The Scottish Government has voiced serious concerns over an English council’s cash incentive that could threaten hundreds of Fraserburgh jobs.
The Young’s Seafoods’ factory on Watermill Road lost a major contact earlier this year – putting the future of its production in jeopardy.
Senior bosses at the seafood company are considering how to restructure the firm and have not ruled out closing their north-east operation.
Now it has has been claimed that North East Lincolnshire Council has offered Young’s Seafood more than £1.3million in aid to keep its Grimsby factories operational. This could come at the cost of Scottish jobs.
Government ministers met this morning to discuss the ongoing crisis and business secretary Fergus Ewing confirmed that they would continue to work to protect Fraserburgh’s interests and make a “compelling” case for the town.
However, the Scottish Government has voiced serious concerns that the funding package on offer in Grimsby would be a breach of EU State Aid rules, which regulate how much direct funding can be provided to private enterprises.
MSP for Banffshire & Buchan Coast, Stewart Stevenson, sought a commitment from Scottish Ministers that an apparent difference in legal interpretations in England and Scotland would not disadvantage Fraserburgh.
Speaking after the meeting, Mr Stevenson said: “This is an important commitment from the Scottish Government that, despite a dubious offer of funding from Grimsby council, work will continue to ensure that the strongest possible case is made for continued employment in Fraserburgh.
“This is a deeply worrying time for all who work locally for Young’s and we need uniformity in the application of EU rules. It would not be beneficial to the company if they found themselves in breach of state aid rules.”