HIE On Course To Meet Annual Targets

15th November 2006

The Highlands and Islands Enterprise network (HIE) is on budget and in line to meet or exceed most of its annual performance targets, according to its half-year results announced on Tuesday 14 November.

In light of the considerable headway already made in two key areas of its activities, HIE board members have agreed to increase targets for the number of new business start-ups in the region and of assistance given to strengthening community groups.

HIE's first public board meeting, held in Inverness, heard that, at the six month stage, £45.5 million had been invested in a range of initiatives throughout the Highlands and Islands. Alastair Nicolson, the development agency's head of strategic planning and research, told board members this represented 44 per cent of HIE's 2006-07 budget of £103.5 million.

Progress was reported under HIE's four strategic objectives: strengthening communities; growing businesses; developing skills, and global connections.

HIE's commitment to strengthening communities had shown noticeable progress, with 92 local groups assisted - well over half the target figure of 120. As a result directors agreed to raise the figure to 150 to be supported by the end of the financial year.

Strategic projects such as Highland 2007 and the upcoming South Uist buy-out bid, had also benefited from Network support and advice. In addition, applications to the HIE-backed Highlands and Islands Community Energy Company had grown rapidly with more than 100 renewable energy projects under development.

Under its growing businesses remit, HIE had allocated an additional £12 million over three years to ensure the economic challenges facing Caithness following the current decommissioning of Dounreay are addressed strategically. Delivery of the associated action plan will be a key target for the network going forward.

It is working hard to cement plans for national electricity grid connection among island renewable energy projects and to extend the reach of broadband to the remaining 2 per cent of households which currently cannot access it.

The first six months has seen the network assist a thriving number of new business start-ups - 300 so far against a year target of 500, with an encouraging number being from young people and women and in emerging sectors of the economy. Again board members agreed to push the network's ambition by a further 50, setting a new target of 550 by April 2007.

Investment in developing skills initiatives included the £7.18 million Fàs Centre for Creative and Cultural Industries, now under construction at the Gaelic college Sabhal Mor Ostaig on Skye.

HIE is also devoting significant work effort to partnering UHI Millennium Institute on a range of fronts. Following the announcement in early October that UHI is unlikely to achieve full university status in 2007, HIE has agreed to support the institute to address issues causing this delay.

Stimulating the region's global connections, HIE has announced the completion of the first phase of the £22 million Centre for Health Science in Inverness. The first tenants are now in occupation with the second phase due for completion in December 2007 and phase three due to start in early 2008.

Discussions continue over the future of renewable energy manufacturing at the Arnish yard in Stornway following difficulties experienced by one of the yard's current tenants, Camcal Ltd.

Feasibility work progressed on a plan to purchase 20 acres of land from Inverness Airport Business Park to provide prime inward investment opportunities as well as space for locally based companies with high growth potential. The redevelopment of Eden Court Theatre was also reported to be on target.

In a bid to reduce the Moray economy's present dependency on military employment, HIE's Moray 2020 initiative had been investigating the potential to create new economic activity through the healthcare sector in particular. Progress had been made in developing the delivery of telemedicine, general medical training and women's health provision.

Planning permission had been secured for a new office development at Keith while the Nova building (a clean manufacturing facility) on Forres Enterprise Park is now complete and receiving interest from prospective tenants.

While the number of businesses engaging in international business development had been lower than anticipated (53 after six months, against a full-year target of 160) HIE was confident of making up ground in the second half of the year.

The private sector earnings index for Network-assisted jobs - which measures how well paid new jobs are compared with the local area average - was substantially ahead of target at 119 per cent against a target of 109 per cent.

The network is forging ahead with improvements established through its organisational review at the conclusion of the previous financial year, including the further integration of Careers Scotland, the relocation of core staff to new premises at Dingwall and the redistribution of team roles to fit with developing business needs.

HIE chairman William Roe said: "These results reflect the achievements being made across the Highlands and Islands network and indeed its success in working with partner agencies to fuel the growing economic success of this region.

"Examination of our activities at this stage highlights those areas that weneed to target specifically to ensure we secure the outcomes we agreed with the Scottish Executive at the start of the year and serve to strengthen our ambition in areas where we have exceeded our goals."

HIE Web Site www.hie.co.uk/