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The Western Isles will benefit from a share of new fund being set up to help community projects specifically  in coastal areas. The scheme will hive off half the profits the Crown Estate makes from seabed rents for salmon farms, seaweed harvesting and offshore wind farms.

Danny Alexander, Chief Secretary to Treasury, is launching the Coastal Communities Fund in Stornoway today (Fri).

He told Hebrides News: “It will take half of the revenue the Crown Estate takes in from its marine estate, from all sorts of industries on the coastline.

“I think its about time the revenue that we get in from these industries is shared with the people who inhabit the coastline.”

Mr Alexander says there will be specific Highlands and Islands fund - worth £1.85 million - a separate one for the rest of Scotland plus funds for England, Wales and Northern Ireland.

He explained: “There will be a pot set aside for the revenues raised in the Highlands and Islands for projects that are here in the Highlands and Islands. That will enable places in the Western Isles, where there is a particular use of the coastline already, to benefit from those things.

It will be run independently by the Big Lottery Fund and local groups would have to submit an application.  Commercial businesses are excluded but social enterprises, like a community shop or co-operative can apply.

Examples also include support for developing renewable energy, improving skills or environmental safeguarding or improvement. The fund opens in April and is worth £24 million in total.

Chancellor George Osborne, said: “This new funding shows that the Government is committed to supporting coastal communities and ensuring that they benefit from the revenue that our coasts and the Crown Estate produce.

“I know that coastal communities play a vital role in wellbeing of the whole country and I am glad that we can provide support for them through this new fund and ensure that they continue to benefit the whole of the UK.”

Comhairle nan Eilean Siar says it is a step in the right direction but wants the UK Government to give more local control of the cash.

Comhairle Leader Angus Campbell said: “I do not believe that a challenge fund controlled by the Lottery is the way these funds should be administered. Local communities should control and disburse income that is generated in their waters, not have to go through a bidding process to get what should rightfully be theirs.

“I think a local trust, representing the Western Isles community, is the way forward in terms of controlling and distributing coastal generated income. Nevertheless, this is a good beginning on which to build.“

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New community fund hives off Crown Estate profits       22/7/11

Treasury minister Danny Alexander sees Hebridean Seaweed’s harvesting machine in action at Linshader.