THE Scottish executive is to encourage businesses to start up alongside Scotland’s Millennium Link Canal by providing grants and assistance packages.

The executive is working with Scottish Enterprise, British Waterways and local authorities to identify development proposals for the restoration of canal-side land, focusing on the Falkirk area.

Scottish Enterprise is putting together a business development support initiative to offer advice packages to companies planning developments along the canal route.

Iain Gray, the enterprise, transport and lifelong learning minister, has already pledged £2.8m to help identify the untapped potential of Scotland’s canal network.

On Thursday, Gray will launch the Edinburgh Quay waterside project on the canal at Fountainbridge, a £60m retail, restaurant, residential and office development at the Edinburgh end of the Millennium Link Canal. The minister met officials in Sweden last month to learn from the extensive economic regeneration work that has been done to develop tourism and other opportunities along the country’s Gota Canal.

Gray said: “Developing a canal culture in Scotland stands not only to benefit tourism, but also to stimulate local communities, jobs and the economy across the country.

“The Falkirk Wheel, which is the only rotating boatlift wheel of its kind in the world, has already attracted more than 300,000 visitors to the region.

“Economic studies predict the Millennium Link could lead to an increase in annual tourism spending of more than £10m and, in the longer term, the creation of 4,000 new jobs.”

Gray said the laying of fibre optic cables along the canal offered e-commerce opportunities for canal-side businesses.