Lochhead confirmed that a revised bid for a ScottishGovernment grant is expected to be approved shortly – meaning the firstinstalment of funding could be paid within weeks.The Cabinet Secretary said: “Dairy is hugely important tomany of Scotland’s rural communities as well as the economy, which is why theScottish Government is firmly committed to working with the sector to secureits future.”
He added that the Campeltown Creamery was “a lifeline forproducers on the Mull of Kintyre” saying: “The Scottish Government stands ready to invest in this important facility, and my officials continue to work closelywith First Milk on their revised proposals for a new whey plant and various other improvements to the existing site.
“I expect to be able to issue a new offer of financialsupport very shortly – likely to be around £450,000 – which will enable thefirst instalment of the grant to be paid within weeks and safeguard 25 jobs atthe plant.
“The Scottish Government is also continuing to consider thecost of ferry travel for dairy farmers on the islands. Transport Scotland isconducting a comprehensive review of freight fares across the whole ferrynetwork, with the aim of delivering an overarching freight fares structure forall Scotland’s islands that is fair, transparent and straightforward, as wellas delivering best value for taxpayers at a time of severe cuts to the ScottishGovernment budget.”
NFUS has recently been consulted as part of the ferry farereview. A new freight fares structure will be implemented in future ScottishGovernment ferry contracts. The next Clyde and Hebrides Ferry Services contractis due to commence in Autumn 2016.
Under EU state aid rules, the Scottish Government canprovide a grant of up to 20 per cent of eligible costs. The eligible costs forthe revised Campbeltown Creamery project have still to be agreed with FirstMilk, but the Scottish Government contribution is likely to be around £450,000 in total.
Source: The National