SNP unveils £95m fund to create new jobs

ALEX Salmond yesterday unveiled a £95m EU funding package that he claimed would create 8,000 jobs and offer another 75,000 people the opportunity to develop skills that will help them find work.

In his speech to the SNP's spring conference, the First Minister claimed the European cash would help Scotland through the recession.

He also said businesses and other groups in Scotland would be invited to make their case on economic matters direct to the Scottish Cabinet. The invitation to make presentations to Cabinet meetings will be aimed at "social partners" such as business and trade union organisations, the voluntary sector and faith groups.

Addressing delegates at the Thistle Hotel in Glasgow, Salmond claimed that the measures he was taking contrasted with the approach of Margaret Thatcher's Conservative government during the economic crisis of the early 1980s. "Many of you remember all too well the damage that was done in the early eighties when an uncaring London government walked away from the effects of the recession," Salmond said.

"They left a generation to struggle with the impact on jobs, on families, on lives. Our Government knows Scotland's got what it takes to equip our people with the skills they need and Scotland's got what it takes to help people hit by redundancy back into work."

A total of 129 projects across Scotland will benefit from £70.2m in new allocations from the European Regional Development Fund (ERDF) and £24.7m in allocations from European Social Fund (ESF).

According to Salmond, the 50 new ERDF projects, focusing on business growth, urban regeneration and rural development, will support the creation of almost 8,000 jobs.

The 79 new ESF projects are expected to support 75,000 people gain or sustain employment opportunities through training.

The ERDF projects include the John Logie Baird project in Glasgow (£2.4m), which will create a national centre for innovation. This Innovation Village in the Merchant City will bring together enterprises and support services, while also assisting the continued regeneration of the area.

Under the Rural Action Plan for Moray (£1.61m), the projects receiving support include Buckie Business Park, Elgin Industrial Site, Moray Learning Centres and a Sustainable Travel Scheme. And the West of Scotland Loan Fund (£6m) will provide loans of up to £50,000 to new and growing businesses. It will invest in businesses that have failed to receive financial support from the private sector, including banks.

The First Minister's invitation to Cabinet was extended to Jim Murphy, the Scottish Secretary. Murphy was invited just one week after the Labour minister wrote to Salmond suggesting he could make a contribution to the Scottish Cabinet.

Last night Murphy said: "I am glad the First Minister has accepted my offer to make a presentation to the Scottish Cabinet. It comes after John Swinney accepted the central importance of the UK Government and the part it will play in getting Scotland through the downturn when he agreed to the joint publication of the Real Help for Scotland document.

"I welcome the recognition this is a time for the UK Government and Scottish Government to work together."

Salmond's speech made several references to the SNP's new slogan 'We've got what it takes', which was launched at the two-day conference, which also saw the SNP unveil the new leaders of their European and Westminster election campaigns. Both will be based in Dundee. The European campaign will be led by Joe Fitzpatrick, MSP for Dundee West, and the Westminster campaign by Stewart Hosie, MP for Dundee East.

Salmond's words failed to impress Labour. Anne McGuire, MP for Stirling, said: "This was a low-key speech from Mr Salmond. It's unsurprising, given his central claim – that Scotland would be better off separated from the rest of the UK – is simply not correct.

"When Scotland's banks failed, the Labour Government's action to protect savings, mortgages and as many jobs as possible shows that we are better off as part of the UK."