HIElights April/May 2014

NEW OPERATOR FOR CAIRNGORM

HIE’S 2013-14 RESULTS

ALL ENERGY IN MAY

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lights Building our future across the Highlands and Islands

April/May 2014

Issue No. 12

£3m investment in life sciences build at Inverness Campus. Cabinet Secretary John Swinney with the Partnership Forum. p14

WELCOME / FÀILTE Welcome to HIElights, a regular update on the activities of Highlands and Islands Enterprise (HIE).

HIE is a non-departmental public body of the Scottish Government, with a unique remit which integrates economic and community development. Active across half of Scotland, from Shetland to Argyll and from the Hebrides to Moray, HIE pursues four priorities to achieve sustainable growth: • Supporting businesses and social enterprises to shape and realise their growth aspirations • Strengthening communities and fragile areas • Developing growth sectors, particularly distinctive regional opportunities • Creating the conditions for a competitive and low carbon region HIE has an annual budget of almost £97m and employs around 250 people based in locations around the Highlands and Islands.

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IN THIS ISSUE Harris Distillery Bespoke Tartan Nevis Range Trails Rum Bunkhouse Singapore Mission Enterprise Area Plans

Stay up to date with HIE’s work across the Highlands and Islands at www.hie.co.uk or follow us on Facebook, Twitter and LinkedIn.

www.hie.co.uk

April/May 2014

OUR PRIORITIES

Supporting businesses and social enterprises to shape and realise their growth aspirations A’ toirt taic do ghnìomhachasan is iomairtean sòisealta gus na h-amasan aca a dhealbhachadh agus a’ ruigsinn

INTERNATIONAL TOURISM OPERATOR FOR CAIRNGORM MOUNTAIN HIE has announced international leisure and travel company Natural Retreats as the new operator of Cairngorm Mountain.

Natural Retreats, which is also one of the partners involved in the transformation at John O’Groats, is renowned for offering customers high quality tourism experiences in some of the most dramatic natural locations around the world.

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The 25 year lease starting in June will see the ownership of current operator CairnGorm Mountain Ltd transfer from HIE to Natural Retreats. The business has outlined an ambitious £6.2m five-year investment plan which includes a loan from HIE to develop a new Day Lodge.

Alex Paterson, HIE’s Chief Executive, commented: “Natural Retreats has the vision,

(L to R) HIE’s Alex Paterson and Natural Retreats’ Ewan Kearney, Chief Operating Officer, at Cairngorm Mountain

ambition and experience to enable the resort to fulfil its potential as a world-class visitor destination. Their plans include the further development of snowsports and diversification of the business into a high quality, year-round attraction. Natural Retreats’ ambition to attract new visitors to Cairngorm will produce spin-off opportunities for other local businesses in the tourism sector, especially in Strathspey.”

FIRST WHISKY DISTILLERY FOR ISLE OF HARRIS Work has begun on the first whisky distillery to be built on the Isle of Harris – with 20 local jobs set to be created.

As only the second whisky distillery in the Outer Hebrides, the venture will open up a new whisky region for Scotland.

A new single malt to be called The Hearach, the Gaelic for an island inhabitant, will be distilled, matured and bottled at the distillery in Tarbert.

Isle of Harris Distillers has raised £10 million from a number of public and private investors and contractors have started work The project has been awarded £900,000 from

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HIE. Rachel Mackenzie, HIE’s Area Manager for the Outer Hebrides, said: “Whisky is an iconic Scottish product which is loved around the world and has growing international sales. The development has huge potential for the Island, its economy and its people. In time, Harris whisky will develop a worldwide reputation for quality in the same way as Harris Tweed has.” www.hie.co.uk

April/May 2014

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GLOBAL BUSINESS INVESTS IN MANUFACTURING Hydrasun, a leading specialist supplier to the global energy market, is looking to expand its operations with a £3m investment in its specialist manufacturing facility in Aviemore.

This is also being supported by a £500,000 development grant from HIE.

(L to R) Andy Burton EFC, Steven Hutcheon HIE, Energy Minister Fergus Ewing, Bob Will CEO EFC Group and David Oxley HIE.

PERFECT GROWTH CLIMATE AT ENTERPRISE PARK FORRES Global oil and gas business EFC Group which created a base at the Enterprise Park Forres just two years ago has expanded its Moray operation for the third time.

Minister for Energy, Enterprise and Tourism Fergus Ewing MSP, toured the business’s custom built base at the start of March.

The company which has headquarters in Aberdeen and also a manufacturing base in Houston, Texas specialises in design and manufacture of instrumentation, monitoring, handling and control systems.

