The Scottish Government has been accused of “passing the buck” and failing to support the north-east fish processing industry cope with controversial business rates rises.
Finance Minister Derek Mackay met with industry representatives in recent weeks amid growing concern that the region is losing out on trade to the north of England where running costs are lower.
The under-fire minister was challenged on the steep business rates rises that many firms have faced over the past year.
However he has since written to Aberdeen’s council co-leaders Jenny Laing and Douglas Lumsden as well as Aberdeenshire leader Jim Gifford and suggested that the onus was on them to introduce further relief.
This has prompted one north-east MSP to claim the government is refusing to take responsibility for the financial strain many firms are under.
Peter Chapman, shadow secretary for the rural economy, said: “It is disappointing to see once again that Derek Mackay is passing the buck to local councils.
“High business rates, water charges and effluent charges make it increasingly difficult for firms in the north-east of Scotland to compete.
“Our councils here in the north-east are among the worst funded in Scotland – with more cuts to come. They cannot afford to shoulder the bill for this.”
Meanwhile, city council co-leader Douglas Lumsden said the authority had introduced a £4.2million relief scheme but the industry still required national support.
He said: “The chaos caused by the rates issue continues to hammer businesses here in the north-east.
“Fishing processers rightfully expect assistance from their government, instead they’ve been met by a shrugging of the shoulders from the finance secretary.”
Jim Gifford said any future relief scheme would have to hinge on government support.
“Until we get a sensible financial package we’re working on a year to year basis,” he said.
“I think it’s pretty rich of Derek Mackay to suggest that we pay for a relief scheme when all of his fixes are in place for one year with no guarantees they will be renewed again.”
A government spokeswoman said it had introduced a raft of measures to assist struggling business, including funding rates relief of about £660m.
The spokeswoman added: “Local councils can also reduce rates bills to address any issues in their local area, following the Community Empowerment Act. The Scottish Government will continue to work with interested parties on these opportunities.”
