HIE Network year-end results 2003-2004

Highlands and Islands Enterprise (HIE) is intensifying its efforts to help create well-paid jobs throughout the area.

That commitment was given today, Tuesday 25 May, as HIE chief executive Sandy Cumming announced the organisation's year-end results for 2003-04.

The HIE network surpassed its target of helping create or retain 2,000 full-time equivalent (FTE) jobs by nearly 1,000 in the past financial year.

On average, the jobs created paid four per cent more than the standard private sector wage for the region. HIE had been hoping for a seven per cent uplift, however, and Mr Cumming said the results had helped focus the Network's policies for job creation in the coming year

He said: "I am delighted to be able to announce that against a target of 2,000, the HIE network has helped create or retain 2,944 full-time equivalent jobs throughout the Highlands and Islands in the last financial year. While that is good news for us and the communities we work to support, it is absolutely clear that in continuing to create employment opportunities we need to see wage levels rise.

"We have been reviewing and refining our policies on job creation to ensure higher wages are a clear priority over the next year. That aim is understood throughout the Network and staff in all 10 LECs are committed to delivering it.

"It is also understood that this comes at a time when the Network already has a significantly high level of commitment and demands on our resources are at unprecedented levels."

During the course of  the year HIE invested £102 million in the area, including £81.3 million from the Scottish Executive and £9.7 million from the European Union.

Major areas of involvement in 2003-04, which the Network continues to be heavily committed to in the current year include, the development of the renewable energy sector throughout the area, the decommissioning of Dounreay nuclear power station and the redevelopment of the Arnish yard in Lewis. The continuing expansion of the life science sector through projects such as the planned Inverness Medicentre is another key priority.

The results announced today show a strong performance by the HIE network in 2003-04, with 27 of the 33 core targets set out in the agency's annual operating plan met or exceeded.

Performance was particularly strong in the area of skills, where all targets were met or surpassed. One highly innovative initiative saw football excellence and learning opportunities linked in the Life Skills Through Sport project developed by HIE, Ross and Cromarty Enterprise and Ross County FC. 

A total of  1,687 people gained employment through Modern Apprenticeships. Thousands of school pupils took part in 280 events run by Careers Scotland under the Education for Work and Enterprise programme.

The rate of business start-ups was a continuing success story for HIE in 2003-04, with LECs assisting in the creation of 692 new businesses through the European-funded HIE Starts programme.

In the area of community development, a total of 240 community facility improvement and 185 cultural and arts projects were assisted, while HIE's Community Energy Unit supported 111 projects in its first full year of operation.

The Community Land Unit supported 28 acquisitions throughout Scotland during 2003-04 against a target of 30. Pre-acquisition support has been intensive to communities in the Western Isles considering using the new right-to-buy legislation. Among the acquisitions that went ahead in 2003-04 were land for new crofts on Colonsay, Voe pier in Shetland and a development site in Stockinish, Harris.

The Network made significant progress in developing research centres in areas that will add value to local businesses and sectors. These include the European Marine Energy Centre in Orkney, due to be officially launched later this year, and SAMSardtoe, in Argyll, which was supported to develop a set of new species aquaculture projects.

Thirty seven per cent of households in the HIE area now have access to ADSL broadband. It is predicted a total of 48 per cent will have access by next month (June 2004). More than 18,500 people registered for Broadband following HIE-funded marketing campaigns.

Reflecting national and international trends, inward investment was limited during the year. Successes the network attracted were targeted at fragile areas, where 169 jobs were created. The Network's out-turn on a target of supporting 400 jobs through inward investment was 267.

During the year four generic and specialist supply partner contracts came into operation. The majority of advisory services delivered by the Network are now provided through supply partner arrangements.

The year also saw the arrival of four new air services linking Inverness and the Highlands with regions outside Scotland.

Working with other agencies in the Highlands and Islands, significant progress was made during the year in preparing for the Scottish Year of Highland Culture 2007.

HIE and its partner organisations are continuing to press the case for on-going European Union support for the Highlands and Islands post 2006 to ensure the many benefits that funding has brought to the entire area can be consolidated and built on.

Mr Cumming added: "The past year has been highly challenging to the Network and its partners. There have been some very low points with the loss of major businesses in Lewis, Lochaber and Caithness and continuing difficulties affecting aquaculture and fishing in many parts of our area. However, we can also be justifiably proud of our successes across the wide range of our activities.

"A good example of where our intervention has borne real fruits is South-east Sutherland. This time last year, the prospects for that area seemed fairly bleak. That situation is changing dramatically, with initiatives from local companies and inward investors changing the face of the local economy and building a renewed confidence in the community. The challenge to us as a network is replicating that success in the areas where it is needed most, such as Caithness East and the Western Isles.

"There is much to look forward to in current year, including the opening of Aviemore Highland Resort, the launch of EMEC and the development of Inverness Medicentre as well as a number of other projects. There is also much work to be done to continue attracting inward investment and in-migration, to make the most of the opportunities offered by renewable energy, to ensure the area benefits fully from technology, to see a university established in the Highlands and Islands and to support our most fragile communities."