After opening in Forres in summer 2012, the business developed a new manufacturing facility last year. This third ambitious phase

is a brand new office and a manufacturing unit, built by HIE, which it has named EFC House. The company has already recruited 22 people and is expected to grow this to 50 in the coming months.

David Oxley, HIE Area Manager in Moray, said: “EFC is an excellent example of a company which is thriving thanks to investment in research and development, innovative recruitment and developing its people.

“EFC Group has been able to find the right employees and a location where the facilities and working environment match the ambitions of the business. HIE is delighted to have supported their growth in Moray.”

Headquartered in Aberdeen, Hydrasun has further operational interests across the globe.

Traditionally known for providing hoses and fittings, the business has expanded to provide customers with a suite of integrated solutions that meet all their fluid transfer, power and control requirements.

The expansion of Hydrasun’s Manufacturing Division, which is due for overall completion by September 2014, is to increase the business’s capacity to meet increased demand.

The investment in Aviemore will fund upgrades to its existing 1,400m2 facility and also allow for the purchase of new specialist manufacturing equipment, creating 20 skilled new jobs. In addition to the investment from HIE, Hydrasun has also received training support from Skills Development Scotland (SDS).

Bob McAlpine, Hydrasun Chief Operating Officer, commented: “The investment in Hydrasun’s Aviemore facility positions us well to meet the demands of the subsea market and realise major growth opportunities. The expansion will increase our manufacturing capacity and technical capability to offer bespoke innovative solutions to our customers.”

NEW HEIGHTS OF ADVENTURE IN KINLOCHLEVEN Scotland’s first ever Via Ferrata, a unique outdoor climbing experience, opened in March at Kinlochleven.

The Via Ferrata, which is Latin for iron way, consists of 500 metres of metal staples and cable bridges around a bedrock at Scotland’s third biggest waterfall, The Grey Mare’s Tail.

(L to R) Ben Starkie of Via Ferrata Scotland and HIE’s Ian Philp

Designed as an all year round adventure activity, Via Ferrata Scotland is using the latest technical climbing equipment and caters for

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people with a wide range of climbing abilities.

The venture has been supported by HIE with a grant of £38,000.

Ian Philp, Development Manager at HIE, said: “The Via Ferrata is the first of its kind in Scotland and complements the existing tourism activity in Lochaber. It will attract additional visitors to the area, as well as creating economic benefits for other local businesses close by.” www.hie.co.uk

April/May 2014

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(L-R) Roy Kirk, HIE, Derek Campbell, ABSL Power Solutions, Charlotte Wright, HIE and Alex Paterson, HIE Chief Executive.

NEW INVESTMENT POWERS CAITHNESS BATTERY FIRMS HIE Chief Executive Alex Paterson and Charlotte Wright, Director of Business and Sector Development joined Area Manager, Roy Kirk on a visit to a Thurso factory where two battery manufacturing firms are powering ahead under new ownership.

HIE supported a smooth change-over for new investors at AGM Batteries and ABSL Power Solutions, which were previously owned by US-based multinational Enersys Inc.

Denchi House, the HIE custom-built battery factory on Thurso’s business park on the outskirts of the town, is home to the two companies, which together employ around 35 staff.

(L-R) Gordon Johnson, Director QA Fish Ltd, David Priest, HIE Development Manager, and Robert Williamson, Director QA Fish Ltd.

SHELLFISH POPULARITY SPEARHEADS EXPANSION A successful Shetland fish processing company and wholesaler is expanding and creating jobs with the development of a new processing unit.

Scalloway based QA Fish Ltd has developed

the unit which has allowed the company to diversify into crab processing.

Supported by up to £16,000 from HIE, the new facility will allow the company to expand and catch opportunities from growing popularity of

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crab in UK supermarkets. The facility could enable an increase in turnover of over £1.5m per annum and create nine new permanent jobs in the Scalloway area.

www.hie.co.uk

April/May 2014

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BESPOKE TARTAN FOR BUTE MANUFACTURERS An internationally recognised fabric designer and manufacturer based on a Scottish island is celebrating landmark orders for its new custom designed tartan range.

Rothesay’s Bute Fabrics has accepted orders totalling over £100,000 for its 100% wool tartan, individually designed and woven at its mill on the island.

Demand for fabric is now so high that the company has invested in a new loom which will expand the design options and double capacity for tucked-edge tartan.

The business’s ambitious plans to develop new products and markets were supported by a HIE loan of £200,000 last year.

WEST HIGHLAND FIRM’S FOCUS ON INNOVATION HIE is supporting small Gairloch based firm Imhanz to help develop new image enhancing technology.

