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

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Funding for fishing industry

21/03/2005

More than 80 projects ranging from modernising fishing vessels, to harbour refurbishment and business start-up have been awarded grants totalling £4.7 million today.

The funding, from the Executive and EU Financial Instrument for Fisheries Guidance (FIFG) programme, is expected to trigger £16.2 million in private investment.

An additional £1.5 million of Executive support is being granted to the Highlands and Islands FIFG programme to maintain the overall value of the programme following a shortfall on the Commission spending target last year. This will provide continued opportunities for grant support to the region's fisheries sector.

Speaking at the Convention of the Highlands and Islands on Shetland, Fisheries Minister Ross Finnie said:

"This funding underlines our commitment to a viable and sustainable fishing industry.

"Today's announcement marks a further significant investment in the future of our fisheries and aquaculture industries.

"The additional £1.5 million funding which I am providing for the Highlands and Islands will ensure that we can deliver on our existing commitments in this area and support new projects.

"The awards provide much-needed support to remote communities across Scotland, including in Shetland, whose economies are heavily reliant on fishing and aquaculture."

This is the eighth round of awards under the European Union's Financial Instrument for Fisheries Guidance (FIFG) which was introduced in 2000 and will run until the end of 2006. Over the period of the FIFG programme, £55 million has been made available to Scotland (£17M for the Highlands and Islands area and £38 million for the rest of Scotland). Joint Fisheries Management Groups, involving partners from the industry, local authorities and the enterprise network oversee the administration of the schemes and regularly review funding allocations in light of experience and demand.

FIFG assists projects involved in processing and marketing, trade bodies, aquaculture development, fishing vessel modernisation and improvements to port and harbour facilities.

In order to utilise FIFG funding the Member State is required to contribute a minimum of five per cent of total eligible project costs. For the present round of awards the total Member State contribution, principally from SEERAD, will be approximately £6.2m.

In the Highlands and Islands the popularity of the schemes has been such that after the next (ninth) round of awards all resources are likely to have been committed. The original closing date of March 31 for new applications has therefore been extended to May 31 to provide applicants with what may be the last opportunity to apply for funding.

Outside of the Highlands and Islands the closing date for the next round of applications is March 31 2005.

The following are examples of projects receiving FIFG funding:

North Atlantic Fisheries College

The award of £35,140 grant to the North Atlantic Fisheries College will allow the organisation to undertake a trial of the viability of jig fishing (automated hand-lining) around Shetland. Irrespective of the outcome of the trial the project should provide benefits for fishermen. If the trial is successful then fishermen in the Highlands and Islands, especially owners of small inshore vessels, may be encouraged to use this technique to provide small high quality catches. If unsuccessful then individual fishermen will have avoided the financial risk associated with the trialing an experimental fishery.

Whitelink Seafoods

The grant of £233,727 awarded to Whitelink Seafoods Ltd under the Processing and Marketing Grant Scheme will enable the construction of extensions to the company's existing premises at Fraserburgh, the provision of a new access to the site, and the purchase of new glazing and packing equipment. The extensions will allow a new prawn processing area, a new despatch area and a new whitefish processing area to be developed. The developments will increase efficiency and productivity and will help the company reduce unit costs, as well as creating 40 full time jobs on completion.

Nufish Ltd.

The award of £446,380 to Nufish Ltd. in Shetland will allow the company to expand its hatchery to move on to the next stage and to produce commercially viable quantities of juvenile cod. The new award, under the Highlands and Islands Aquaculture scheme, will build on the expertise and success that the company has developed with the assistance of an earlier FIFG grant. The project at Nufish is in direct response to a strong demand within Shetland for an increased supply of juvenile cod by fish farmers wishing to grow the species. The expansion of the hatchery is expected to expand the current work force from 13 up to 20.

Middleton Seafoods

Middleton Seafoods based in the Highlands and Islands is an existing scampi processor that buys Scottish scampi. Previously the scampi was transported out of Scotland for further processing, grading, packaging and freezing. A Processing and Marketing Grant Award of £203,793 awarded in August 2004 has allowed the purchase of processing equipment that will allow value to be added in Inverness. The total investment is expected to be over half a million pounds and the project will maximise the use of Scottish raw materials and create 40 full time positions.

Page updated: Monday, March 21, 2005