Highlands and Islands Enterprise (HIE), the agency responsible for economic and community development in the region, has announced its year-end results for 2002 - 2003 ahead of the publication of its annual report, due in October.

There were a record number of new business starts and the number of jobs supported or created with the help of the enterprise network was up by 30% on the previous year.

Highlights of the year include:

* Start-up assistance to a record 714 new businesses, 43% of them led by women.

* 2,466 jobs created or retained with network assistance, 36% of these in priority areas.

* Despite a global slow-down in inward investment, 423 new jobs were created by inward investment projects assisted by the HIE network, 16% in priority areas.

* 327 businesses received assistance to adopt e-business practices, and a further 233 were assisted with the development of e-business solutions to help them trade more effectively in a global market.  Availability of broadband increased to reach 30% of the Highlands and Islands population.

* 171 businesses received assistance with innovative research and development projects.

* 599 businesses took part in workforce development activities. 2,616 people were engaged in modern apprenticeship programmes, extended to include people over the age of 25, with 237 of these completing during the year.  And 855 people achieved vocational qualifications through Skillseekers

* 39 community land buyouts received support from HIE's Community Land Unit, including North Harris Estate and the Pulteneytown family centre in Wick.  The CLU also assisted with the employment of six development officers and supported the creation of 25 community enterprises.  31 communities were assisted with their renewable energy projects by HIE's new Community Energy Unit, established last year.

The network also approved assistance for a number of major projects including a £8.5m investment in the redevelopment of Aviemore, £1.5m investment in the upgrading of Buckie Shipyard, £10m investment in redeveloping the Arnish Yard in Lewis, and £1.6m contribution to the establishment of the European Marine Energy Centre in Orkney.

A further £800,000 support was awarded to the UHI Millennium Institute to progress key priorities under the UHI/HIE joint strategy.

There was further progress in improving the transport infrastructure and services.  The Air Route Development Fund, announced by the Scottish Executive, was topped up to £1.5m with a £300,000 contribution from HIE.  The network's transport policy department also worked with partners on projects including the strategic transport partnership, HITRANS, which finalised its strategy in March, and the Orkney container trans-shipment hub.

And the joint effort by HIE and the Highland Council to have the head office of Scottish Natural Heritage relocated to the Highlands also paid off with the announcement in March that SNH was to relocate to Inverness in 2005, bringing more than 250 high quality jobs.

Announcing the results, HIE chief executive, Sandy Cumming, said it had been a very challenging year for the enterprise network, but welcomed the results.

"A decline in inward investment, skills gaps in the labour market and continued lack of employment opportunities in some areas have presented complex challenges to us and our partners in recent times.  It has also been a very challenging time internally for the HIE network, with our own modernisation and improvements to the way we deliver services to our customers.  Despite these pressures we have seen some impressive results including a record number of new business starts and some significant inward investment projects that have created many new jobs.

"The renewable energy sector is beginning to bear fruit, and we have seen major progress, notably in Lewis and Orkney.  Agreement was finally reached on the long-awaited and very ambitious project to redevelop the centre of Aviemore to turn the area into a world class tourism and business destination, creating more than 200 new jobs.  And of course the UHI Millennium Institute is now well on its way to achieving full university status."

Speaking about what lies ahead, Mr Cumming said the strategic priorities included continuing efforts to improve transport links and the provision of broadband, development of the renewable energy sector, decommissioning of the Dounreay nuclear power plant and continuing public sector jobs dispersal.  "We are seeing a new dawn for the Highlands and Islands in the growing renewable energy sector.  We must work hard to support this and ensure that the region realises its full potential in this area.  It's more than having powerful natural resources in wind and wave.  It's also about having a skilled workforce to meet the needs of companies serving the sector.  And it's about encouraging innovation, research and development, to help ensure that the Highlands and Islands become established as a centre of excellence for renewable and sustainable development.

"We will continue to work along with BT and others to promote and provide broadband, particularly to smaller and more rural communities.  The figure of 30% access for the area is an excellent start but our aim is to raise that to upwards of 95% in the coming years.  We very much welcomed the announcement of SNH's relocation to Inverness in 2005, and we will continue to work with the Highland Council and others to promote the Highlands and Islands as a location for the future dispersal of further public sector jobs."
 
HIE chairman, Dr. Jim Hunter, welcomed the results and said there were many significant challenges ahead.

"The progress made in social and economic development in the Highlands and Islands in recent years has been first rate, and the potential is still huge.  We have seen unemployment drop to record low levels and we have seen some real population growths in many areas.  Our challenges now are to spread the benefits more evenly across the region, tackling priority areas where populations have continued to decline and where the economy remains fragile.  The opportunities for us in the growing renewable energy sector, and with the decommissioning of the Dounreay plant cannot be overstated, and the enterprise network must work alongside its partners to ensure that as a region we capitalise on these opportunities.

"The UHI Millennium Institute will be the single most important factor in securing long-term stability of the economy and population across the Highlands and Islands, the provision of high quality well-paid jobs and the development of skills to meet the needs of future industries such as renewable energy.  Having a university here, with campuses spread across all areas, will play a major role in repopulating fragile areas.  It will bring more young people to the area, many of whom will settle here after completing their education.  UHI should therefore remain a key priority for HIE and it is imperative that, across the Highlands and Islands, we work jointly to deliver the university that's now on offer."