This item was published during the term of a previous administration that ended in April 2007
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Funding for Highlands and Islands economy
24/03/2005
More than fifty farming families are set to explore
pastures new after being awarded funding to restructure
their business or diversify away from agriculture.
Rural Development Minister Ross Finnie today announced
that 55 families will share a total of £963,005 from the
Agricultural Business Development Scheme to establish new
or expand existing businesses.
Since its launch in 2000, grants worth over £12 million
have helped to establish businesses ranging from a
children's nursery to licensed restaurants - improving
local services and boosting the Highlands and Islands
economy by almost £35 million.
The Rural Development Minister said:
"This funding is helping to build the foundations for a
more sustainable rural economy.
"We are beginning to see the dividends from our
investment. Already, we have seen the creation of over 90
jobs and almost 200 others safeguarded whilst quality
standards and farm incomes have risen.
"The scheme will close for applications for the final
time on September 01, 2006. This may seem a long way off
but it is important that applicants ensure time is taken to
develop their business ideas and fully take into account
matters such as the need for a comprehensive marketing
plan, evidence of demand and financial projections."
ABDS is an innovative business development scheme for
farmers/crofters and their immediate families and operates
across the Highlands and Islands Special Transitional
Programme Area (H&ISTP). Farmers in the rest of
Scotland are eligible to apply for grant assistance under
the Farm Business Development Scheme.
To date 930 applications have been successful since the
ABDS was launched in late 2000 providing total grants of
£12,020,464.
The scheme is discretionary and competitive providing
variable grant assistance of up to 50 per cent to farmers
wishing to restructure or re-orientate production, or to
diversify either within or out with agriculture. It is
co-financed by the Scottish Executive and the European
Union.
The overall budget for the scheme is approximately £17
million, which is broken down into yearly tranches in the
H&ISTP.
Applications are assessed by a Project Assessment
Committee (PAC). The non-agricultural diversification PAC
is made up from representatives of the Scottish Executive
and from partner organisations including local authorities,
Highlands and Islands Enterprise (HIE), Scottish Natural
Heritage (SNH) and VisitScotland. Industry interests are
represented by NFU Scotland, the Scottish Crofting
Foundation and the Scottish Rural Property and Business
Association, who can send representatives to observe the
proceedings. All of the above organisations were involved
in the Scheme's design.
The closing date for the next round of ABDS applications
is April 8, 2005. The ABDS is scheduled to run until end
2006.