Comhairle nan Eilean Siar
Press Release
12 December 2008
Comhairle and Banks In Economy Talks
Representatives of the four main islands banks and Comhairle nan Eilean Siar have met to discuss the local economic situation and the challenges facing the local business community.
The discussion allowed the banking representatives to provide clarification in regard to their approach and covered a range of topics including their attitude to the provision of credit and the passing on of any interest rate decreases.
There was broad agreement that the local economy presently faced a number of constraints and discussion focussed on measures that could be undertaken to assist over the next critical period. It was confirmed that a report would go to the Comhairle’s Policy and Resources Committee next week recommending that £12m of capital expenditure would be released to allow development.
The recent decisions from the Community Planning Partnership were also overviewed. These included:
- development of tendering and procurement procedures which, within legal constraints, are sympathetic to the needs of the local business community,
- consideration to be given to a ‘Keep Business Local’ campaign
- consideration of a short term loan guarantee programme to assist otherwise sustainable businesses over short to medium term credit and cash flow challenges
The banks were keen to encourage early dialogue with their business customers who may be facing challenges as a result of the present slow-down. Representatives of the banks also agreed to participate in a business summit that the Comhairle will be organising for early in the New Year.
Angus Campbell, Leader of Comhairle nan Eilean Siar said after the meeting, “The present downturn in the economy of Scotland and the UK is having a particularly hard impact on the economy of the Islands. In the present circumstances, I believe it is essential that we all work together to support the local economy. I was extremely concerned about some of the feedback coming from the business community in regard to the approach of the banks. The meeting therefore provided an opportunity for me to pass on these concerns and to press the banks in regard to their present approach to business customers. It was very useful to receive clarification from and fully understand the approach being pursued by the banks. It was also helpful to receive their feedback in regard to their perceptions of the present economic situation”.
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Nigel Scott
Communications Officer
Comhairle nan Eilean Siar
Tel: 01851 822622 (Work)
Tel: 07884 236103 (Mobile)
email: nscott@cne-siar.gov.uk
Ruairidh Maciver
Communications Assistant
Comhairle nan Eilean Siar
Tel: 01851 822615 (Work)
Tel: 07881 774601 (Mobile)
email: ruairidh.maciver@cne-siar.gov.uk
