Commenting on the revised proposals for areas eligible for Assisted Area Status, chairman of Highlands and Islands Enterprise Dr Jim Hunter said: "We are bitterly disappointed that the new proposals for assisted area status in Scotland do not include the substantial Inverness and Nairn, and Moray, Badenoch and Strathspey areas.

"This has serious implications for the development effort in the economic heartland of the HIE area. It means that business projects in districts such as the unemployment blackspot of Forres through to the rural villages of Moray, Strathspey and Inverness - from Tomintoul through to Fort Augustus will no longer be eligible for anything other than the most minimal financial assistance - up to £62,000 (pounds). These areas contain some 30 per cent of the population of the Highlands and Islands.

"There is a very strong case for including Inverness and Nairn, and Moray, Badenoch and Strathspey in the map and we will pursue this with our local partners over the coming weeks.

"We do recognise however that the fragile economies of the west coast and the island communities have been included in the revised proposals."

(This statement refers to a news release issued by the Scottish Secretary Dr. John Reid on the 10th of April 2000 concerning the revised proposals for areas in Scotland eligible for Assisted Area status under European Commission rules.)

Further information from: www.scottishsecretary.gov.uk