Council seeks legal advice
12 Jul 07
Shetland authority looks to Lord Boyd to help with question of oil funds
The Shetland Islands is seeking legal advice on what it should do with the £500 million it received as community funds.
The money came from the oil companies that arrived on the islands more than 30 years ago and Shetland Islands Council is to talk with Dundas & Wilson to clear up the position on what it should do. The Edinburgh-based firm first advised the council on the situation in the 1970s.
The council is concerned that the money in the funds could contravene European regulations. The money had previously been seen as separate from the local authority's cash, but recent state aid judgments in Europe have challenged the council's approach. This relates particularly to Shetland Development Trust's financial support for economic development in the islands.
Some 22 island councillors are part of the oil-funded Shetland Charitable Trust and Shetland Development Trust.
The councillors have agreed with Morgan Goodlad, the authority's chief executive, to seek legal advice from Lord Boyd. Dundas & Wilson drew up the agreements for the funds with the oil industry at the time. There is a fear that money could also be shared out with other areas if local health and enterprise companies are merged.
Dundas & Wilson corporate partner David Hardie said: “This is full circle for me, it’s where I started with D&W in 1976, so it’s terrific to be able to be involved again in helping Shetlands Islands Council realise the potential of their natural assets."