The UK government has hit back at claims that a “dubious” cash incentive has been offered to a fish firm which could cost hundreds of north-east jobs.
Young’s Seafoods unveiled plans last month to close its factory in Fraserburgh – throwing the futures of 900 workers into doubt.
A deal struck with the Scottish Government could keep 250 staff at the Watermill Road plant, but 650 people are still facing redundancy.
This week a new threat to their livelihoods emerged when an English council announced a £1.3million funding package for Young’s in an attempt to keep its three Grimsby plants operational.
Scottish ministers – concerned the offer could encourage the crisis-hit seafood firm to pull the plug in Fraserburgh – suggested the deal could be in breach of EU state aid legislation.
Scottish business secretary Fergus Ewing said he would seek “urgent clarification” from Westminister on the nature of its funding package, while Banffshire and Buchan Coast MSP Stewart Stevenson described the offer as “dubious”.
Now the UK department of business, innovation and skills (BIS) has played down the reports and insisted no firm offer has been made to Young’s.
A spokeswoman said: “We have extended the North-East Lincolnshire’s Regional Growth Fund (RGF) programme which will give Young’s the opportunity to bid for a RGF grant.
“Any funding will be subject to rigorous assessment against state aid and the RGF value for money criteria.”
Last night’s BIS statement clarified that Young’s has not been offered money, but instead has been invited to apply for existing funding.
The seafood firm’s chief executive Pete Ward said his team was considering the possibility of an RGF grant.
Mr Ward said: “”We now need to review the details and discuss this development with the appropriate stakeholders as part of the consultation process taking place following the news of the loss of a contract earlier this year.”
An announcement about the future of the Fraserburgh factory is expected when the Young’s board meet later this month.