Showing posts with label Regional Selective Assistance. Show all posts
Showing posts with label Regional Selective Assistance. Show all posts

Friday, 13 November 2009

Diageo and RSA


RSA is Regional Selective Assistance which offers taxpayers' money to certain areas of Scotland which have been designated Assisted Areas.

Like all business who met the criteria, Diageo applied in 1999 for a grant and received £1m towards the expansion of its Kilmarnock plant - which is now to close with the loss of 700 jobs.

Then in November 2001 the then labour/libdem Scottish government awarded a further £1.6m towards the cost of a bottling line at Leven in Fife, where the firm plans to boost its operations.

Patrick Harvie MSP has called Diageo "extremely disingenuous" for accepting public funds to protect jobs at the Johnnie Walker site in Kilmarnock - jobs to be axed in favour of investment in Leven. He also hit out at the further grant used by the company to safeguard jobs at Leven, which he claimed undermined Kilmarnock's position.

However, Tricia Marwick MSP for Central Fife, said the company had worked within the rules.

Mr Harvie added: "Diageo have apparently persuaded successive ministers to ignore their massive profits and to use our money to fund their redundancies.

"Scottish Ministers must now promise not to squander any additional public money in this way.

A spokesman for Diageo said, "Diageo is totally comfortable that all obligations placed on the company in relation to these grants have been met."

Quite amazing how a company which yields massive profits is provided with taxpayers' money albeit legally. Reminds me of the Queen applying and receiving taxpayers' money from some other government scheme, for erecting miles of fencing round perimeter of Balmoral Castle - all in the name of keeping deer clear of the road.


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