HIE plans to invest over £220m into local economy

31st May 2009

HIE plans to invest over £220m into local economy over the next three years

Plans to invest more than £220 million over the next three years in economic and community development have been published by Highlands and Islands Enterprise (HIE).

The enterprise agency’s latest operating plan – its first since transferring business advice services to local authorities on 1 April 2009 – details HIE’s contribution to deliver the Scottish Government’s Economic Strategy in the Highlands and Islands.

HIE has committed almost £17 million in 2009-10 to ‘transformational projects’ and is appraising around 20 further projects with a view to selecting those that will make the biggest difference to the region’s economy.

It also aims to establish close ‘account managed’ links this year with a further 150 businesses and 40 social enterprises. In addition, it will work with 18 local communities in fragile areas to develop growth plans.

“Supporting businesses remains a top priority for HIE,” said Chief Executive Sandy Cumming. ”Our focus is on working closely with businesses which have the potential to grow substantially creating well paid jobs and wealth right across the region.”

He added: “HIE will be working closely with businesses and communities to help them adapt and maximise their opportunities within the changing global economic situation. Businesses in the Highlands and Islands are traditionally resourceful and resilient. Through delivering our economic recovery plan HIE will continue to help them combat the challenges they face by supporting the spirit of innovation which exists here.”

From Shetland to Argyll and from the Outer Hebrides to Moray, HIE will focus its activities on three principal areas:

• supporting significant and high growth businesses and sectors;
• creating the infrastructure and conditions to improve regional competitiveness, and
• strengthening communities, especially in fragile areas.

HIE agrees its operating plan on an annual basis with the Scottish Government, using the document to set out the specific actions it proposes in order to deliver the Government’s Economic Strategy in the Highlands and Islands.

Mr Cumming said: “Public sector budgets are not immune to the effects of the economic downturn and the next year will be challenging for HIE. We, too, will be looking at ways to ensure we work smarter – for example by creating ever closer relationships with public, private and third sector partners; working through community planning partnerships to deliver Single Outcome Agreements in each of the Local Authority areas, making more efficient use of facilities like office space, and trying to identify new sources of funding.

“With local authorities now delivering business advice and information through the national Business Gateway service, HIE will concentrate on offering dedicated support to high growth businesses and social enterprises through its account managers.

“At the same time, we will work towards creating stronger, more sustainable communities by leading on a number of key transformational projects. Some of these are already underway, like the opportunities being created for the Kintyre communities as a result of investment in renewable energy manufacturing at Machrihanish and for Stornoway with Arnish. There are also others in the pipeline, all of which are designed to create significant economic and social opportunities for communities and businesses across the region.”

The operating plan specifies the ‘transformational projects’ which HIE is backing to improve the region’s competitiveness. It includes UHI Millennium Institute, the European Marine Energy Centre, Orkney, the Caithness and North Sutherland Action Plan, the Arnish industrial site on Lewis, the Centre for Health Science and Diabetes Institute, Inverness, the proposed development of a campus at Beechwood, Inverness, the Moray 2020 Action Plan, the Mareel centre for creative industries in Shetland, and the Kintyre Action Plan.

HIE is continuing to work with its partners in strengthening communities, focusing principally on social enterprise, helping communities acquire and develop income-generating assets; building community capacity, and stimulating growth in fragile areas which still account for around 13 per cent of the region’s population.

The operating plan also details steps HIE is taking to make greater use of analysis of carbon emissions to shape the decisions made in its operations, focusing on energy efficiency.

Mr Cumming commented: “HIE has a major role to play in implementing the Government Economic Strategy and realising the targets set out for increasing sustainable economic growth in Scotland as a whole.

“The region has many strengths and we must market the opportunities we can offer to retain and to attract high growth businesses and dynamic individuals to strengthen our communities.”

HIE’s operating plan 2009-12 can be viewed and downloaded online at www.hie.co.uk/operating-plan-2009-2012.htm