News / SIC told to keep up state aid fight
SHETLAND could restore the European aid status it lost in June by changing tack and lobbying the UK government, according to a top Brussels mandarin.
During his flying visit to the isles on Monday, European Union regional policy commissioner Johannes Hahn told Shetland Islands Council leader Gary Robinson there could be some “leeway for further negotiations”.
Councillors and officials were horrified this year when the EU announced Shetland’s booming economy disqualified it from the top bracket for state aid.
Despite an intense lobbying campaign, which won the support of Hahn and other senior figures, Brussels bureaucrats refused to shift their position.
As a result the SIC and other public funding agencies like Highlands and Islands Enterprise can only provide 20 per cent funding for private sector projects, while the rest of the region qualifies for 40 per cent.
The council fears the decision could threaten Shetland’s share of the EU’s regional development budget that has brought £1 million a year into the isles over the past six years.
Economic development manager Douglas Irvine said the state aid decision could be “the thin edge of the wedge”.
However on Monday Hahn offered a glimmer of hope that the UK government could allow Shetland to rejoin the 40 per cent zone, which has been worth around £400,000 to the local economy in recent years.
“(The decision) is now subject to member state internal discussions and decisions and it’s certainly possible that Shetland could qualify as a region that can use better regional state aid conditions than is normally the case,” the Austrian European People’s Party member said.
He advised the council to lobby Westminster to restore Shetland’s 40 per cent status and at the same time make sure it was not shortchanged in the allocation of regional aid.
Irvine explained: “There is an element of member state discretion in this.
“The EU have said we are not on their map. It’s not in Commissioner Hahn’s gift to give us a loophole, but he has indicated there does seem to be scope to negotiate with the UK government.”
The council will now start a campaign to persuade Westminster of their right to better treatment from Brussels.
“We are looking to preserve Shetland in the same status as the highlands and islands.
“Although things are fairly prosperous in Shetland, we don’t think it’s right that we are considered differently from Inverness for example.”
Hahn also indicated that Shetland’s outer isles had not left the 40 per cent zone due to their small populations.
Become a member of Shetland News
Shetland News is asking its many readers to consider paying for membership to get additional features and services: -
- Remove non-local ads;
- Bookmark posts to read later;
- Exclusive curated weekly newsletter;
- Hide membership messages;
- Comments open for discussion.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a member of Shetland News by either making a single payment, or setting up a monthly, quarterly or yearly subscription.
Already a member? Sign in to hide this message.
