Feeds

Iomart £700k grant safe

For now at least

  • alert
  • submit to reddit

Boost IT visibility and business value

Scottish broadband provider Iomart looks set to hang on to £700,000 worth of public money it received from a local enterprise group - for the time being at least.

The cash - given in two grants - was made by Western Isles Enterprise and Highlands and Islands Enterprise (HIE) in Scotland to attract the "new economy" company to the region.

However, with the recent news that iomart is to shed 50 jobs doubts had been expressed as to whether it had met its obligations under the terms of the grant.

In a short statement, HIE said it was monitoring the situation but hoped that more jobs would be created in the future

The statement said: "We are in discussions with iomart concerning their ongoing obligations to the HIE network.

"However the financial assistance they have received is discretionary and if they develop a business plan that sustains any reduced level of employment, and gives us the confidence that job numbers will climb again in future, then we would be likely to work alongside the company to help them through this period without invoking our rights to reclaim the public sector investment," it said.

A report in a Scottish newspaper likened working conditions at Iomart to a "sweatshop". ®

Related Story

Iomart tainted by 'sweatshop' allegations

The essential guide to IT transformation

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Ancient pager tech SMS: It works, it's fab, but wow, get a load of that incoming SPAM
Networks' main issue: they don't know how it works, says expert
Trans-Pacific: Google spaffs cash on FAST undersea packet-flinging
One of 6 backers for new 60 Tbps cable to hook US to Japan
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.