Comhairle nan Eilean Siar PRESS RELEASE 4 September 2001 For Use: Immediately

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Comhairle In Fight For Slaughterhouses

The Development Services Committee of Comhairle nan Eilean Siar, has recommended that the Comhairle should work with the Scottish Executive and local operators to explore Rescue and Restructuring Aid for slaughterhouses in the Western Isles.

The move follows correspondence from the Scottish Executive Environment and Rural Affairs Department regarding direct subsidy and the difficulties with that approach due to stringent European Commission State Aid rules.

The Comhairle, working through the Scottish Executive, had been seeking a State Aids Notification to grant derogation for the Western Isles. However, the Executive has advised the Comhairle against that approach on the basis that it is unlikely to succeed.

The alternative approach is to explore possible Rescue and Restructuring Aid under the terms of the Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty,

Chairman of Development Services, Cllr. Donald Maclean, said: "The Scottish Executive made quite clear that their view, based on indications from the European Commission, was that we were extremely unlikely to receive an exemption for the Western Isles. Whilst it would be possible to proceed, the view of the Development Services Committee is that the interests of the Western Isles and in particular our crofting communities are better served by going down the road of Rescue and Restructuring as suggested by the Scottish Executive. The Executive has confirmed that it recognises the unique difficulties faced by crofting communities and slaughterhouses in the area and has given assurances that it will continue to support and work closely with the Council to find a legitimate and workable solution."

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Issued by Nigel Scott
Communications Officer

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email: nscott@cne-siar.gov.uk