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Regional Selective Assistance grants
04/06/2007
Companies in Scotland accepted £92 million of Regional Selective Assistance (RSA) grant offers last year, creating or safeguarding more than 9,000 Scottish jobs.
The RSA Annual Summary 2006-07, published today, shows that:
- Scottish firms accounted for 61 per cent (82) of the total number of RSA offers accepted (134)
- The 134 offers accepted in 2006-07 are related to projects with planned capital expenditure of £416 million
- Small and Medium Sized Enterprises (SMEs) accounted for 86 of the RSA offers, accepting total grant of more than £18 million towards investment of £72 million and more than 2,000 associated jobs
Enterprise Minister Jim Mather said:
"Our overarching priority is to deliver strong, sustained and sustainable economic growth. Regional Selective Assistance is vital if we are to encourage the investment and job creation in less advantaged parts of Scotland which will help grow our economy as a whole.
"This Government will give businesses in Scotland a clear competitive edge. We will reduce and remove business rates to give small and medium sized businesses a competitive tax position, creating a wealthier and fairer nation.
"As well as supporting home grown companies, RSA will continue to be used to attract inward investment which plays a key role in growing Scotland's economy. Companies know that our skilled workforce makes Scotland a highly attractive place in which to locate and invest. The range of businesses supported demonstrates the value of RSA in helping to grow Scotland's economy."
There were a number of large RSA awards in 2006-07, 26 in excess of £1 million. These included:
- £10 million to UPM-Kymmene (UK) Ltd a paper manufacturer for a project to construct a biomass combined heat and power boiler at its facility in Irvine;
- £9 million to Grangemouth based, diesel and petrochemical manufacturer, INEOS Manufacturing Scotland Ltd.
- £5.6 million to aeroplane engine repairer, GE Caledonian Ltd in Prestwick
- £1.99 million to SGL Technic Ltd to fibre manufacturer in Easter Ross
- £1.95 million to financial services company Alliance Trust plc in Dundee
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.
In 2005-06, RSA grant accepted was £59.4 million, with 151 offers expected to lead to the capital expenditure of £245 million and create or safeguard 8,290 jobs.