News / Trust to boost local economy
SHETLAND’S oil funded charitable trust is to increase its investments in the local economy by one third, it announced on Wednesday.
The move comes after the organisation revealed it had experienced one of its best ever years on the stock exchange, growing its investment funds by 24 per cent to almost £220 million.
Trustees have also succeeded in balancing the books for the first time, by reducing expenditure from £17 million in 2002 to £11 million a year, the amount they expect to receive in interest on their investments.
The money is spent supporting local organisations that run leisure centres, care homes, heritage and cultural projects as well as the local voluntary sector.
However in a bid reduce their exposure to the volatility of the world markets, as demonstrated just last week when the stock exchange fell dramatically, the trust is seeking to increase its investment in the local economy.
Currently SCT has £30 million invested locally in property, Lerwick’s district heating scheme and Viking Energy Ltd, which holds a 50 per cent stake in plans to build Europe’s largest onshore wind farm in Shetland.
The trust intends to increase its local investments by at least £10 million over the next two years, a figure that could rise if new investment opportunities turn up.
If the Viking wind farm goes ahead it could double the trust’s income, though many islanders have voiced their opposition to the development and it has some way to go in the planning process.
The extra income will be welcome for an organisation which faces growing costs in the future on supporting the islands’ aging population and the trust’s aging buildings.
Trust chairman Bill Manson said: “The trustees have displayed considerable patience throughout a long period of retrenchment, and understand that the difficult choices they have had to make this past year have not been easy for the organisations the trust supports.
“However we believe we have placed the future of the trust on a sounder footing than it has been for the past eight years and must now concentrate on sustaining and developing the trust’s activities into the future.”
Financial controller Jeff Goddard added: “By sensibly investing more money in local assets such as rented property, the trust can protect our community funds and help the islands’ economy at the same time.
“However costs are always rising and big decisions will still be needed to keep up our high level of expenditure in the local community.”
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