PLAIN SAILING FUTURE The business has secured £115,000 from HIE FOR FISHING INDUSTRY for research and development to target the image processing markets in industries such as fish farming, medicine and oil and gas.

With over 20 years of experience in camera technology innovation, the Imhanz team will focus on developing technology to enhance and process digital images, both to improve the quality of those images and to broaden the scope of their use.

Raine Maclennan from HIE said: “Our backing will support the business to grow to the next level. We are also on hand with ongoing specialist advice to help the company bring their ideas to market around the world.”

Stuart Balfour of Sail Line Fish Ltd

A new sailing mast system is being designed in Shetland which could revolutionise the fishing industry.

and we’re really pleased that this support from HIE will enable us to take it from a proof of concept through to an investable proposition.

Innovative Sail Line Fish Ltd, based at Sullom, is one step closer to developing a new collapsible sailing mast system for small commercial fishing and leisure craft, with R&D support from HIE. The ‘Balpha Mast’ will reduce running costs and reliance on oil allowing vessels to benefit from wind power.

“This design work is progressing well, with involvement from Naval Architects Dick Koopmans in the Netherlands and Eric Sponberg based in the USA. This international collaboration also includes local Engineer Alan Jamieson and Ocean Kinetics Ltd. We’ve had a significant amount of market interest from across the world including Malaysia, Dubai, Maldives and Nova Scotia in addition to fishermen and sailors nearer to home.”

Stuart Balfour from Sail Line Fish Ltd, said: “We have been working on the development of the Balpha Mast for a number of years now

HIE SUPPORTS SOCIAL ENTERPRISE GROWTH HIE is investing £200,000 in a national initiative which will provide business support to social enterprises in the region.

A new two year contract funded by the Scottish Government and HIE has been awarded to the Just Enterprise consortium for work starting in May 2014.

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Just Enterprise will deliver a programme of dedicated training and skills initiatives for the region’s social enterprises to support business development and growth. www.hie.co.uk

April/May 2014

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CYCLISTS ENCOURAGED TO SADDLE UP AT NEVIS RANGE

BUILDING BENEFITS OF ISLAND BRAND A one day workshop entitled ‘Grow your business with the Harris Tweed brand’ was held in Stornoway’s Town Hall in March.

The workshop was delivered by Janice Kirkpatrick, Director of Graven Images in Glasgow for local artisan and crafts people.

The interactive workshop gave the creative industries entrepreneurs an opportunity to consider how the Harris Tweed brand could help them grow their own brands and businesses.

Fifty mountain bike riders took part in mass descents of two new cross country mountain bike runs at Nevis Range Trail Centre located near Fort William.

Designed for beginners and intermediate cyclists the trails are part of a larger £229,363 project, funded by sportscotland, HIE, Nevis Range and West Highland Wheelers, to enhance the biking opportunities at Nevis Range for young people at all levels.

Both tracks are descents, accessed initially by forest road, and will have mini features to encourage the skills of budding downhillers

while still remaining in keeping with cross country trail standards.

HIE has supported the business by investing over £40,000 into the project. Elaine Jones, HIE development manager, commented: “Nevis Range has worked hard to expand the range of facilities at the centre, both for skiing and mountain biking. This range provides a great opportunity to attract the widest possible groups of people, including getting families and children involved. We are delighted to support this ambitious local business as it drives forward exciting activities for visitors into the future.”

The event which was funded by HIE, Comhairle nan Eilean Siar, European Social Fund and the Harris Tweed Industry.

CAITHNESS FIRM ORDER IS OUT OF THIS WORLD KP Technology Ltd, based in Wick, has received an order from NASA (National Aeronautics and Space Administration) for its Kelvin Probe system.

The Kelvin Probe, named after Lord Kelvin, is a measurement device used to characterise the surface electrical properties of materials.

It is one of the most sensitive surface analysis techniques available.

The company’s Scanning Kelvin Probe (SKP) portfolio spans a complete range of specialised functions and was developed

by Professor Iain Baikie. Professor Baikie founded KP Technology 14 years ago and now employs 13 staff in Wick. Products are selling well in the United States and Europe, with increasing orders from the Far East.

HIE has supported the business for many years. The agency has provided expert advice on capitalising on research and development, on creating new international connections, on marketing and through the ScotGrads initiative a number of scientific graduates have worked with the business.

DOING BUSINESS IN CHINA Fifteen companies interested in doing business in China attended a Smart Exporter market awareness event at Eden Court, Inverness, in March.

by SDI in Beijing to enter/expand in the market.

