Chamber and committees

Transport Scotland hasresponded to the Olympic Delivery Authority’s consultation on the draft travelplan for the London 2012 Olympic Games and Paralympic Games.

There is no strict legal definitionof the term “phoenix companies”. Each application for RSA is assessed on its ownmerits, against all of the scheme criteria. In assessing applications we considera range of information including the background experience of key personnel.

Prior to submitting an RSA applicationwe encourage companies to discuss the details of their projects with us to preventthem from undertaking any unnecessary work in the early stages of the process.

The shortest turnaround, in thelast three years, for obtaining an offer of RSA from application to decision, isthree days. However, this does not take account of the work carried out prior tothe application being made.

In terms of receipt of funding,I refer the member to the answer to question S2W-32579 on 27 March 2007. All answersto written parliamentary questions are available on the Parliament’s website thesearch facility for which can be found at http://www.scottish.parliament.uk/webapp/wa.search.

All Regional Selective Assistance(RSA) grant agreements include legally enforceable conditions under which we canseek full or partial recovery of grant monies paid, should breaches of the grantagreement arise. Details of companies, in the last five calendar years, which havebecome subject to a legal process, after receiving RSA, are listed in the answerto question S2W-32570 on 29 March 2007. It shows the amount of grant to be recovered and anysubsequent recovery. At the time a business goes into legal process there is nolegal requirement for the administrator or liquidator to confirm how many jobs werelost at the time of their appointment.All answers to writtenparliamentary questions are available on the Parliament’s website the search facilityfor which can be found at http://www.scottish.parliament.uk/webapp/wa.search.

Student support is a wholly devolved matter and the student supportsystem in Scotland reflects decisions taken by the Scottish Executive in considerationof our particular circumstances. The systems that have been developed by each countrytake into account the differing situations facing students in that country, whichinclude the differing approaches to living cost support and tuition fees.

The new tier of RSA for SMEsand simplification of the grant structure is aimed at encouraging as manyeligible small and medium-sized enterprises (SME) as possible to access grant. AllRSA applications will be assessed against the scheme criteria. As at present,the level of scrutiny will depend on the amount of grant requested but therewill be no reduction in the effectiveness of checks as a result of the newarrangements.

In the last five calendar yearsto end December 2006, the Executive has received 1,238 applications for RSA, 414of which have their headquarters outside Scotland.

When applying for RSA grantswe require directors of companies to declare whether they have been, (a)disqualified from being a company director; (b) bankrupt; (c) subject to anyform of insolvency procedures such as receivership, liquidation and administrationand (d) requested to repay a grant under any Government scheme. Where necessarywe would seek to obtain additional information on directors or companies fromexternal sources including Companies House.

All applications for RSA areassessed against the scheme criteria by Scottish Executive officials. Thisincludes an assessment of viability, need for support and economic benefit. Additionalinformation can also be requested on the company and/or the directors dependingon the responses provided in the application form regarding previousdisqualifications, bankruptcies, insolvency actions and requests for repaymentgrant under any government schemes. Officials also ensure that details areconsistent with information held at Companies House.

Applications for RSA areassessed, against the scheme criteria, by Executive Officials in the Innovationand Investment Grants unit. The scheme criteria require that anassessment be made of viability, need for support and economic benefit. Inassessing applications, officials will, if necessary seek to obtain additionalinformation on directors and companies from external sources. Each applicationis assessed on its own merits but the larger the grant the greater thescrutiny. We do offer a more streamlined process for applications up to£250,000, but in cases over £250,000, the Scottish Industrial DevelopmentAdvisory Board provides independent advice before grant is offered.