News / Aid decision soon
A DECISION on whether to cut public funding for Shetland businesses is expected in the near future, according to the local authority.
Earlier this year the European Commission announced new rules that would exclude Shetland from the top category for assistance, due to its levels of unemployment and economic activity.
Since then Shetland Islands Council has embarked on an intense lobbying campaign saying it is unfair to separate the isles from the rest of the highlands and islands and lump it into the same category as major European cities.
Unless the decision is overturned, the SIC and Highlands and Islands Enterprise will only be able to offer 20 per cent funding towards small businesses, down from 40 per cent.
Medium sized businesses will see levels of support going down from 30 to 10 per cent.
This week the European Parliament backed the council’s campaign to retain its current standing.
However SIC development manager Douglas Irvine said the decision was one small step on a long and difficult road.
“The Parliament has put their views behind ours, but that does not mean that things are going to change because it is the Commission that has to make the changes,” Irvine said.
“If this goes through we will struggle to provide the levels of support into certain projects that we do at the moment and could have a huge impact on moderately sized economic developments.”
An announcement is expected in the near future, he said. “What worries me most is that this could be the thin end of the wedge.”
Businesses most likely to be affected by the change are manufacturing, crafts, textiles, renewable energy, tourism and services.
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