The Scottish Government

This item was published during the term of a previous administration that ended in April 2007

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Regional Selective Assistance grants

27/01/2004

A herbal medicine manufacturer and an electronic and software design company are just two of 38 businesses to accept offers totalling over £7 million of Regional Selective Assistance (RSA) grants from October to December last year.

Figures contained in the latest RSA quarterly report, published today, show that the grant offers would help projects planned to create or safeguard over 1,000 jobs and with a planned investment of £30 million.

The figures also show:

• Over 80 per cent of firms accepting grant offers this quarter were UK owned, with Scottish owned firms accounting for 70 per cent of accepted offers.
• 15 of the businesses have been offered the New Deal grant premium. This gives firms attracting RSA an additional incentive of £5,000 for each person employed from the New Deal Scheme and retained for a period of two years.

Deputy Minister for Enterprise Lewis Macdonald called on further eligible Scottish companies to use RSA as a way of growing and developing their businesses.

He said:

"From software development to the manufacture of herbal medicine and cookers, RSA is helping to nurture our home-grown businesses as well as attracting inward investment.

"It is particularly encouraging that so many firms intend to employ and retain staff under the New Deal scheme. These businesses will benefit from the RSA New Deal Premium which we introduced following the review of RSA in 2001/2002. I hope that this will encourage other businesses to consider employing a New Deal trainee or graduate.

"I would encourage other Scottish firms to take a look at the RSA Scotland website and consider what the scheme can do to support their future development and growth."

Examples of companies listed in the latest RSA quarterly report include:

• S3 Interactive Ltd is a start up to be based at Clydebank Business Park. It will be involved in the repair and recycling of electrical consumer products including mobile phones, digital cameras, laptop computers, digital satellite televisions, games consoles and personal organisers. It also hopes to offer clients a dedicated internet auction site, technical support and a returns management service. An RSA offer of £190,000 (including up to £25,000 in New Deal Premium) has been accepted by the company for a project which aims to create 35 new jobs.
• Kschocolat Ltd produces and distributes high quality chocolate products including hand made chocolates which are sourced from around the world as well as its own brand of chocolates. These are presently sold from its retail outlets in Princes Square and Merchant City, Glasgow and Ocean Terminal, Edinburgh. RSA of £32,000 was offered to assist with the costs involved in the purchase of a new production line and additional equipment. Four new jobs are expected to be created in Glasgow.
• Aga Foodservice Equipment Ltd is a leading cooking equipment supplier for the commercial and domestic markets as well as being the leading UK interior finishes company. The company accepted an RSA offer of £1.2 million to modernise its production process. This will also involve relocating its Larbert manufacturing operation to Stirling.The project is expected to safeguard 260 jobs.
• Thales Electronic System Solutions Ltd is part of the multinational Thales group, which comprises Defence, Aviation and IT & Services divisions. As part of IT & Services, the company has recently been established to provide wireless system design services on a global basis to a range of vertical markets. An RSA offer of £170,000 was accepted towards a project which is expected to create 19 new jobs.
• Bioforce (UK) Ltd based in Irvine, manufactures and distributes herbal and pharmaceutical medicines, organic food products, supplements and body care products throughout the UK and Ireland. An RSA offer of £170,000 was accepted toward the expansion of the facility. The project is expected to create 25 new jobs.

Regional Selective Assistance (RSA) is the main national scheme of financial assistance to industry. It provides discretionary grants for investment projects that will create or safeguard jobs in Assisted Areas - areas designated for regional aid under European community law. The scheme is administered by the RSA Scotland unit of the Scottish Executive. For further information on the scheme go to: www.rsascotland.gov.uk

The New Deal Premium was introduced following the RSA review in 2001/02. It enables firms that meet the RSA scheme criteria to claim a premium of up to £5,000 for each job filled by a New Deal trainee or recent graduate. To receive the full amount they employ and retain then for at least two years. This premium is subject to the normal RSA grant limits.