Referral of the proposed subsidy to Kishorn Port Limited by Highlands and Islands Enterprise
Source: gov.uk (2025-05-09)

The Subsidy Advice Unit (SAU) has published a report providing advice to Highlands and Islands Enterprise (HIE) concerning its proposed Subsidy to Kishorn Port Limited (KPL).

Administrative timetable

Final report

9 May 2025: The SAU has published its report providing advice to HIE concerning its proposed subsidy to KPL. The report sets out the SAU’s evaluation of HIE’s Assessment of Compliance of its proposed subsidy with the requirements set out in the Subsidy Control Act 2022.
- Final report (https://www.gov.uk/government/publications/report-on-the-subsidy-to-kishorn-port-limited-by-highlands-and-islands-enterprise) (9.5.25)
Request from HIE

26 March 2025: The SAU has accepted a request for a report from HIE concerning its proposed subsidy to KPL. This request relates to a Subsidy of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of HIE’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy provided by HIE

Highlands and Islands Enterprise (HIE) is proposing to grant Kishorn Port Limited (KPL) a direct grant limited to £23,807,000 or 57% of eligible costs for a development at Kishorn Port, whichever is lesser; the purpose, terms and conditions will be set out in a Legal Undertaking. HIE proposes to make the subsidy award using its powers under section 8 of the Enterprise and New Towns (Scotland) Act 1990.

The subsidy will support Phase 1A of a port expansion which will act as enabling infrastructure for a wider masterplan. Phase 1A will entail a 100m x 60m extension of the dry dock and reclaim 9ha of additional laydown assembly space. It will lead to the creation of 62 FTE jobs, but will enable the employment of 998 FTEs with the development of 1B and further private sector investment at the port.

The works are anticipated to take 15 months to complete and grant payments will be released in arrears on evidence of completed work and satisfactory progress reports. The enhanced facilities will position KPL to supply the offshore wind renewable energy market.

KPL is a joint venture between two Scottish firms who acquired the site in 2008 and brought it back into productive use. It has one of Europe’s largest dry docks. The port is situated in a remote area in the north-west of Scotland with below average levels of working population and a high dependency on (low paying) seasonal employment in tourism, agriculture, forestry and fishing. Expansion of the port offers the best opportunity within the region to create permanent year-round full-time employment to address the equity imbalance.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning HIE’s proposed subsidy to KPL, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Please send your submission to the public authority xxx@xxx.xx (mailto:xxx@xxx.xx).

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with HIE. The SAU will send a copy of your submission to HIE together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with HIE using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Contacts
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)