What is the Regional Selective Asssistance Scheme?

Published on Monday 6 September 2010 18:22

REGIONAL selective assistance (RSA) is a scheme that provides financial help to businesses considering moving to or expanding in Scotland.

Grants are administered by Scottish Enterprise and designed to help entice operations to areas of low employment or secure larger employers in Scotland as a whole. Supporters insist it helps Scotland compete to win business that, in today's hi-tech world, can be located virtually anywhere in the UK or Europe. But critics maintain offering grants to profitable businesses such as Barclays Bank, is undesirable - especially in the current climate.

David Lonsdale, of CBI Scotland, says the grant scheme is "a highly effective weapon in the devolved government's armoury to encourage industry and commerce to invest, expand and locate in Scotland".

Stephen Boyd, assistant secretary of the STUC agrees - up to a point. He believes the Barclays announcement was pragmatic and welcome, but warns that the RSA should be linked to the sustainability of the jobs created. "We have seen RSA given to a range of organisations where the jobs have not been sustainable," he says. "The companies have come here, used up the grant aid and the jobs have gone in three or four years. I would accept there will be disquiet out there about money being used to fund new jobs in profitable institutions. But it is pretty much a needs must situation at the moment."