SE snubs bug killer’s bid for funding

SCOTTISH Enterprise has come under fire after a life sciences business hit a brick wall in its search for grants to fund work in tackling diseases in developing countries.

Edinburgh-based Xeroshield has come up with a new way of killing mosquitoes that doesn’t involve using harmful chemicals that can go on to poison water supplies in developing countries.

The firm was turned down for Smart:Scotland grants by Scottish Enterprise and instead looked at applying for a research and development grant from the agency.

But the company was put off proceeding with the application after questions were raised over the benefits the project would bring to UK taxpayers.

Xeroshield wants to manufacture its equipment in countries such as Brazil, Malaysia and Thailand to keep down the costs to people in developing countries.

The company said it was committed to staying in the UK and paying taxes here on any profits made from manufacturing licences.

Political parties said the case drew attention to the continuing issues that small businesses faced in securing funding for projects.

Willie Rennie, leader of the Scottish Liberal Democrats, said: “This situation highlights again how important it is that the Scottish Government gets banks lending again to small businesses so innovation can flourish in Scotland. Businesses are having real problems getting much needed funds to help their businesses grow.”

A spokesman for the Scottish Labour Party said: “For innovative Scottish products and ideas, there needs to be flexibility. We can’t have a situation where good ideas are boxed in because not all the boxes are ticked.”

Bruce Alexander, who set up Xeroshield in 2005 with his wife, Cristina Ayala, has spent much of his working life in Latin America and has seen the problems caused by dengue fever, a viral disease passed on by mosquito bites.

After spells at Rentokil, the Natural History Museum and the Liverpool School of Tropical Medicine, he worked in Brazil and was involved in trying to control the spread of dengue.

About 2.5 billion people, two-fifths of the world’s population, are exposed to mosquitoes carrying dengue, with about 50 million cases reported each year in 112 countries.

Recent evidence has suggested the disease is also moving into the southern parts of the United States.

The disease initially presents with flu-like symptoms and can also lead to dengue haemorrhagic fever, a more serious condition that kills more than 10,000 people each year, according to the World Health Organisation.

Judith Robertson, head of Oxfam Scotland, highlighted the need for new ways to tackle diseases such as dengue.

A spokeswoman for Scottish Enterprise said: “We take our customer service and company growth very seriously indeed.

“We’re already working with this company and will continue to do so to see if there’s anything else we can offer to support them. One of our senior staff will be in touch with the company on Monday to progress this.”

“Due to confidentiality reasons, we can’t comment on individual applications.”