Shetland Hits Out Over Pounds1m Aid Crisis

Shetland’s pounds1million EU state aid crisis was contrasted last night with the pounds25billion in UK Government “state aid” for Northern Rock.

Shetland council convener Sandy Cluness drew the comparison after Chancellor Alistair Darling announced the latest rescue plan for the mortgage bank, and as the islands authority’s legal counsel in London prepared its appeal to the European Court of Justice.

The council has until tomorrow to lodge its appeal against orders from Brussels to recover grants paid to young fishermen in the 90s to help them enter the industry, funded from North Sea oil profits related to the use of Sullom Voe.

Individuals face recovery action for pounds15,000-pounds17,000 each, including compound interest on what has been ruled by the European Commission as illegal “state aid”.

Mr Cluness said the appeal would proceed despite the UK Department of the Environment, Food and Rural Affairs refusing to act on Shetland’s behalf.

He said: “The UK Government clearly expects this pounds25billion bail-out to be treated differently from Shetland’s attempts to safeguard its fishing industries.”

But he pointed out that, while Northern Rock’s aid came from taxpayers, the fishermen’s grants were from North Sea profits owned by the islanders, not “the state”.

(c) 2008 Press and Journal, The Aberdeen (UK). Provided by ProQuest Information and Learning. All rights Reserved.