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Aberdeen to benefit from £504m government investment Aberdeen to benefit from £504m government investment
(about 2 hours 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 formally 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.
Harbour expansionHarbour expansion
Scotland's First Minister Nicola Sturgeon had written to Mr Cameron calling for more help for the area following job losses in the offshore industry.Scotland's First Minister Nicola Sturgeon had written to Mr Cameron calling for more help for the area following job losses in the offshore industry.
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 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.
It also includes proposals to help exploit the remaining North Sea oil reserves.It also includes proposals to help exploit the remaining North Sea oil reserves.
Fuller details of the deal are due to be announced at 13:00.Fuller details of the deal are due to be announced at 13:00.
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.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.
Analysis by Brian Taylor, BBC Scotland political editorAnalysis by Brian Taylor, BBC Scotland political editor
You would almost think there was an election on the horizon, wouldn't you?You would almost think there was an election on the horizon, wouldn't you?
The City Deal started in England, Manchester being the big example. There, it was connected to devolving power, to re-empowering the city of Manchester and the surrounding large towns and cities as well.The City Deal started in England, Manchester being the big example. There, it was connected to devolving power, to re-empowering the city of Manchester and the surrounding large towns and cities as well.
Glasgow is something comparable in that it was a large number of local authorities working together.Glasgow is something comparable in that it was a large number of local authorities working together.
I think the Aberdeen one is different - it is more like a joint investment package and it doesn't really involved any political devolution to the area.I think the Aberdeen one is different - it is more like a joint investment package and it doesn't really involved any political devolution to the area.
City Deals are not designed to be solely public sector investment - they are designed to be leverage that then brings in investment from the private sector.City Deals are not designed to be solely public sector investment - they are designed to be leverage that then brings in investment from the private sector.
From speaking to people here in Aberdeen there are constraints on development of connectivity, of the scope of the harbour, of the availability of employment.From speaking to people here in Aberdeen there are constraints on development of connectivity, of the scope of the harbour, of the availability of employment.
City Deals are designed to tackle those and release investment from the private sector.City Deals are designed to tackle those and release investment from the private sector.
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 offshore 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 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.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. It works as a stimulus.""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."
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.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 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.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.
'Unequivocal message''Unequivocal message'
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.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. He told Good Morning Scotland: "We've said we want to do more than is laid out in the City Deal. The projects that we are now talking about respond directly to the first request of the two councils, which was to do with connectivity to Aberdeen, which they feel is vital for the future."
"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. He added that the additional £254m "has to come from commitments in the capital programme and it has to come from future budgets".
"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."
The specific Scottish government funding is: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.
Further investmentFurther investment
The Scottish government has also called on the Chancellor to cut taxes for the industry in his budget in March.The Scottish government has also called on the Chancellor to cut taxes for the industry in his budget in March.
Aberdeen City Council leader Jenny Laing said the City Deal package was "only the first stage in transforming the north east of Scotland".Aberdeen City Council leader Jenny Laing said the City Deal package was "only the first stage in transforming the north east of Scotland".
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 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.