Murdo Fraser MSP has asked the SNP Government why it gave a grant of nearly £2 million to a renewables firm which has fallen into administration with debts of almost £23 million.
The Scottish Conservative politician recently raised the matter he described as a “sorry episode” with Ivan McKee, Minister for Business, Trade, Tourism and Enterprise, during General Questions in the Chamber at Holyrood, after being contacted on the issue by a constituent.
Recycling Technologies was awarded a grant of £1.7 million in 2018 via Zero Waste Scotland, for its role in a recycling scheme, called Project Beacon, which was to be based in Perthshire, near the site owned by Binn Farm.
The aim was to create a plant in Scotland that would ‘chemically recycle’ plastics to make new materials or other chemical products. However, Project Beacon has never seen the light of day and Recycling Technologies looks set to be dissolved after it was found to have a deficit of around £22.8 million. The firm had hoped to have its first commercial site running at the Project Beacon site in Perthshire.
Mr Fraser, who represents the Mid Scotland and Fife region, commented: “In September, Recycling Technologies went into administration with £22.8 million of liabilities, and just £1 million in assets. This company was given a grant of £1.7 million of taxpayers’ funds from Zero Waste Scotland in 2018. However, according to Companies House, accounts of the company lodged on October 11, 2017, raised concerns about the ability of the company to continue as a going concern at that point.
“So, I therefore asked the Minister why this grant of £1.7 million of taxpayers’ money was paid to a company when there were concerns about its ongoing ability to trade. I also asked the Minister if any of this money is likely to be recovered to the taxpayer, and what lessons have been learnt from this sorry episode.”
Mr Fraser continued: “Mr McKee said he could have had an answer on this issue if he had prior warning about my question on Recycling Technologies but this was a weak response, as he should have already known or been made aware of this shocking issue. He did promise to look into why the grant was given, which is encouraging, but it still begs the question as to why this grant of nearly £2 million in public funds was awarded to Recycling Technologies in the first place by the SNP Government, especially when you consider it became apparent back in October 2017 that questions were posed about their ability to continue given their poor financial position.”
Zero Waste Scotland is a not-for-profit environmental organisation funded by the SNP Government and European Regional Development Fund.
