The Highlands and Islands of Scotland are enjoying an unparalleled period of stable growth and historically low levels of unemployment according to Sandy Cumming, chief executive of the Highlands and Islands Enterprise (HIE) network.

Speaking at today’s (Tuesday 28th August, 2001) launch of HIE's tenth annual report Mr Cumming along with HIE chairman Dr. Jim Hunter highlighted the achievements and challenges faced by the development agency over the past year across its three strategic objectives of strengthening communities, developing skills and growing businesses.

One of the key achievements of the year was the establishment of the Scottish Land Fund which is administered by HIE from Auchtertyre, in Lochalsh. Since February this year 20 applications worth £330,000 have been approved.

HIE's own Community Land Unit have assisted 23 communities to purchase land and property with a total investment of £700,000.

HIE chairman Jim Hunter said: "We welcome community ownership because it enhances the self-confidence of people living in the Highlands and Islands. Every such enhancement is crucial. It is clear that there can be no entrepreneurship, no economic progress of any kind, in the absence of self belief, self-esteem and self-confidence – the kind of qualities which are boosted by land ownership."

Community action grants worth £1.3m were delivered by the HIE network during the year, covering 290 diverse community projects. This levered in a further £8.8m from communities themselves and other sources. Projects assisted included upgrading village halls to improvements in community facilities – from playing fields to sports clubs.

With unemployment at a record low of 3.7 per cent HIE has been faced with the new challenge of how to resolve labour and skills shortages in some areas of the Highlands and Islands.

More than 3,000 people were supported to develop new skills through training initiatives in almost 500 businesses across the region. The proportion of Skillseekers in employment reached a record high of 87 per cent and more than 1,000 people gained vocational qualifications through HIE's training initiatives.

Individual Learning Accounts which aim to ensure everyone has access to learning were nationally launched in September. By March more than 5,500 had been opened in the HIE area.

The downturn of the oil fabrication industry over the last two years saw thousands of job losses throughout the region. This was tackled by HIE and other agencies through the Oil Industry Response Team (OIRT) and during the past 12 months alone they successfully matched 2,656 redundant fabrication workers with job opportunities.

Sandy Cumming said: "The success of the OIRT demonstrates the important role skills development continues to play in our work as do a number of initiatives geared towards helping local people make the most of their abilities to gain meaningful employment."

"For economic, administrative and other reasons, conditions have been challenging for us but despite this we managed to assist local and new businesses to create or retain a further 2,427 jobs and attract eight new inward investors to the area.

"Of particular note was the decision by the Danish wind turbine company, Vestas to establish a plant in the Mull of Kintyre, not only creating 120 skilled jobs in one of the region’s most fragile areas but harnessing a new industry which the Highlands and Islands is well placed to capitalise on in the future."

An additional 210 new businesses were established by HIE’s business Start-up Programme including a new gallery, Raven Press in Skye, a knitwear producer in Shetland and sign maker in Ross and Cromarty.

HIE continued to embrace new technology raising awareness of the potential benefits of e-commerce and, through seminars and workshops, offering expertise and advice throughout the Highlands and Islands.

Dr Jim Hunter said: "There is growing confidence in the Highlands and Islands both within the business community, potential inward investors and people who live and work here. The dispersal of a number of HIE jobs to the soon to be opened data service centre in Benbecula has demonstrated the potential to successfully devolve civil service posts to some of the most fragile areas of the region.

"HIE will continue to work in partnership with community groups, local agencies and the Scottish Executive to help sustain and enhance economic and social prosperity."

Summary of the HIE Network key results in 2000-2001

• The Community Land Unit assisted 23 communities to purchase land or property;

• 290 community projects were supported with an investment of £1.3million drawing in a further £8.8 million of other funding;

• The proportion of Skillseekers in employment rose to 87 per cent;

• More than 1,000 people gained a vocational qualification;

• 2,427 jobs were created or retained at an average cost per job through Finance for Business (FFB) funding of £2,334;

• Eight new inward investors to the region created 737 new jobs, including 153 in remote and fragile areas;

• 210 new businesses were set up by people who were formerly unemployed.

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Copies of the HIE Network's tenth report are available from HIE's communications and media team.
Tel 01463 244245 or e-mail: HIE communications