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Angus MacKay announces European structural funding for the South of Scotland

05/04/2001

The outstanding conservation area surrounding Dumfries' Crichton Business Park; a programme to help companies in Dumfries and Galloway develop new export markets and the creation of a theatre and cinema venue in Peebles are just some of the projects in the south of Scotland to benefit from the latest round of European Structural Funding.

Minister for Finance and Local Government, Angus MacKay today unveiled £6.5 million from the Scotland Objective 2 Programme to encourage small and medium sized enterprises (SMEs) in the area.

Speaking to Parliament as part of a debate on Structural Funding, Mr MacKay said:

"I am pleased to announce these European Structural Fund grants which I hope will help businesses in the south of Scotland. The South and, in particular Dumfries & Galloway, is going through a very difficult period at the moment because of foot and mouth. The injection of £6.5 million of EU money will underpin £16 million worth of investment in projects."

"We hope that this funding will boost the local economy and help to bring about a recovery in the area as quickly as possible. This can only be good news for the people who live in the south and who have had to face very trying times."

The Minister continued by outlining key tourism projects that are currently under development in the area:

"There are some very good tourism projects in the pipeline, and we are working very closely with partners to ensure that these projects can be further developed to ensure that they respond to the quite exceptional circumstances the South is having to deal with.

"We look forward to approving additional projects which contribute to job creation and further support the tourism industry, both in Dumfries and Galloway and the Borders, later in the year."

Drew Tulley, Convener of Scottish Borders Council, said:

"The announcement of these awards is excellent news for the Borders. The development of the business creation centre at Ettrick Mill will provide facilities for business start-ups which are very much needed here in the Borders. The Eastgate Theatre and Arts Centre will provide a tremendous boost to the economy of the Peebles area as it will close a gap in provision in an area heavily reliant on tourism.

"These awards demonstrate that the South of Scotland Partnership is working together to develop quality projects that can attract significant support from Europe. The European Objective 2 programme is very significant to the Borders and the South of Scotland. It ties in very closely to the Scottish Borders Economic Development strategy, New Ways.

"I believe that the awards announced today will be the first in a series of projects which will be of long-term benefit to promoting and developing the economic revival of the South of Scotland and the Borders in particular."

John Forteath, Leader of Dumfries and Galloway Council, said:

"Dumfries and Galloway Council is pleased to see the first grant awards under the new programme. We believe the South of Scotland EU Programme can make a major contribution towards the continued economic development of the area. Of course, because of foot and mouth disease the area is going through a difficult time. We look forward however to working with Partners on a regeneration strategy to which current and future grant awards will contribute."

Examples of successful projects include:

• The Crichton Business Park in Dumfries

• A programme to help businesses in Dumfries and Galloway to develop new export markets

• Ettrick Mill Business Creation Centre in Selkirk
• A childminding business development programme in the south of Scotland
• The Eastgate Theatre and Arts Centre in Peebles
• and business and community projects from Stranraer to Eyemouth.

BACKGROUND

1. The South of Scotland Objective 2 Programme 2000-2006 was approved in principle by the European Commission in November 2000. It is worth €70 million over the period. The figure includes transitional funds for the Tweeddale area of the Borders which was the only part of the South of Scotland area that lost full status from the previous Objective 5b Programme.

2. Some of the successful projects include:

Business Creation Centre, Ettrick Mill, Selkirk - the re-development of the Ettrick & Yarrow Spinners Mill will create a business centre with managed workspaces, small incubation units and training facilities to encourage new businesses.

The Eastgate Theatre and Arts Centre - the funding will contribute towards the provision of a flexible 256 seater and cinema, a studio and other facilities.

The Crichton Businesses Park, Dumfries and Galloway, will use the funding to improve the use of public transport and to reduce traffic both in and to the sire which is an outstanding conservation area. The project is due for completion in June 2002.

Action Export - Market Development Programme, Dumfries & Galloway -will provide assistance to more than 240 small and medium-sized enterprises looking to export and develop new markets for their products and services.

For a full list of successful projects please contact Chris Bergin: 0131 244 2967

Priority One

Priority Two

Priority Three

News Release: SE0926/2001
5 Apr 2001