A new funding package will provide a boost for the bus industry, support Scots engineering jobs and help reduce the nation’s carbon footprint.

Transport Minister Keith Brown revealed an extra £2.5 million for the Scottish Green Bus Fund on top of the £9.2million already invested in the scheme.

The Scottish Green Bus Fund has already allowed bus operators to purchase more than 70 of the eco-friendly vehicles, which produce 30% less emissions and use 60% less fuel than conventional diesel buses, since the scheme was launched in 2010.

The new funding, from last week’s 2013-14 budget, will allow more Scots bus operators to invest in low carbon vehicles, built by companies such as Alexander Dennis Ltd, which employs 900 people at its Falkirk headquarters.

In welcoming the news Falkirk West MSP Michael Matheson said

“This is fantastic news for companies like Alexander Dennis in Camelon who produce world leading low carbon vehicles.

“This additional £2.5 million will allow bus companies to buy even more environment friendly buses which in turn will help reduce Scotland’s carbon emissions.

“I am pleased to have played a part in campaigning for a green bus fund which not only helps our environment but also assists a major employer in my constituency who are world leaders in this new technology.