Highlands and Islands Enterprise (HIE) is continuing to support the development of the arts across the region by awarding a funding package worth £288,500 to HI Arts, an independent charitable arts development company.

Funding from HIE for HI Arts consists of an operating fee of £93,500 and almost £200,000 for the organisation to disburse in arts and cultural development on behalf of the Network during the coming year. HIE is increasing its financial support for HI Arts by more than £80,000 in a bid to develop a sector which is now widely recognised as one of the major undervalued resources in the Highlands and Islands. Extra funding has also been received this year from the Scottish Arts Council - HI Arts other main funder.

Robert Livingston, director of HI Arts, welcomed the increase in funding for the organisation. He said: "HI Arts has had a terrific year with one of our most significant developments being our involvement in the preparation of the bid for Inverness to become European Capital of Culture in 2008. The Screen Machine had an excellent third year of full-time operation including a significant hire to Bosnia to entertain British Armed Forces and we are delighted to see the international development of HAIL, the Forum of Highlands and Islands Records Labels.

"Our Visual Arts Marketing project, providing professional marketing advice to 10 galleries in the HIE area, was an enormous success and the publication of a second, fully revised edition of the Visual Arts Guide, detailing over 130 galleries, arts studios, sculpture walks and arts organisations from Argyll to Shetland is being well received.

"One of our major achievements has been to help to lever in £400,000 worth of Lottery funding for arts projects across the region and we hope to achieve similar results in 2002-03. We are looking forward to building on our successes, and with increased funding from HIE and SAC, we aim to deliver a comprehensive programme of Pan-Highlands and Islands arts development."

HI Arts has several priorities for the coming year including projects aimed at enhancing the music industry in the Highlands and Islands. The MIDAS II initiative will train more young promoters, build the professionalism of small independent record labels, and provide business education to young musicians entering the industry. Working from new premises in the Inverness City Centre, HI Arts also hope to deliver new developments in drama and arts marketing.

Sandy Cumming, chief executive at HIE said: "The arts are extremely valuable, both socially and economically, to the Highlands and Islands. Cultural development plays a crucial role in contributing to the quality of life and the fostering of community confidence. The arts, particularly music and drama, are vitally important in the lives of young people and a vibrant arts scene plays an important role in retaining them in the Highlands and Islands and attracting other people to the area, whether to live or just to visit.

"The arts industry in all its forms is a key component in helping us achieve our Strengthening Communities aims and objectives but also those of Developing Skills and Growing Businesses via projects such as music industry training for young people or the development of the creative industries sector."

Jim Tough, head of strategic development at SAC said: "Hi Arts vision of a vibrant Highlands which enjoys an enriching and varied cultural life is a vision shared by the Scottish Arts Council. The diverse projects supported from both Lottery and Scottish Arts Council funds are testament to the range of creativity which finds a home in and around the Highlands."