HIE tells us how well it is doing

HIE has issued the following press release....

"Laying foundations for growth in the Highlands and Islands"

Modern industries including life sciences and renewable energy are making strong progress in the Highlands and Islands, according to the region's development agency.

Highlands and Islands Enterprise (HIE) has demonstrated a "highly productive" performance in its 2008/09 end-of-year results which were reviewed by board members this week.

The results set out the agency's achievements on key projects such as UHI, health science, renewable energy, inward investment and community land ownership. They also described HIE's performance in meeting the growth measures set by the Scottish Government, which focus on supporting high growth businesses and strengthening communities.

HIE chair William Roe commented: "These results chart a highly productive year for HIE, especially against the backdrop of the global economic downturn. We remain an ambitious organisation and many of our ongoing projects aim to place the Highlands and Islands in a competitive position in the global marketplace."

Among its principal achievements, HIE contributed significantly to attracting Welcon Towers to Machrihanish to develop a wind tower manufacturing facility, extending the site previously occupied by Vestas. HIE is investing £5.6million as part of a £40million investment.

In the past year, phases II and III of the Centre for Health Science (CfHS) were formally opened in Inverness. A total of 214 full time employees are now based within the Centre. The average salary is now recorded at £33,696 and there are currently 318 research projects being run in or administered from the CfHS.

Proposals for a marine science business park near Oban moved a step forward with outline planning consent being granted and the site for the park subsequently purchased. Construction has begun on a speculative science building at Forres Enterprise Park and HIE is pursuing a number of promising leads for tenants.

Reaching double the target, 60 community groups were supported to invest in renewable energy, including 33 larger scale, income generating projects.

Community Energy Scotland was officially launched in August 2008 with a ceremony held at the Scottish Parliament in October 2008, having taken over the work of Highlands and Islands Community Energy Company (HICEC).  Community Energy Scotland is an independent organisation with headquarters in Dingwall and has recently registered as a new Scottish Charity.

HICEC staff transferred Community Energy Scotland and have been joined by eight new staff to help cover its new Scotland-wide role.


HIE concluded a 12-year lease with Burntisland Fabrications Ltd for the main workshop at Arnish Point on Lewis. The business hopes to create 60-80 FTE jobs in the area within 2009, primarily through its renewable energy orders for offshore wind.

At the European Marine Energy Centre (EMEC) in Orkney, an overall funding package was agreed between partners (HIE, the Carbon Trust, Scottish Government, Scottish Enterprise and Orkney Islands Council) to enable the implementation of a five-year business plan. EMEC is currently carrying out capital works to improve offshore infrastructure, funded by a Scottish Government contribution of £1.45million which is expected to be completed by August 2009.

The Pentland Firth Project has become the leading marine energy regional initiative in Scotland. In September 2008, it was selected by The Crown Estate to be the only area in the UK able to offer commercial seabed leases. The Crown Estate received double the expected number of expressions of interest in the leases from businesses keen to tap into the firth’s immense energy potential.

In Caithness and Sutherland, a BT 'homeshoring' pilot project, enabling contact centre staff to work from home, created 15 new jobs. Morgan Stanley has also announced its intention to establish a data centre in Caithness with the potential to be a significant employer in the area, alongside local IT company, AlchemyPlus's plans to develop a £20million shared service and data centre facility in Inverness.

HIE has been working closely with the South Uist community since their purchase of the island's estate in 2006. A benefits realisation plan was completed for community company Stòras Uibhist in March 2008 and is now being implemented.

Led by HIE, plans for development of a 200-acre site at Beechwood, Inverness, to include a new campus for Inverness College, were significantly progressed this year. A master-planning exercise, undertaken by MAKE Architects and involving all key stakeholders, was concluded as planned in January 2009. The Inverness Campus planning application was submitted to Highland Council on schedule and a Campus Benefits Realisation Plan is now adopted for use.

Fás, the latest addition to Skye's Gaelic College, Sabhal Mòr Ostaig, was opened by the First Minister in April 2008. It provides a state-of-the-art creative media environment, including a full broadcast-standard digital television recording studio, sound recording studio, theatre and post-production facilities.

Progress has been made in Lochaber to remove current constraints on land classification and make available more land for industrial development. It is likely the Local Plan will go to enquiry stage during summer 2009.

Lufthansa begins weekly flights operating from Inverness Airport to Dusseldorf from June to September 2009. The service will provide direct access between the Highlands and Islands and Germany for both leisure and business visitors, linking to Lufthansa's extensive global network.

HIE exceeded seven out of eight primary measure targets agreed with the Scottish Government for 2008/09 with outstanding results in raising the private sector earnings index for jobs it helped create - 75 per cent above target.

High growth businesses showed particularly encouraging out-turns with 158 account managed relationships established and 103 growth plans developed. A further 39 social enterprises now have growth plans out of 73 that HIE currently engages with.

In October 2008, the Scottish Government launched its Economic Recovery Programme to help boost development in Scotland. HIE launched its initial seven point economic recovery plan in December 2008 aimed at complimenting and building upon the nation actions outlined by the Scottish Government. The second phase of the HIE recovery plan has now been developed covering April 2009 to March 2010.

Mr Roe concluded: "We have recently launched our first Gaelic Language Plan, another example of using the unique elements of our region to help us strengthen the economy of the Highlands and Islands over the coming year.

"These results were won through the hard work and determination of staff across HIE. We will continue to realise the Government Economic Strategy and aim to exceed our targets set out for increasing sustainable economic growth in the Highlands and Islands over the coming year."