To ask the Scottish Executive, further to the answer to question S2W-20846 by Nicol Stephen on 13 December 2005, whether it will publish the payments broken down into their constituent parts.
The figures provided in the answer to S2W-20846 can be broken down further from 2002-03 to 2004-05 as shown. Definitions of each element of these payments have also been provided.
Due to a change in ledger systems in 2001, this information can not be easily obtained for the earlier years. However, my officials are currently looking into this and I will write to the member once this information becomes available.
Year | 1 Subsidy (£000) | 2 Write Offs (£000) | 3 Loans Repurchased (£000) | 4 First Loss Claims (£000) | 5 First Loss Repayments (£000) | 6 Adjustment (£000) | Total (£000) |
2002-03 | 8,610 | 95 | 25 | 2,349 | -108 | -326 | 10,645 |
2003-04 | 5,611 | 162 | 95 | 1,495 | -221 | -90 | 7,052 |
2004-05 | 5,075 | 193 | 41 | 1,134 | -217 | 999 | 7,225 |
Notes:
Column 1 – The subsidy isthe payment made to the purchasing banks to cover the difference between thecommercial rate of interest the banks would normally charge and the rate ofinflation they are required to charge by the regulations.
Column 2 – Payments are madeto the purchasing banks for loans which are written off due to age or death.
Column 3 – Shows paymentsmade for loans which are “repurchased” and returned to the government portfoliofor reasons of permanent disability or being medically unfit for work.
Column 4 – First lossclaims, reimburse the purchasing banks for loans which become 24 months or morein arrears, as these loans no longer attract the interest rate subsidy.
Column 5 – First lossrepayments are deducted from the total Executive payment as loan repayments canstill be received after the first loss claim is put in place, i.e. after thebad debt is written off.
Column 6 – Adjustments canbe made to the figures in respect of year-end reconciliations between what hasbeen paid by the DfES and the devolved administrations. Adjustments can also bemade to reflect accruals and differences in spend across financial years.