The government does not pay compensation for businesses affected by regeneration schemes, Economic Development Minister Laurence Skelly has confirmed.

Mr Skelly told the Keys the impact of any regeneration scheme had to be balanced against ’often substantial benefits to businesses delivered by the projects themselves’, adding: ’We should not forget, though, that projects should be carried out as efficiently as possible, while working closely with businesses likely to be affected.

’The department is unable to offer compensation payments to businesses directly affected by the disruption caused from regeneration projects. It is neither in its remit, nor does it have any funding for this purpose.’

He said DED’s financial schemes were aimed primarily at growing the economy through encouraging investment, increased productivity and employment and in supporting efficiency measures to improve profitability.

Business support includes start-up schemes providing training, mentoring, marketing and financial support. Grants were also available to improve a business property’s external appearance or energy efficiency.

’In addition, it is possible a rates rebate may be available through the rating system, administered by Treasury.’

DED officers often provide non-financial support.