Council to fight £1m repayment decision
21 Nov 07
Convener says EU ruling will cripple development of Shetland's industry
A Scottish council is to fight to reverse a European Commission ruling ordering fishermen to repay it almost £1 million.
The payment is from grants awarded by Shetland Islands Council to fishermen, trawler owners and a fish processing company. The Commission has ruled that the grants breached state aid rules after an anonymous complaint was made to Brussels.
The money came from the islands' oil reserve fund through economic development schemes operated by the council and the Shetland Development Trust. The breach is alleged because they gave the recipients an unfair advantage over other European Union citizens.
Sandy Cluness, convener of the islands council, said the local authority did not want the money back and that the ruling was a devastating blow to the community. He said the council would be fighting the decision.
He added that the grants had been made in good faith and their repayment would cripple the development of Shetland's traditional industries.