§ Mr. Raymond S. RobertsonTo ask the Secretary of State for Scotland if he has finalised the arrangements for the bridging fund to assist local businesses in Shetland affected by the recent incident involving the MV Braer.
§ Mr. LangI am pleased to announce that agreement has been reached on the operation of the bridging fund which I announced in my statement to the House on 11 January.
The bridging fund is designed to help in particular the farming, fishing and fish-farming industries in Shetland, and prevent economic hardship to primary producers facing temporary cash-flow difficulties pending the settlement of compensation claims. It is of course without prejudice to the Government's view that the polluter must pay.
After consultation with Shetland Islands council, the shipowner's insurers the P and I Club—and the International Oil Pollution Compensation Fund—IOPC fund—it has been agreed that requests for advances from the bridging fund should be made through the "single door" of the Braer claims office in Lerwick. Claims from businesses which qualify under this scheme and which are, in the view of the club and the IOPC fund, likely to receive compensation in due course will be passed to the islands council, which will make the payment from the bridging fund. The Scottish Office will now pay an initial grant of £1 million to the council to enable it to start meeting claims. Further payments to the council will be made as claims arise. In due course, when each compensation claim is settled, the amount of the advance will be paid back to the bridging fund.
I currently intend that payments will be available until 31 March 1994, but this date may be varied, in particular if there is a continuing need for the scheme, or if it becomes clear that the flow of compensation settlements is sufficient to meet continuing needs.
I am glad that the Government have been able to take steps to prevent the people of Shetland from suffering economic hardship at this very difficult time for them, and I am grateful for the co-operation of the council, the shipowner's insurers and the International Oil Pollution Compensation Fund in putting together these arrangements so quickly.