SNP Government acts to save jobs at airport

herald

Ministers have decided not to recoup any of the £50m it is owed in loans and interest from the state-controlled Prestwick Airport to allow it to remain in existence – leading to concern it has sanctioned unlawful state aid, the Herald on Sunday can reveal.

Transport Scotland has provided written confirmation that it will not seek repayment of all or part of the loan facility or the interest until at least March 31, 2023 – which directors say will enable the Ayrshire airport to “continue in operation existence for at least the next 12 months”.

https://www.heraldscotland.com/politics/19902870.unlawful-state-aid-concern-ministers-drop-claim-50m-owed-prestwick-airport/

So, off I go, not entirely well-informed, but aren’t these now-obsolete EU laws? I know the transition period was extended beyond 31 December 2020 for 11 months but, as I understand it, the UK Government ruled out any further extension:

https://www.instituteforgovernment.org.uk/explainers/brexit-transition-period

As for breach of such rules, it’s so common that Scotland’s examples are pale and insignificant.

For example, in March 2021, the European Commission decided to refer the United Kingdom to the Court of Justice of the European Union for failing to fully recover illegal State aid of up to around €100 million, granted as a tax exemption for passive interest and royalties in Gibraltar: https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1266

Or, the subsidising of nuclear power, distorting the market, to the tune of £50 million each year: https://www.bbc.co.uk/news/science-environment-16646405

Don’t give us it!

7 thoughts on “SNP Government acts to save jobs at airport

  1. The English government poured in up to £1 billion to each of the car manufacturers it wanted to entice—in bungs, loans and grants. Have any of them been payed back?

    Starting with Gordon Brown the English government has poured hundreds of millions of pounds into renewable jobs on England’s east coast–while ignoring Scotland.

    The steel industry has had hundreds of millions in subsidies to keep it afloat. Has the Herod asked if that money was ever re-payed?

    The Boris regime has lots tens of £billions in dodgy loans, with £5 billion lost (and written off) to fraud. Herod Headlines? Nope!

    Labour, Tories and some colonial newspapers are desperate to close down Scottish jobs, make us impoverished to support their notion of colonial “broadshoulders Union”!

    Liked by 8 people

    1. Sadly in what passes for Scottish news reporting ome folk can’t bear not to find something in Scotland to set against the mess from Westminster and to imply we’re no better. Look how they scrutinised the bute house wine bill – everyone drinks at work so the downing st parties weren’t that bad. Wasting public money? Indy2 prep, writing off debts, sure Scotland is no better

      I’m thankful every day that I live in Scotland, life isn’t perfect by any means but at least we have some grown up, experienced and compassionate politicians who try to do good things. And it helps to remember this when the news is depressingly bad day on day. My thanks again to you John for sticking with this blog, it can’t be easy when there is such negativity all around but you’re doing a great job highlighting some of the stuff that Scotland does well

      Liked by 4 people

  2. £50m foregone – temporarily (?) – to sustain an asset that employs people. How wasteful, ‘bad ‘ is that?

    From The Guardian, 1 Feb 2022: ‘Department of Health writes off £9bn spent in England’s Covid PPE drive.’

    From ‘Accounting Web’, 20 Jan 2022: ‘Government writes off £4.3bn in stolen Covid payments

    ‘- Almost £6bn in public money has been erroneously paid out in coronavirus support, and the government expects to recover just £1 in every £4 after admitting more than £4bn may have been lost to fraud.’

    ‘Perspective’ – a concept foreign to much journalism in Scotland.

    Liked by 5 people

  3. Chris Musson will be incensed, “EXCLUSIVE” is HIS tagline, and as for the pun on “WINGING IT”, mere amateurs, they even spelled it correctly….
    As others have noted this DELAYED address of dues is a pittance compared to the multiple PERMANENT failings of Westminster, although 50M is probably more than the cost of the estate’s cocaine habits, for the sake of balance…

    Liked by 1 person

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