The First Minister says he will look into “completely reasonable” concerns around recouping public investment into Sutherland Spaceport after it was put on hold by the company developing the site.

The spaceport on the north coast of the Scottish mainland received a reported £14.6 million in investment from the public sector over several years, including from the Scottish Government and Highlands and Islands Enterprise (HIE).

However on Wednesday Orbex, a rocket manufacturing company which was also constructing the spaceport, suddenly announced it is pausing development at Sutherland and will instead launch from the rival SaxaVord Spaceport on the northern tip of the Shetland Islands.

The spaceport was a positive development for the Sutherland community, bringing 40 jobs and economic benefits to a part of the Highlands that has suffered from depopulation

It means the Sutherland site on the A’Mhoine peninsula lies partially completed – with a “floating road” over a giant peat bog stretching more than two kilometres but without launch facilities.

Orbex now hopes to launch its first rocket from SaxaVord in 2025.

It is one of a number of companies which will be using launch pads at the spaceport on Unst to carry satellites into orbit, tapping into a lucrative global market for space launches.

Labour’s Rhoda Grant raised the issue at First Minister’s Questions on Thursday.

She said: “Yesterday we heard that Sutherland Spaceport has been mothballed by Orbex.

“The spaceport was a positive development for the Sutherland community, bringing 40 jobs and economic benefits to a part of the Highlands that has suffered from depopulation.

“Orbex have received £14.6 million in investment for the spaceport.”

She asked the First Minister to intervene to see if development can continue, or otherwise “make sure the public investment can be recouped and used to bring jobs and an economic boost to that part of the Highlands”.

John Swinney said he understood the points raised by Ms Grant, saying ministers would intervene to “see if there is any other way that this can be taken forward”.

There will be contractual arrangements that are put in the provision of grant funding

He continued: “(Ms Grant) raises what I think is a completely reasonable question about public investment that has been committed – either spent or committed – and how that stands.

“There will be contractual arrangements that are put in the provision of grant funding.

“I will explore those issues and reply in writing to Rhoda Grant about what steps can be taken to address what I recognise to be a legitimate issue that she’s raised with me today.”

Orbex, based in Forres, had initially intended to use the Sutherland Spaceport to launch its 19-metre tall rocket called Prime, saying its operations would be carbon neutral.

On Wednesday chief executive Phil Chambers said the move to SaxaVord would help the firm deliver on its core mission of producing rockets, rather than building spaceports.

A spokeswoman for Orbex said: “We have not abandoned Sutherland Spaceport, we have decided to pause construction.

“We will retain the lease to build and operate the Spaceport as this will give us flexibility to increase launch capacity in the future.

“The decision enables the company to direct more funding to the development of a new, medium-sized launch vehicle called Proxima and to utilise SaxaVord Spaceport, which is already licensed.”

Orbex also said public investment in the project only amounts to £2.3 million.

Later on Thursday, Scottish Conservative MSP Edward Mountain said the announcement had been a “kick in the teeth” for local residents in Sutherland.

He said: “Far too much time and public money has been wasted on this project, especially in relation to the 2km floating road which will now sadly lead to nowhere.

“I am prepared to work, on a cross-party basis, with all those involved to try and reverse this decision, especially as much of the infrastructure is already in place.”

Ms Grant, who is a Highlands and Islands MSP, said she welcomed the First Minister’s response.

She added: “I urge the Scottish Government to intervene as Sutherland desperately needs this investment, if the spaceport cannot be salvaged, I urge them to recoup the public money that has been spent and to again invest it in Sutherland and create the jobs we need to stop depopulation.”