Delay in opening of new investment bank

The creation of a new Scottish Investment Bank has been delayed, it has emerged.

It is almost two years since First Minister Alex Salmond announced the new bank aimed at stimulating economic growth by bringing together existing funds and new sources of European funding for business to bid for.

Finance secretary John Swinney has pledged it would be up and running by the end of this month.

But Scottish Enterprise chairman Crawford Gillies and chief executive Lena Wilson warned Holyrood's economy committee yesterday this would not happen.

Tory MSP Gavin Brown asked: "If a business in the Lothians comes to me and says we'd like to go to the Scottish Investment Bank, will they be able to make an application before the end of January? Will the bank be open?"

Both Mr Gillies and Ms Wilson replied: "No."

Mr Gillies said he hoped to announce a fund manager in the next couple of weeks.

"Presumably, it will then take a couple of weeks further for that organisation to actually have its forms ready and be distributing them," he said.