Enterprise

– Scottish Parliament written question – answered on 28th May 2009.

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Photo of Bill Wilson Bill Wilson Scottish National Party

Question S3W-23899

To ask the Scottish Executive what grants it has provided to Rolls-Royce plc and what information it has on any grants provided by the UK Government in relation to the Rolls-Royce facilities at Hillington or the new base at Inchinnan and what conditions relating to employment were associated with any such grants.

Photo of Jim Mather Jim Mather Scottish National Party

The Scottish Government has provided the following grants to Rolls-Royce:

Regional Selective Assistance (RSA)

The RSA grants that have been provided to Rolls-Royce in Hillington/Inchinnan and East Kilbride since the mid 1990s:

Hillington/Inchinnan

In 2005, the company accepted an offer of £650,000 towards a £7 million expansion project that aimed to create 40 new jobs. The company has received all of the grant which, under the terms of the grant agreement, is in conditions* until July 2011.

In 2002, the company was offered an RSA grant of £15 million towards a £44 million project to relocate its operations from Hillington to Inchinnan. The project would safeguard 900 jobs. This grant has been paid in full and is in conditions* until December 2011.

The company also accepted two offers of RSA in 1996 totalling just over £8 million for projects at Hillington. The projects involved capital expenditure of over £28 million and led to the creation of 85 new jobs and the safeguarding of 570. The grants were paid in full and are out of conditions*.

East Kilbride

In March 2008, the company accepted an RSA offer of £845,000 towards a £5.6 million expansion project that aims to create 86 new jobs and safeguard a further 43. To date, none of the grant has been paid.

In 1994 it accepted an RSA grant of £1.4 million towards a £8.5 million project that would safeguard 134 jobs. This grant was paid in full and is out of conditions*, the company having met its obligations under the terms of the grant agreement.

Note: *Conditions of grant agreements mean that companies must maintain project jobs and assets for a specific period of time following completion of the project.

Research and Development (R&D) Grant

In January 2007, Rolls-Royce (Inchinnan) accepted an R&D grant from Scottish Enterprise of £447,000 as part of a £1.475 million investment creating 10 full-time equivalent (FTE) jobs. The company has received all of the grant which, under the terms of the grant agreement is in conditions** until April 2010.

Note: **Conditions: FTE employee target means the continuous employment by the company at the project premises of, on average, not less than 10 FTE employees for a period of 18 months beginning on the project completion date (31 October 2008). If the company fails to achieve this target, Scottish Enterprise is entitled to demand and receive repayment from Rolls-Royce of a proportion of the grant related to preset formulas laid out in the offer agreement based on number of jobs achieved.

The Scottish Government is not aware of the details of any UK Government grant support given to Rolls-Royce. However, we are aware that Rolls-Royce is considering how R&D support schemes from both the Scottish and UK governments might be accessed to support and grow its R&D activities.

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