How it will support businesses affected by the outbreak of foot-and-mouth disease.

Following extensive consultation with the industry affected, the Executive has decided to put resources behind a three-part emergency package of assistance for 2001-02 to help stabilise businesses in Scotland hit by the foot-and-mouth disease outbreak. This is in addition to the commitments already provided by the UK Government.The additional Scottish emergency package consists of:First, a range of measures to help affected businesses with their rates will be available, initially estimated to be worth £3.5 million. The Scottish Executive will fund 95% of the cost of hardship relief for the most affected businesses. The funding will be available for businesses with a rateable value up to £12,000 in rural local authority areas. For other businesses we will fund 75% of the costs of hardship relief. We are encouraging local authorities to consider deferring rates payments for affected businesses. Local authorities can grant relief for premises which are not in use because of the foot-and-mouth disease outbreak. Businesses can also apply for a reduction in their rateable value.Secondly, an initial £5 million will be made available now for visitscotland to tackle the misconceptions in key markets about the outbreak, build on the framework provided by the Comeback Code published on Friday 23 March, and to bring forward a range of other measures including support for local marketing initiatives. visitscotland will work closely with the British Tourist Authority to achieve the maximum benefit for Scotland from the work which they are doing around the world to put the facts across. Further support for a longer term recovery plan will be available.Thirdly, a £5 million immediate boost for the Enterprise Networks to provide emergency advice and assistance to affected businesses to support survival workshops, one-to-one counselling, assistance on minimising liabilities and access to other sources of support such as the banks, the Inland Revenue and the Customs and Excise.The Executive is particularly conscious of the severity of the impact in Dumfries and Galloway and will discuss with the Enterprise Networks and visitscotland ways of ensuring that the help gets to those who need it most.This £13.5 million emergency package adds to the measures announced by the UK Government on 20 March, which include:1. Request from Ministers to Inland Revenue and Customs officials to take a very sympathetic approach to businesses experiencing financial problems as a result of the outbreak. The Revenue Departments already have power in specific circumstances to defer payment of taxes and National Insurance contributions and agree extended arrangements for time to pay. They will make maximum use of this flexibility for agricultural, transport, tourism and related retail businesses in the countryside that cannot pay debts because of cash flow problems, where cash flow assistance through rescheduling tax or NIC liabilities would help.2. Discussions with the banks to ensure continuing credit for small businesses badly affected by the impact of foot-and-mouth disease, including the use of the Small Firms Loan Guarantee Fund.3. Indication from the Benefits Agency that Job Seekers Allowance may be available to both employees and self-employed people, out of work as a result of foot-and-mouth; and the Department of Social Security will be making their procedures as fast and flexible as possible.This represents a comprehensive plan of action to tackle the immediate difficulties facing Scottish businesses. The Executive is also engaging in developing plans for longer-term recovery and to build a way forward from the present difficulties.