The economy of the Inverness and Nairn Enterprise (INE) area continues to prosper despite a series of setbacks over the year. Unemployment is below the Highlands and Islands Enterprise (HIE) average and new business start-ups have increased.

Launching INE's 9th annual report today (Wednesday 11th October) chief executive Bill Sylvester said: "Our fears for the future of the oil fabrication industry were realised with mass redundancies at Barmac's Nigg and Ardersier yards but INE, HIE and other partners are working hard to alleviate the effects of redundancy on workers and their families.

"We have helped create new employment in the area, for example at Nairn where Cap Gemini's expansion created valuable new jobs, presenting an opportunity for supporting the incomes of families who are affected by the rundown of the two fabrication yards. This operation now supports almost 100 jobs with a further 75 anticipated at the centre, which provides customer advice for the financial services sector.

"Despite the difficulties facing the oil industry, there have been many positive developments including the opening of The Green House which marks a major step forward in the realisation of a key element of our strategy, to encourage more technology and healthcare industries, through the availability of incubator units for fledgling businesses. The new building at the Beechwood Business Park also houses INE's new headquarters.

"With help from INE, Westminster Healthcare also moved to Beechwood this year. Their new purpose built premises now houses the company's national headquarters and they aim to employ over 100 staff by 2003."

INE has helped to create or retain 525 jobs in the area, a substantial increase on the previous year, and grants totalling almost £2 million (pounds) have been awarded to a wide variety of projects. The number of new business start-ups is also on the increase with 26 this year compared with 23 in 1998-1999.

Ken Mackie, who took over from Grant Sword as chairman of INE this year, said: "The local economy is getting stronger and there is a great deal of optimism for the future growth and prosperity of the area. This year we have made good progress in achieving current objectives in the key areas of strengthening communities, growing businesses and developing skills.

"We have placed particular emphasis on skills development in a bid to alleviate the impact of redundancies at Barmac with INE, HIE and four other LECs launching a £224,000 training and job placement programme with European Social Fund assistance of £112,000 . Other training and skills development initiatives, including help for inward investors with training projects, are helping to create a strong, confident local work force.

"Investors in People (IiP), a national award which promotes the development of staff and skills, continues to be a popular business development tool with 32 IiP recognitions, including INE's 100th IiP which was awarded to Granit Union, with a further 23 organisations having committed to the programme.

"Strengthening communities is a priority for INE, and this is reflected in the level of support awarded to community based projects during the year. Over £260,000 of financial assistance was given to community projects including £40,000 towards the cost of establishing a new day care centre for elderly residents in Glenurquhart and £62,300 for 16 Community Action Grants. Various festivals, including the popular Nairn Jazz Festival and various sports projects have also been supported, with events such as the Walker Cup golf tournament at Nairn helping to promote the area to an international audience through television coverage.

"Despite the problems, confidence in the local economy is growing and this can be seen in the amount of businesses growth happening in the area. Nairn firm, Ashers announced plans to move to the Balmakeith Industrial estate allowing the family firm to expand the business and begin producing a range of gift products, while Inverness Glass Limited also expanded their operations with a move to a purpose built factory in the town's Longman Industrial estate."

Copies of the INE annual report, which provides details of its results, finances and is illustrated by projects assisted, are available free from its offices at the Green House, Beechwood Business Park, Inverness or by telephoning 01463 713504.