Highlands and Islands Enterprise, Kishorn Port Limited

The Highlands and Islands Enterprise, Kishorn Port Limited proposal, intended for the development and expansion of Kishorn Port, is for a direct grant limited to the lesser of £23,807,000 or 57% of the eligible costs.

Our key takeaways from the Subsidy Advice Unit (SAU) report are:

• Where two policy objectives are set out in an assessment, sufficient detail must be provided on both in relation to how the subsidy contributes to achieving these.
• In relation to all policy objectives identified, detail should be provided to explain and evidence how market failures associated with the investment will be addressed.
• In explaining other methods considered for achieving the policy objective, assessments should utilise supporting evidence like financial appraisals and explain, if relevant, why any proposals, such as an equity investment, were discounted.
• Where assessments identify that the value is large in comparison to current operating costs, they should consider what measures can be implemented to ensure proportionality.
• Where certain elements of a site are not ringfenced for the relevant purposes, information should be included on the potential impact to competitors in addition to the normal considerations on the potential impacts to competition and investment.
• Where the location is being used for purposes other than those identified in the policy objectives, assessments should outline how these purposes remain consistent with Principle A.

Find Out More