Council chiefs in Aberdeen have launched a £750,000 fund to help oil workers fight back against the downturn in the North Sea.
Thousands of people have lost their jobs due to the plummeting price of oil, but now Aberdeen City Council has revealed plans to help workers set up their own businesses.
It is hoped the near £1million boost will encourage workers to establish their own high-tech ventures, while retaining their skills in the region.
The fund could also promote Aberdeen’s reputation as a “start-up Mecca” after it was revealed this week that 1,300 new businesses have opened in the north-east in the last year – more than any other region in Scotland.
Last night, the plan was hailed as “fantastic news” and welcomed as a way of keeping vital skills local.
The local authority’s finance convener, Willie Young, described the pot of cash as a way of turning the “current crisis into an opportunity”.
Around 75,000 jobs have already been lost in the industry downturn since the start of last year, and experts warn a further 35,000 jobs could be slashed by 2019.
As many as 4,000-a-year could come from Grampian, where 40,000 jobs currently depend on the sector.
The new fund is still in its infancy and the process of how to apply for a loan is still being determined.
Council officers will establish how the new initiative will be part of Business Loans Scotland, a nationwide programme in which councils, banks and the EU create a loan fund for small and medium enterprises.
It is understood that entrepreneurs will be able to apply to the council’s economic development department for loans of up to £100,000 over the three-year life of the scheme.
Last night Mr Young hailed the project and said: “Aberdonians are known the world over as terrific deal makers and the response by many of those who have lost their jobs during the current crisis has been to go into business for themselves.
“We need to innovate ourselves out of this crisis and offset the economic downturn. It’s obvious to me that we need to wrestle the positives out of the oil crisis in the form of driving entrepreneurship and challenging people to create new companies.
“The future of our energy sector is dependent on break-out thinkers and entrepreneurs, but they need help to hot house their ideas which will come from a lifetime’s experience. They also need the funding which will lead to the development of world leading technologies and skills in our oil and gas industry.”
He added that recent innovations in the beleaguered sector – such as 4D imaging, inspection drones, nanotech, tubing technologies and big data measurement processing – have already attracted investors and support.
Steve Todd, national secretary for the Rail Maritime and Transport workers union (RMT) said it was “vital” to keep skilled jobs in the UK.
“Any action taken to help people out of this crisis must always be welcomed,” he said.
“There is a huge risk that people could even leave the country if they can’t find jobs when made redundant.
“We all know how volatile the oil price is and the fear is that if it bounces back we would have already lost the skills from the North Sea.
“Aberdeen City Council has always been forthcoming with new ideas and we welcome any that can help our members and retain skills.”
Aberdeen entrepreneur Yvonne Gibson, who set up her own florist business after losing her job with BP, encouraged those in a similar position to consider branching out on their own.
The 56-year-old, from Kingswells, said: “This is a great idea, any help is welcome when starting a business and its important the city bucks this trend.”
