This item was published during the term of a previous administration that ended in April 2007
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Assisting areas to deliver economic growth
25/10/2006
A global recruitment services company and a Dundee wire and cable manufacturer will each receive £250,000 to help them create over 60 jobs.
Deputy Enterprise Minister Allan Wilson said that the latest round of Regional Selective Assistance (RSA) awards will help create and safeguard more than 1,500 jobs and should lever in total investment of around £30 million.
The Minister also announced that RSA-type grant support for small and medium sized enterprises (SMEs) will be extended to large parts of south, central and east Scotland from next year.
The areas to be covered will include those parts of Scotland who will no longer benefit from Assisted Areas status under proposals submitted earlier this month to the European Commission by the UK Government.
The Executive today publishes its RSA Quarterly Report for July-September 2006 which shows that around £10 million will be distributed to businesses across the country.
Allan Wilson said:
"I am pleased to announce this latest round of £10 million of RSA funding which will benefit 27 companies in a diverse range of sectors around Scotland.
"We want to see companies of all levels growing and delivering on targets - contributing not only to Scotland's economy but also to the labour market by creating and protecting jobs.
"Dundee company iCs2 Ltd who manufacture bespoke cabling solutions have adapted to the evolving cable market in recent years breaking the £1 million turnover mark - we're pleased to help them develop through RSA allowing them to create 28 new jobs.
"Similarly we want international companies like Hudson Global Resources Ltd to continue to recognise Scotland as a great place to do business in terms of talent, business networks and support. RSA reinforces this message and this round of investment will see Hudson creating 35 new jobs in Glasgow.
"RSA makes a positive difference to the assisted areas of Scotland through job creation and retention thus boosting local economies. I would strongly encourage other Scottish companies to consider what RSA can do for them."
On the proposed new scheme for SMEs, Mr Wilson added:
"The Assisted Areas map published this month by the DTI presented a fair and equitable outcome for Scotland, given the general position of reduced coverage across Europe. It targeted coverage at areas of greatest need and opportunity for large scale development.
"We recognised, however, that there are other areas of the country where support to sustain and grow SMEs is merited. We will take the opportunity of the new regional aid regime to introduce a new support scheme for SME investment which will extend RSA-style grant coverage to SMEs in areas of need outwith the new Assisted Areas map.
"We will announce the details of the new SME support scheme before the end of the year."
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.
Payments of RSA are made in instalments, typically over several years, provided that job and project expenditure targets are met.
The amounts quoted here and in the report therefore represent the maximum grant potentially payable if the project is satisfactorily completed, and not the amount actually paid to date.
All job numbers are based on firms' forecast figures at the time a grant is offered, and are subject to change depending on future economic conditions and other factors affecting the business concerned.
On October 11, The DTI submitted to the European Commission a proposed Assisted Areas map for the UK which, as require by Commission guidelines, reduces the overall UK coverage from 30 per cent of population to 23.9 per cent.
Scottish coverage has been reduced in line with the rest of the UK. The proposals for Scotland mean (with Highlands and Islands already guaranteed higher intensity cover until 2010) population coverage of 37 per cent, which reflects relative economic performance.
As a recognition that there are areas outwith the new proposed map which demonstrate need for support for SMEs, the Executive intends to introduce a formal grant support scheme under the Commission's SME Block Exemption. The new scheme is expected to provide RSA support packages to SMEs in the areas of Scotland which will lose Assisted Area coverage under the latest proposals, and a number of other existing non-AA areas where SME support need has been identified. Full details of the areas to be covered will be announced later this year.