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Aberdeen to benefit from £504m government investment Aberdeen to benefit from £504m government investment
(35 minutes later)
The north east of Scotland has been allocated £504m of funding over the next five to 10 years to improve infrastructure and attract jobs.The north east of Scotland has been allocated £504m of funding over the next five to 10 years to improve infrastructure and attract jobs.
A £250m "City Deal" for Aberdeen will see the UK and Scottish governments jointly invest in the area.A £250m "City Deal" for Aberdeen will see the UK and Scottish governments jointly invest in the area.
Separately, the Scottish government has promised an extra £254m for Aberdeen and Aberdeenshire.Separately, the Scottish government has promised an extra £254m for Aberdeen and Aberdeenshire.
Scottish ministers have announced investment to improve rail links and other infrastructure projects.Scottish ministers have announced investment to improve rail links and other infrastructure projects.
UK Prime Minister David Cameron is to visit Aberdeen to announce the City Deal and support for the oil and gas industry. UK Prime Minister David Cameron is to visit Aberdeen to formally announce the City Deal and support for the oil and gas industry.
Scotland's First Minister Nicola Sturgeon had written to Mr Cameron "urgently" calling for a deal following job losses in the industry.Scotland's First Minister Nicola Sturgeon had written to Mr Cameron "urgently" calling for a deal following job losses in the industry.
The City Deal agreement includes funding for an energy innovation centre and the expansion of Aberdeen harbour. The City Deal agreement includes funding for an energy innovation centre and the expansion of Aberdeen harbour to help the city compete for oil and gas industry decommissioning work.
The Aberdeen agreement, which will be signed by Scottish Secretary David Mundell on behalf of the Westminster government, follows a similar deal for Glasgow in 2014. Safeguard jobs
It also includes proposals to help exploit the remaining North Sea oil reserves.
The Aberdeen agreement, which will be signed by Scottish Secretary David Mundell on behalf of the UK government, follows a similar deal for Glasgow in 2014.
There had been calls for greater support for Aberdeen, with the oil and gas industry struggling with low oil prices.There had been calls for greater support for Aberdeen, with the oil and gas industry struggling with low oil prices.
Mr Cameron is visiting the city to meet local workers and senior industry executives, and is expected to announce further UK government measures to safeguard jobs. Mr Cameron is visiting the city to meet local workers and senior offshore industry executives, and is expected to announce further UK government measures to safeguard jobs.
Mr Mundell told Good Morning Scotland: "The money would be available over a five to 10 year period as these projects go forward but what is also really important about the City Deal is that it leverages in other money. Mr Mundell told the BBC's Good Morning Scotland programme: "The money would be available over a five to 10 year period as these projects go forward but what is also really important about the City Deal is that it leverages in other money.
"So that as well as the money that is coming in as part of the City Deal, there is about £1.2bn which that money can help bring forward from the private sector, from the universities and from the councils themselves. "So that as well as the money that is coming in as part of the City Deal, there is about £1.2bn which that money can help bring forward from the private sector, from the universities and from the councils themselves. It works as a stimulus."
"It works as a stimulus."
'Crucial sector''Crucial sector'
The City Deal includes proposals to support exploiting remaining North Sea oil reserves, and work at Aberdeen harbour to help the city compete for decommissioning work. The City Deal includes proposals to help exploit the remaining North Sea oil reserves, and the expansion of the city's Aberdeen harbour to help the city compete for decommissioning work.
A new ministerial group on oil and gas, chaired by Energy Secretary Amber Rudd, has been set up to help support the industry.A new ministerial group on oil and gas, chaired by Energy Secretary Amber Rudd, has been set up to help support the industry.
The group met for the first time on Wednesday, agreeing to produce an oil and gas workforce plan in the spring, focusing on what the government can do to support workers at risk of redundancy. The group met for the first time on Wednesday and agreed to produce an oil and gas workforce plan in the spring, focusing on what the government can do to support workers at risk of redundancy.
Ms Rudd said: "The UK government stands 100% behind our oil and gas industry and the thousands of workers and families it supports.
"It's a fantastic industry which benefits Scotland and the whole of the UK, but clearly the low oil price brings real challenges and we're determined to do everything we can to take advantage of the UK's broad shoulders and help build a bridge to the future for UK oil and gas."
'Unequivocal message''Unequivocal message'
Announcing the extra £254m from the Scottish government, Infrastructure, Investment and Cities Secretary Keith Brown said the money would be targeted towards the delivery of improved transport and digital connectivity and local housing programmes requested by the local authorities. Announcing the extra £254m from the Scottish government, Infrastructure Secretary Keith Brown said the money would be targeted towards the delivery of improved transport and digital connectivity and local housing programmes requested by the local authorities.
"This announcement of additional funding sends an unequivocal message that Aberdeen and the north east remain central to driving future growth and prosperity in Scotland," he said."This announcement of additional funding sends an unequivocal message that Aberdeen and the north east remain central to driving future growth and prosperity in Scotland," he said.
"While I support the City Deal agreement, the Scottish government recognises that there is more support that can be made available to the region and that will deliver real economic benefits."While I support the City Deal agreement, the Scottish government recognises that there is more support that can be made available to the region and that will deliver real economic benefits.
"That is why we have decided to invest £254m of additional Scottish government support in key infrastructure in the north east to cement Aberdeen as one of the world's leading cities for business and industry."That is why we have decided to invest £254m of additional Scottish government support in key infrastructure in the north east to cement Aberdeen as one of the world's leading cities for business and industry.
"It is clear that the appetite of the councils, and the needs of the area require more.""It is clear that the appetite of the councils, and the needs of the area require more."
Specific Scottish government funding: The specific Scottish government funding is:
Nicola Sturgeon will visit Aberdeen on Monday for meetings with the oil and gas industry where she will make a further announcement of Scottish government action to support innovation, exploration, skills and access to finance for the North Sea industry.Nicola Sturgeon will visit Aberdeen on Monday for meetings with the oil and gas industry where she will make a further announcement of Scottish government action to support innovation, exploration, skills and access to finance for the North Sea industry.
The Scottish government has also called on the Chancellor to cut taxes for the industry in his budget in March.
Export marketsExport markets
Aberdeen City Council leader Jenny Laing said: "Our City Region Deal recognises the need to continue investment and innovation in the energy sector not only in terms of decommissioning but also in the related technologies that will help deepen our presence in export markets. Aberdeen City Council leader Jenny Laing said the City Deal package was "only the first stage in transforming the north east of Scotland".
"However, the package announced today is only the first stage in transforming the north east of Scotland and I look forward to continuing our discussions with all layers of government." Martin Kitts-Hayes, co-leader of Aberdeenshire Council, said the package marked a "huge opportunity" for the region, and would open the doors to further investment in key areas such as infrastructure and housing.
Martin Kitts-Hayes, co-leader of Aberdeenshire Council, said: "We believe that this marks the start of a huge opportunity for the Aberdeen City region and we welcome the significant investment that will open the doors to further investment in key areas such as infrastructure and housing, that is so fundamental to the region."
Ms Sturgeon had written to Mr Cameron calling for the deal to be signed "as soon as possible".
She said it was "vital that the government sends a strong and unequivocal signal that it is fully supportive of the region", adding: "The city deal provides a good opportunity to signal our respective governments' support for the region."
Deputy First Minister John Swinney has also called for talks with Chancellor George Osborne ahead of the budget in March, urging him to ease the "tax burden" on North Sea industry.