SE reveals £16m RSA jobs boost

Scottish Enterprise has announced a £16m jobs boost for the Scottish economy in its quarterly report on Regional Selective Assistance (RSA) funding, published today (5 August).

The report, which outlines RSA offers accepted between April and June 2010, shows that funding totalling £16m was accepted by 29 businesses during the last quarter. These offers relate to projects with intended investment of almost £117m, aimed at the planned creation and safeguarding of over 2200 jobs. 

The total funding for the last quarter is more than double that announced for the preceding quarter, thanks to a number of large individual company offers. 

The largest award made during the last quarter was for Scottish and Southern Energy Plc. The Glasgow-based company has accepted an offer of £2.8m of RSA which will contribute towards a new centre of engineering excellence for renewable projects that will create 250 jobs.

From a sectoral view, the biggest beneficiary is the Scottish manufacturing industry which will receive a collective £8m of RSA funding towards the creation of 437 new jobs. This funding, which will also safeguard an additional 516 jobs, has been awarded to twelve manufacturing companies across Scotland including Robert Cullen Limited (Glasgow), Oil Technics Holdings Limited (Montrose) and Fourstones Paper Mill Co Limited (Glenrothes).

From a regional perspective, Ayrshire is once again the main beneficiary, receiving £4.84m of funding which will see local firms create 220 new jobs and protect an additional 218 positions.

Glasgow companies also secured over 900 jobs, thanks to RSA funding worth £4.46m. Among the companies to benefit is inward investor John Lewis Plc which will use £700,000 of RSA funding to establish a customer service centre, and Tennant Caledonian Breweries UK Limited which is set to focus its operations even more sharply on its home market thanks to a £245,000 award.

Commenting on the report, Lena Wilson, chief executive of Scottish Enterprise, said:

“It is our role to encourage both Scottish and foreign companies to invest in Scotland and RSA is one of the key tools we use to do this. It is particularly encouraging to see RSA support going to a number of manufacturing ventures as this shows that despite tough economic conditions, the Scottish manufacturing industry has been fairly resilient and successful growth can be achieved with the right strategy and ambition.

"The challenge now is to capitalise on our strengths to help maintain the fragile recovery that is underway and increase sustainable economic growth for Scotland.”

Finance Secretary John Swinney added: “Investment in new jobs can help secure a strong and sustained economic recovery. That’s why RSA remains a vital tool in helping companies to expand and provide employment opportunities in a variety of sectors.  The latest quarterly report is extremely encouraging, with £117m of investment linked to the planned creation or safeguarding of more than 2200 jobs – including ventures in manufacturing, renewable energy and food and drink.

"It builds on the Scottish Government’s Economic Recovery Plan, as we continue to pursue all opportunities to boost job creation and help ambitious businesses in Scotland go from strength to strength.”