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Council bosses have been asked for an explanation why the business case for a ice plant went so badly wrong.

 

Cllr Roddie Mackay demanded a report into the background why the ice plant at Kallin harbour is making a loss and being closed down just a few years after it was built at a cost over an estimated third of a million pounds.

 

No boats are buying ice from the facility yet consultants hired by the council to examine the business case previously concluded that a plant of appropriate size would be economically viable and potentially profitable.

 

Loan repayments for the plant were to be met from the sales of ice to local shellfish boats but income does not even cover operating costs.

 

A £11,500 loss was reported for 2014.

 

Sales dropped significantly to estimated figures of around 60 tonnes for the 12 months to this April - nearly a quarter of the 300 tonnes required to financially break even.

 

A council review said: "There is no longer any current demand for ice at Kallin."

 

Technical services and development services chiefs have to submit a report over ice plant to the next set of council meetings.

 

Councillor calls for report over ice plant financial disaster

 

13 June 2016