Comhairle nan Eilean Siar PRESS RELEASE 7 December 2000 For Use: Immediately

Comhairle Welcomes Grant Settlement

Comhairle nan Eilean Siar has given a cautious welcome to the local government grant settlement announced today by the Minister for Finance and Local Government, Angus Mackay.

Speaking in response to the announcement, the Convener of the Comhairle, Mr. Alex MacDonald, said: "The figures announced today are good news for the Western Isles. In particular I am pleased that the Comhairle's SINA funding is not to be reduced by £8m as was widely reported at one stage. We made strong representations to Ministers who listened carefully and have clearly recognised the validity of our case.

The AEF figures show a real term increase and although we are at the bottom end of the increases, we recognise the pressure on other local authorities. It is important to note however, that this is three year settlement and the biggest increase is in the first year. We must be careful to adopt a prudent and cautious approach to how this money is used with particular regard to revenue consequences.

We warmly welcome the significant increase in capital allocation, by 20% next year and 34.3% over the three years. Again, we are at the bottom end of the increase and recognise the pressures on other local authorities. We will however be aiming to maximise the benefit for people throughout the islands by allocating funds in ways that improve economic prospects and public services. Prudence will again be our watchword and we will have regard to the longer term consequences of every project, especially for our revenue budget.

Overall, this is a good settlement for the Western Isles which will allow us to carefully plan over the next three years in a cautious and careful manner."

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