Dispute over fire appliance deal

The airport is to be transformed into a major travel hub

A company due to supply fire equipment to a Highlands airport is at the centre of a dispute after its contract was cancelled by the local authority.

Argyll and Bute Council, which owns Oban Airport, refused to accept two new appliances from supplier Angloco.

But the company has disagreed with claims that it failed to meet required standards and delivery deadlines.

Angloco said it was looking to resolve the situation with the council "without resorting to legal means".

Ministers announced £6m funding for the airport in 2005, to create a major air hub for the Highlands and Islands.

Angloco wish to make it clear that in their opinion the vehicles are of satisfactory quality and contractually compliant Angloco statement

The project was also set up to create new, licensed airfields on the islands of Coll and Colonsay.

Argyll and Bute Council claimed the new appliances, ordered from Angloco in April 2006, would not have been accepted by the regulator, the Civil Aviation Authority.

But the Yorkshire-based company, which designs, manufactures and distributes fire fighting and rescue vehicles for UK and overseas customers, has disputed the comments.

"Angloco wish to make it clear that in their opinion the vehicles are of satisfactory quality and contractually compliant," the company said in a statement.

"It is also Angloco's opinion that they have not been responsible for the delay."

The statement added: "Angloco is looking to resolve the current position with the council, amicably, without resorting to legal means."

The Argyll and Bute authority is standing by its decision, and said it was making arrangements to have alternative fire appliances in place as quickly as possible.