To ask the Scottish Executive what progress is being made in processing regional selective assistance applications from rural areas. (S1O-2355)

All applications for regional selective assistance are processed as quickly as possible whatever the location of applicant companies. Following the agreement in July this year of the new assisted areas map, firms in rural areas such as the Borders are already benefiting from offers of regional selective assistance.

Does the minister agree that the recent announcement, reported locally, of an RSA grant of £1 million to Keltek in Kelso in my constituency, creating over 100 jobs, is very welcome? Does he also agree that RSA grants are appropriate for textiles firms?

It would be wrong for me to comment on individual applications before we have the final agreement of the company, but I know that Keltek has ambitious growth plans. The Executive is keen to help companies develop, not only in the electronics sector but in textiles and all other sectors. The proposals are good for the Borders and for the rest of Scotland.

Will the minister confirm that RSA is available to indigenous companies as well as to inward investors, and to companies that need to invest to protect existing jobs as well as to those that are investing to create new employment? Is the Executive taking any initiatives to dispel the perception that only inward investors qualify for RSA?

I will take an initiative now to help to dispel that view. I know that there is heated argument on this matter. The Executive wants inward investment but we also want to give priority to indigenous companies. The rules for RSA do not differentiate—indigenous companies apply and are successful in their applications. I agree that we need to get that message across and do more to encourage indigenous growth.