To ask the Scottish Executive what progress it is making with the creation of a co-operative development agency.

We have now agreed the framework of the new Co-operative Development Agency (CDA). The CDA will have an overarching enterprise focus to help in the promotion, creation and development of dynamic and sustainable co-operatives, and more generally to help maximise the contribution co-operatives can make to growing the Scottish economy. It will provide a means to promote the co-operative business model as a real alternative to other business structures and, at a practical level, it will deliver advice and information to new and growing co-operatives businesses – Scotland wide. The Executive will fund the new agency by allocating up to £3 million for this work over the next three years.

The agency will be incorporated within the enterprise networks to ensure an appropriate level of integration with the broader business support structure. It will, however, have its own identity as a subsidiary company of the networks and operate with an advisory board, including representatives from the co-operative sector.

We have already started our detailed discussions with Scottish Enterprise and Highlands and Islands Enterprise on the establishment of the CDA and we are keen to set the body up as quickly as possible.