Food Processing, Marketing and Cooperation (FPMC) grant awarded by the Scottish Government: EIR release

Information requested

Information concerning the £4 million Food Processing, Marketing and Cooperation (FPMC) grant awarded by the Scottish Government to Scotbeef during Round 7 of the scheme (2021–2024), intended for the construction of a new abattoir at Thainstone:

1. Have Scotbeef received money from the FPMC fund?

2. What receipts did Scotbeef supply in order to obtain the £1.95 million payment? Did these relate to the construction of the abattoir?

3. What assurances did Scotbeef give the Scottish Government that the proposed abattoir would be completed?

4. What tests did the Scottish Government make to assure themselves that the statement made by Scotbeef were true and realistic?

5. What steps will the Scottish Government be taking to recoup the public funds previously awarded to Scotbeef?

6. If the Scottish Government's decides not to require repayment of the funds at this time, at what point will this decision be made?

7. What are the criteria for recovering the funds, in the case such as this, i.e. non-delivery of the abattoir which was the subject of the FPMC grant?

Response

As the information you have requested is 'environmental information' for the purposes of the Environmental Information (Scotland) Regulations 2004 (EIRs), we are required to deal with your request under those Regulations. We are applying the exemption at section 39(2) of the Freedom of Information (Scotland) Act 2002 (FOISA), so that we do not also have to deal with your request under FOISA.

This exemption is subject to the 'public interest test'. Therefore, taking account of all the circumstances of this case, we have considered if the public interest in disclosing the information outweighs the public interest in applying the exemption. We have found that, on balance, the public interest lies in favour of upholding the exemption, because there is no public interest in dealing with the same request under two different regimes. This is essentially a technical point and has no material effect on the outcome of your request.

1. Have Scotbeef received money from the FPMC fund?

Scotbeef Inverurie Ltd was awarded a grant of up to £4 million under Round 7 of the 2014-2020 FPMC scheme for the construction of a new abattoir and meat processing facility at Thainstone. The company received a payment of £1,960,223.50 in April 2020. 

2. What receipts did Scotbeef supply in order to obtain the £1.95 million payment? Did these relate to the construction of the abattoir?

Scotbeef supplied invoices and bank statements to support their claim which were in relation to land purchase, construction costs and equipment purchased in relation to the project.

3. What assurances did Scotbeef give the Scottish Government that the proposed abattoir would be completed?

Assurances regarding project delivery were provided through the grant application form and the signed grant offer letter. These documents outlined the scope, timeline, and intended outcomes of the project, and confirmed Scotbeef’s commitment to deliver the abattoir in accordance with the terms of the FPMC scheme. These assurances form part of the contractual obligations and are used to assess eligibility and monitor compliance.

4. What tests did the Scottish Government make to assure themselves that the statement made by Scotbeef were true and realistic?

All applications under the FPMC scheme were subject to a panel review, which includes representatives from Enterprise Agencies, Local Authorities, and the food industry, along with oversight by an independent Food Industry Advisor. This process involves assessing the feasibility of the proposed project plans, reviewing financial and operational details, and evaluating the applicant’s capacity to deliver. These checks are designed to ensure that the statements made in the application are credible and realistic prior to grant approval.

5. What steps will the Scottish Government be taking to recoup the public funds previously awarded to Scotbeef?

The Scottish Government will consider the options available once the company’s intentions for the site are known.

6. If the Scottish Government's decides not to require repayment of the funds at this time, at what point will this decision be made?

Any decision will be made following full assessment of the facts and circumstances. The timeframe will depend on the detail of the case and the nature of the issues involved.

7. What are the criteria for recovering the funds, in the case such as this, i.e. non-delivery of the abattoir which was the subject of the FPMC grant?

The Scottish Ministers may re-assess, vary, make a deduction from, withhold, or require immediate repayment of a grant or any part of it in the event that;

• The Grantee commits a Default;
• The Scottish Ministers consider that any change or departure from the purposes for which the Grant was awarded warrants an alteration in the amount of the Grant;
• The Grantee fails to carry out the Project;
• In the Scottish Ministers’ opinion, the progress on the Project is not satisfactory; or
• In the Scottish Ministers’ opinion, the future of the Project is in jeopardy.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at https://www.gov.scot/foi-responses.