This item was published during the term of a previous administration that ended in April 2007
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Rural petrol stations scheme expands
30/08/2004
All rural petrol stations will be able to apply for funding from a scheme which supports the availability of fuel in rural Scotland following a review.
The Executive has decided to remove restrictions which prevent applications from some rural petrol stations considered too close to other stations which had already received a grant.
The Rural Petrol Stations Grant Scheme (RPSGS) is administered by Highlands and Islands Enterprise and Scottish Enterprise who will publicise the revised scheme through their network of Local Enterprise Companies.
Priority for funding will be given to applications which will bring the greatest benefit for local communities.
The move follows a review which found that the scheme provides substantial travel, economic and environmental benefits to many rural communities in Scotland, far in excess of its costs.
Transport Minister Nicol Stephen said:
"For many people and businesses in rural Scotland, a nearby petrol station is vital to improving convenient travel.
"That is why the Executive is determined to support rural petrol stations. We have made a good start with this scheme and we now want to go further.
"Keeping rural petrol stations open reduces unnecessary travelling which is good for local people, the local economy and the environment. By making the scheme available to all rural petrol stations, more communities can benefit from this support."
RPSGS was introduced in 1998 and provides funding to help with the costs of replacing tanks and pumps, meeting environmental controls, and protecting the station from groundwater.
It was extended in 2000 to include grants for the installation of equipment which supplies the more environmentally-friendly LPG fuel.
Funding to rural petrol stations so far amounts to £2.7 million and 61 petrol stations have received assistance.
The review of the Rural Petrol Stations Grant Scheme found it has:
- Prevented increased travel costs to and from petrol stations for local residents and retained other local services provided by the petrol station. Older people and people on low incomes have particularly benefited
- Prevented job losses caused by closure of the petrol station and increased travel costs for other local businesses
- Saved an estimated extra 280,000 vehicle miles per annum which would result from drivers travelling to and from petrol stations which are further away. It has also supported the installation of almost all the Liquefied Petroleum Gas supply in rural Scotland
The objective of the Rural Petrol Stations Grant Scheme (RPSGS) is to "support the retention of a sustainable and accessible network of fuel supply throughout rural Scotland".
RPSGS has been available to petrol stations for up to 50 per cent of the cost of essential capital expenditure on fuel supply infrastructure, subject to the eligibility criteria of being at least eight miles from the next nearest petrol station, of selling less than 1 million litre per annum and of being at least 30 minutes drive from the edge of an urban area with a population of over 30,000.
The changes to the scheme will be introduced from October 1. The restriction on the minimum distance to an urban area is being maintained to retain the scheme's rural focus.
Grants awarded to date include £126,610 to Colonsay Community Development for upgrading tanks and pumps, £66,646 to upgrade stations on Lewis, and £16,000 to install Liquefied Petroleum Gas equipment at a station in Newton Stewart.