Demand for £½m to be returned
The First Minister has been roped into the fight to get the owners of a former Cambuslang factory to pay back £500,000 owed to the community.
The Reformer told last week how the now-closed 2 Sisters Plant had received more than £500,000 in funding from Scottish Enterprise - on the grounds that it stayed open until at least 2020.
Demands have been made for the cash to be repaid, and Labour MSP James Kelly highlighted the issue with Nicola Sturgeon at First Minister’s Questions in Holyrood last Thursday.
Mr Kelly called on Nicola Sturgeon to hand the money back to Cambuslang.
The MSP wants the money to go towards local causes, including rejuvenating the Main Street.
James Kelly said:“2 Sisters is guilty of economic vandalism to Cambuslang. The Scottish Government handed out half a million pound of public money to the company in order to keep its factory open until 2020.
“Despite this, the plant shut down this year, costing hundreds of jobs and wiping out a local employer of 40 years.
“The First Minister must now get this cash back from 2 Sisters and give the £500,000 back to the Cambuslang community.
“People from the local area will rightly question the Scottish Government’s behaviour to date, in giving public money to an employer which failed to meet its promise. Now Nicola Sturgeon must stay true to her word and invest this cash in our area.”
Nicola Sturgeon said:“All Scottish Enterprise grants have conditions attached. Those are written into the legally binding contracts that are made with any company that receives a grant.
“Scottish Enterprise must ensure that it is able to obtain repayment of a grant when there has been a fundamental breach of an agreement.
“It is set out clearly in the offer letter that conditions are attached to the grants.
“Scottish Enterprise is actively in discussion with 2 Sisters for the return of the grant for the Cambuslang site.
“In due course, we will have discussions with the local community about future investment there.”