Information Bulletin
State Aid
The news today that £25 billion of state aid is being made available to Northern Rock has been greeted with astonishment by Shetland Islands Council, who are facing the threat of having to claw back £1m from Island fishermen and local fish factories.
The Convener said today that ‘the UK government clearly expected that this £25 billion bale out to be treated differently from Shetlands attempts to safeguard Shetland its fishing industries. While the funds to save Northern Rock are directly from the UK taxpayer, those applied to support Shetlands threatened traditional industries are solely derived from profits arising from Sullom Voe. Not to get the UK to lead an appeal on our behalf in light of this clear difference between the cases is very disappointing’.
The UK Fisheries Minister Jonathan Shaw’s statements at the weekend that the only assistance the UK Government could provide, was to press the case for retrospectively applying de-minimus regulations to shareholder fishermen and therefore reducing the impact of the EU decision on individuals. The Council presented the case to apply these regulations as far back as the beginning of December 2007 and requested that Government officials urgently sought clarification on that from the EU Commission. The Council welcomes the UK government’s renewed focus on this, but is left in an impossible position as that decision apparently will not be made until after the deadline for the UK government to launch an appeal.
The Council in the circumstances has little option other than to continue to prepare the grounds for its appeal directly to the EC Courts in order to protect the position of the Fishermen and the Fish Factory as well as to defend the community from further complaints and investigations regarding past or future investments.
Ends.