3.Scottish Enterprise was established in April 1991 by the Enterprise and New Towns (Scotland) Act 1990 to further the economic development of Scotland. Section 25 (2) of that Act limits the aggregate amount of central government funding that Scottish Enterprise can receive. This limit is defined as the aggregate amount outstanding (AAO). The AAO is made up of the following elements (with the level of funding at 31 March 1998 given in parenthesis): the general external borrowings of Scottish Enterprise and its subsidiaries (£3million); sums issued by the Secretary of State, or the Treasury, in fulfilment of guarantees (nil); loans guaranteed by Scottish Enterprise or its subsidiaries (£0.3 million); and payments from the Secretary of State consisting of grant-in-aid less administrative expenses, plus Voted Loans payments (£2,470 million). The current limit stands at £3,000 million and it is estimated that this will be reached around June 1999. The purpose of this Act is to raise this limit.
Background