Highlands and Islands Enterprise (HIE) chief executive Sandy Cumming has welcomed the announcement that £1.5 million of European funding has been secured for a major high-tech project to provide the Northern Isles and the North of Scotland with reliable broadband telecoms.

Deputy Minister for Finance and Public Services Peter Peacock made the announcment at the launch of the £11.5 million project in Shetland today. Over 600 miles of fibre optic cable will be laid to connect Shetland and Orkney to Caithness with fast, reliable computer connections.

The Highlands and Islands Enterprise (HIE) Network has pledged £375,000 towards the total project costs with the majority of funding coming from Scottish and Southern Energy and the Shetland Islands Council's Charitable Trust. Financial assistance is also coming from Shetland Islands Council and Orkney Islands Council.

Commenting on today's announcment, Sandy Cumming said: "For too long the Northern Isles have been disadvantaged with unreliable telecoms links, hampering business and community development. With broadband technology being rolled out across the Highlands and Islands it is vital the Northern Isles and Caithness have a comprehensive broadbands telecoms infrastructure in place in order to take advantage of fast, 'always on' computer links.

"Improved telecoms will help combat the problems of peripherality and insularity experienced by remote communities and businesses. This fibre optic link will allow business in the area to take advantage of the economic opportunities afforded by global markets and research suggests this project will generate over 190 new jobs and £6.6m turnover within 10 years of its completion."