Speaking after the announcement Mr Doris said: "This funding is more than welcome in an area which needs to protect every job there is" "Allied vehicles are a major employer in Possilpark and this funding from the Scottish Government will allow them to not only maintain but more significantly expand the Allied Vehicles operation there. The expansion of local jobs within one of the most impoverished parts of Maryhill Constituency can only bring benefit to the North of Glasgow as a whole"

Mr Mather said: "Allied Vehicles' ambition to expand not only brings jobs and investment to Glasgow, it also supports Scotland's growing strengths in the manufacturing industry sector.

"Today's report demonstrates that Regional Selective Assistance is vital, in the absence of tax raising powers, if we are to encourage investment and job creation. The scheme will be crucial as we move towards our goal of increased, sustainable economic growth.

"It is also encouraging to see the number of Scottish companies benefiting from RSA. This shows that the scheme not only helps attract global companies to Scotland, it also supports and helps businesses based here to flourish."

Allied Vehicles chairman Gerry Facenna said:

"As a growing company owned and headquartered here in Glasgow, it is encouraging to know that support has been made available to assist our further development as a business.

"The RSA grant will enable us to expand the range of specialist vehicles built here in Scotland, as well improving the overall efficiency of our manufacturing operations."

Notes:
More than 7,300 Scottish jobs could be created or safeguarded with the aid of £48.9m in Regional Selective Assistance (RSA) funding, it was announced today.

The latest RSA quarterly report shows that 63 businesses in Scotland accepted grants linked with planned capital expenditure of more than £194.7m. Of those, 38 firms are indigenous to Scotland.

Enterprise Minister Jim Mather announced details of the awards during a visit to Glasgow-based firm Allied Vehicles, which has accepted an RSA offer of £600,000 towards the expansion of its Possilpark premises.

The project involves planned capital expenditure of £4m and aims to create 60 new jobs and safeguard a further 30. Regional Selective Assistance (RSA) is the main national scheme of financial assistance to industry. It provides discretionary grants for investment projects that will create or safeguard jobs in Assisted Areas - areas designated for regional aid under European Community law. The scheme is administered by the Innovation and Investment Grants (IIG) unit of the Scottish Executive.

Payments of RSA are made in instalments, typically over several years, provided that job and project expenditure targets are met.

The amounts quoted here and in the report therefore represent the maximum grant potentially payable if the project is satisfactorily completed, and not the amount actually paid to date.

All job numbers are based on firms' forecast figures at the time a grant is offered, and are subject to change depending on future economic conditions and other factors affecting the business concerned.

Allied Vehicles Limited was established in 1993 and has reintroduced production-line car manufacturing to Scotland for the first time since the closure of the Linwood plant in 1981. It provides specialist cars, MPVs and minibuses for a wide range of users including taxi operators, local authorities, community transport groups, schools, healthcare providers and disabled individuals. Allied is now one of the UK's leading suppliers of wheelchair accessible vehicles.

The firm is known for its purpose-built taxis, the Peugeot E7 and Mercedes-Benz M8, offering a purpose-built hackney carriage with much enhanced modern safety and comfort features, as well as greater capacity for both passengers and luggage.

In addition, the company produces a number of other wheelchair accessible vehicles and has grown rapidly to become the largest mobility vehicle converters in Scotland and one of the leading suppliers to the UK-wide Motability Scheme.

In order to increase production capacity and improve efficiency the company will undertake a project to expand its business onto another site in the local area.