(Issued by the HIE Network on behalf of the Department of Trade and Industry)

A new partnership for the Highlands and Islands and the north east of England to win business for their regions, especially in the energy sector, was announced by Energy Minister Brian Wilson today.

Facilitated by the DTI, a Memorandum of Understanding (MoU) was signed by the development agencies of the Highlands and Islands and the North East - Highlands and Islands Enterprise (HIE) and One NorthEast respectively.

The MoU is the formal agreement between HIE and One to work closely together to find and create new business opportunities for both regions. The initial agreement  has identified a number of strands where both agencies will collaborate on projects of joint interest, including:

Nuclear decommissioning - huge potential market for companies with offshore expertise to collaborate

Offshore oil and gas development - opportunity for the highly skilled fabrication yard labour force to collaborate on some of the larger projects of the future e.g. MOD’s aircraft carrier programme

Renewable energy - Co-operation between the New and Renewable Energy Centre and Highlands and Islands Enterprise will result in joint support, particularly for marine renewables

Development of the offshore supply chain market - collaboration between the regions will assist engineering businesses to expand their supply chain network

Giving his full endorsement to the joint venture, Energy Minister Brian Wilson said:

Today’s agreement opens up huge potential benefits for both regions. It sets a standard for all development agencies to see how collaboration can benefit businesses and communities in their regions, based on distinctive assets.

These synergies have become particularly apparent in relation to renewable energy. Shared interests in nuclear decommissioning, offshore oil and gas markets and other energy related activities provide an excellent platform for this partnership.

Mr Wilson’s endorsement was re-iterated by the Scottish Executive. Minister for Enterprise, Transport and Lifelong Learning, Iain Gray extended his support saying:

"I welcome the signing of this Memorandum of Understanding between Highlands and Islands Enterprise and One North East. This cross-border working partnership will ensure that diversification of manufacturing and engineering industries can meet the challenges of the 21st Century. The Executive's Smart, Successful Scotland strategy for developing long-term, sustainable economic growth can only be enhanced by measures of this nature."

Sandy Cumming, chief executive of Highlands and Islands Enterprise (HIE), said:

"The history of the economies of the Highlands and Islands of Scotland and the north east of England could hardly be more different, but our two development agencies are pursuing remarkably similar sets of opportunities.

"These are genuinely exciting opportunities which hold out the prospect of many benefits for businesses in our areas.  The existence of a formal agreement between the two agencies will strengthen existing links and has the potential to benefit both economies."

Neil Mundy, Director of Integration, One NorthEast added:

"The region very much welcomes this important collaborative agreement which builds upon the success achieved to date, in relation to renewable, offshore and nuclear decommissioning. Bringing together the North East's businesses, education and research establishments and support organisations offers great opportunities.

"We are very grateful to the Minister for his support in the development of our activities which are of fundamental significance to our region."

Department of Trade and Industry website

One NorthEast website