Companies | Value(£000) | No. of Companies | Value(£000) | No. of Companies | Value(£000) |
Guaranteed Loan and Bank Overdrafts | 2 | 4,539 | 2 | 4,539 | 4 | 4,689 |
Bank Mortgage Guarantee Scheme | 8 | 1,891 | 11 | 2,188 | 16 | 2,574 |
- Asked by: Tricia Marwick, MSP for Mid Scotland and Fife, Scottish National Party
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Date lodged: Wednesday, 15 May 2002
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Current Status:
Answered by Iain Gray on 28 May 2002
To ask the Scottish Executive under what conditions Scottish Enterprise agreed to act as guarantor for Scottish Coal (Deep Mine) Ltd.
Answer
The conditions that were attached by Scottish Enterprise to the offer of a bank guarantee to underwrite Scottish Coal (Deep Mine) Ltd's borrowing are a commercially confidential matter between Scottish Enterprise, the company and the Royal Bank of Scotland.
- Asked by: Tricia Marwick, MSP for Mid Scotland and Fife, Scottish National Party
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Date lodged: Friday, 10 May 2002
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Current Status:
Answered by Andy Kerr on 23 May 2002
To ask the Scottish Executive whether a lump sum payment was paid to Mr Frank McAveety when he ceased to be a junior minister and, if so, how much the payment was.
Answer
Yes. A lump sum was paid to Mr Frank McAveety in accordance with Article 6 of The Scotland Act 1998 (Transitory and Transitional Provisions) (Grants to Members and Officeholders) Order 1999.
- Asked by: Tricia Marwick, MSP for Mid Scotland and Fife, Scottish National Party
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Date lodged: Monday, 08 April 2002
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Current Status:
Answered by Iain Gray on 13 May 2002
To ask the Scottish Executive whether it approved the arrangement entered into by Scottish Enterprise to act as guarantor for Mining (Scotland) Ltd.
Answer
Yes.
- Asked by: Tricia Marwick, MSP for Mid Scotland and Fife, Scottish National Party
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Date lodged: Monday, 08 April 2002
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Current Status:
Answered by Iain Gray on 13 May 2002
To ask the Scottish Executive how much Scottish Enterprise invested in the Longannet coal mine and what the prospects are for the recovery of the money.
Answer
In June 1999, Scottish Enterprise provided a guarantee to underwrite £5.4 million of bank borrowing by Scottish Coal (Deep Mine) Ltd in order to allow the company to continue trading. The level of this guarantee was varied on several occasions in line with the company's bank borrowing requirements.Under the terms of the guarantee agreement, Scottish Enterprise has now paid out £4.514 million to the Royal Bank of Scotland.
- Asked by: Tricia Marwick, MSP for Mid Scotland and Fife, Scottish National Party
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Date lodged: Monday, 08 April 2002
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Current Status:
Answered by Lewis Macdonald on 7 May 2002
To ask the Scottish Executive whether discussions took place between it and Her Majesty's Government prior to 1 March 2002 in regard to the proposal to reclaim #4.5 million for the development of Longannet coal mine.
Answer
The Scottish Executive is in regular contact with the UK Government on a wide range of issues, including energy policy. All subsidies granted to the Scottish Coal Company over the last two years in respect of Longannet mine were paid by the Department of Trade and Industry under its UK Coal Operating Aid Scheme.
- Asked by: Tricia Marwick, MSP for Mid Scotland and Fife, Scottish National Party
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Date lodged: Monday, 08 April 2002
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Current Status:
Answered by Lewis Macdonald on 7 May 2002
To ask the Scottish Executive whether discussions have taken place with Her Majesty's Government about the future of Longannet coal mine since 29 March 2002.
Answer
The Scottish Executive is in regular contact with the UK Government on a wide range of issues, including the future of Longannet deep coal mine.