The outcry over £1.3m being offered to troubled fish processor Young’s to save its operation in England while its future in the north-east hangs in the balance has been dismissed as “political noise from Scotland.”
The money has been agreed in principle by Prime Minister David Cameron to keep three of the company’s factories open in Lincolshire.
It comes after lobbying by Cleethorpes MP Martin Vickers (Conservative) and Grimsby MP Melanie Onn (Labour).
The money, which is still to be approved by the Business Minister, comes as 650 workers face redundancy at the firm’s Fraserburgh plan.
Scottish ministers – concerned the offer could encourage the crisis-hit seafood firm to pull the plug on the north-east port- have 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”.
But Mr Vickers said everything about the bid has been above board.
He added: “I am satisfied that this is money that was originally allocated for this area, and for a very similar use, from the Regional Growth Fund pot,” he said.
“The council has already gone through the due diligence checks and I am very satisfied this is just political noise from Scotland rather than serious argument.”
Angela Blake, director of economy and growth at North East Lincolnshire Council, said it was a “massive priority to sustain Young’s in North East Lincolnshire”.
She said: “We are working with Young’s now to see what other things we can support, working within the state aid regulations.
“We are quite confident how we are working with them is well within state aid regulations. It is an ongoing negotiation and we hope to have a decision on it by the end of the month.”
Young’s business is being restructured after the firm lost a lucrative salmon processing contract with supermarket Sainsbury’s which it said would leave the Fraserburgh plant “under utilised”.
Workers will learn at the end of this month whether their jobs are being scrapped.