The Argyll and the Islands Local Economic Forum (AILEF) today (Friday 10th June) announced the publication of its development strategy, which sets out a clear and robust framework within which to plan the area's economic development activity.

The strategy, which was launched by chairman of the LEF Professor Peter Timms at the Corran Halls in Oban, aims to create a sustainable and diverse economy resilient to sectoral shocks, with a more equal spread of economic opportunity.

This strategy builds on the Scottish Executive's national enterprise strategy, A Smart, Successful Scotland and reflects the area priorities of the Highlands and Islands Enterprise strategy, A Smart, Successful Highlands and Islands - the refreshed version of which is due to be published next week.

The major challenges for the area include long-term population decline, an ageing population and geographical diversity with 30 per cent of the population living on the area's 27 inhabited islands.

The key economic development issues highlighted in the strategy include:

* Transportation links, which affects accessibility to markets, goods, services and employment opportunities;
* One of the lowest GDPs per worker in Scotland;
* Economic and social exclusion;
* High unemployment in certain areas and more seasonal unemployment;
* Skills shortages and gaps in key areas, such as construction;
* Housing shortages in some areas and escalating house prices;
* Declining population in some areas.

However new economic opportunities have been identified in digital media, the renewable energy sector, marine science, environmental-based activities including the Loch Lomond and the Trossachs National Park and construction due to a substantial programme of planned public and private investment.

The higher than average level of business start-ups is seen as a positive opportunity for widening the economic base of the area, and in tourism the growing interest in short breaks and eco-tourism can be harnessed to extend the season providing more stable employment and income to the sector.

Professor Timms, who is also chairman of Argyll and the Islands Enterprise, said: "Underpinning all of these economic opportunities is the development of good transportation and communications infrastructure, providing fast, frequent access between central and peripheral parts of Argyll and the Islands, and national and international connections.

"Achieving this will finally bring to an end the unnecessary outward migration of the area's people in search of opportunity, and encourage sustainable and economically active inward migration.

"While we need to address the challenges we face, we cannot re-arrange geography. In fact, our rich environment of land, loch and sea is one of our greatest assets, and the basis of much of our livelihood."

Professor Timms highlighted some of the real causes for optimism in the area, including the European Centre for Marine Bio-technology at Dunstaffnage, the roll-out of broadband by the end of this year to our most remote communities, the high level of new business starts, and the regeneration of the economy around Campbeltown.

He added: "Our strategy embraces and builds on critical development projects like these. This strategy is not a few short-term compromises quickly printed up in a glossy brochure. It is a practical guide for carefully designing projects to meet real needs, properly understood by sound analysis. By taking a joint approach, reflecting partners' areas of responsibility and competence and actively promoting and funding the right developments, we will help build a prosperous future for all of us."

Councillor Robin Banks, development and environment spokesman of Argyll and Bute Council said: "It is essential that work to raise the level of earnings and employment opportunities is undertaken and this strategy provides that framework.   When it is implemented, the strategy will lead to enhanced economic prospects for people in the geographically diverse area that is Argyll and the Islands and contribute to it becoming a leading rural area."

Councillor David Munn of North Ayrshire Council said: "This strategy recognises tourism as the largest employer in the area and how all decisions impact on this and the environment that encourages visitors to the area.  It is vital that our unique environment receives wise management and investment.  This requires concerted effort of partners on a number of fronts."