Scottish local government minister George Kynoch said:
'Perth and Kinross Council applied last week for an additional capital allocation of £120,000 to cover the costs they will incur this year on professional fees in relation to ongoing work for the proposed Perth Flood Prevention Scheme. I am pleased to be able to meet in full their request for assistance with preliminary costs so that the council can make progress with development of this important Scheme.
'I recognise that the proposed flood prevention scheme is a matter of great concern to the Perth area and can well understand that this has led to considerable media interest in the question of future financing for the scheme.
'We are currently reviewing the mechanism for determining capital allocations for local authorities with a view to introducing new arrangements for 1997-98 onwards. We are well aware of the likely costs associated with major flood prevention schemes like the one proposed for Perth and will take account of this in reaching a decision on the way forward.'