The event provided the opportunity to access free export advice and one to one sessions with experts from Scottish Development International (SDI), the China Britain Business Council and European patent and trade mark attorneys Murgitroyd & Co.

Laura Robertson, Development Manager at HIE, said: “China offers huge opportunities for Highlands and Islands companies in sectors such as food and drink, renewable energy and financial services to name but a few. It’s a fast growing and exciting market but it does come with its own specific challenges so we hope this event will help companies know what to expect and how to approach it.”

It covered all sectors and businesses attending included companies from food and drink, creative industries, life sciences and education. Following the initial session a number of companies are now being assisted

Smart Exporter is an international trade programme delivered in the Highlands and Islands by HIE in partnership with SDI and with funding from the European Regional Development Fund.

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www.hie.co.uk

April/May 2014

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OUR PRIORITIES Strengthening communities and fragile areas A’ neartachadh choimhearsnachdan agus sgìrean dùbhlanach

TOWARDS ONE MILLION ACRES HIE is supporting a series of seminars aimed at raising awareness of the benefits of community land ownership.

The ‘Towards One Million Acres’ events are being delivered by Community Land Scotland, HIE and The Highland Council.

The first two of these seminars were held in Mallaig and Portree in March. Future seminars are likely to be held in Fort William, Aviemore, Inverness, Ullapool, Helmsdale and Durness.

The title of the series refers to the announcement made by First Minister Alex Salmond at the Community Land Scotland conference in June, when he set a target of one million acres to be in community ownership by 2020.

TOURISM EVENT IN MORAY IS PIPING HOT An international piping event which attracted over 17,000 people to Forres in 2013 is set to return in June this year.

Piping Hot Forres 2014 will be held at Grant Park on Saturday 28 June.

(L-R) John Logan, Angus Annan, Logie Community Council, Tom Cox and Brian Paget from the local community.

COMMUNITY TO GET ONLINE BOOST A rural community in a Stirlingshire conservation village which was struggling to get decent broadband speeds is celebrating the introduction of faster services thanks to a research project.

As part of the 3-5 year research project, the University of Stirling is initially providing a link to the University, to provide the backhaul for the wireless service, which in turn could reach up to 100 local businesses and homes.

The Logie Fast Broadband Project has been led by local volunteers, and supported by Community Broadband Scotland (CBS), the Forth Valley and Lomond LEADER Programme and the University of Stirling.

The first premises are already connected and more are set to follow in the coming months.

CBS is a £6m initiative being delivered across Scotland by HIE to provide broadband advice and funding to the hardest to reach communities.

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The event will showcase the 2014 European Pipe Band Championships involving thousands of pipers and drummers from bands far and wide. There will be high quality piping, highland dancing and a wide variety of additional entertainment including local craft and other trade stalls.

The Championships are run by the Royal Scottish Pipe Band Association, with the event being organised and hosted by Forres Events Ltd. HIE awarded £35,000 towards costs of the 2013, 2014 and 2015 events, as well as providing much needed space on the day at The Enterprise Park for the popular ‘park and ride’ facility.

www.hie.co.uk

April/May 2014

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STUDENTS AND INVESTMENT FOR MILLPORT FIELD STUDIES CENTRE The future of the new Field Studies Council Centre at Millport is looking bright, with the arrival of the first students coinciding with news of a £1m funding package from HIE. In October 2013, the University of London withdrew from the site formerly called the Marine Biological Station, based on the isle

of Cumbrae in Ayrshire. With assistance from North Ayrshire Council, the Scottish Government and HIE, the Field Studies Council (FSC) has reopened the facility, now known as FSC Millport.

The centre plays a key role in both the local economy and environmental science teaching.

HIE has confirmed £1m funding which will be used in the refurbishment of the accommodation block and site services. North Ayrshire Council has already awarded £1.5m towards the £3m redevelopment with the remaining £500,000 awarded by the Scottish Government.

MORAY CELEBRATES ROLE OF SOCIAL ENTERPRISE Around 140 people gathered in Elgin in March for Third Sector Interface Moray’s (tsiMORAY) ‘Join the Dots’ event – to celebrate the vital role of the third sector, social enterprise and partnership working in Moray.

A new three year Social Enterprise Strategy for Moray has been developed by tsiMORAY with HIE, and endorsed by community planning partners.

(L-R) Fabio Villani, Chief Officer tsiMoray and Fiona Robb, HIE

HIE Area Manager, David Oxley, commented: “We have a thriving and ambitious third

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sector in Moray which is already making a real difference in the lives of many people in the Moray community. The strategy sets out a partnership approach to support the sector and HIE and tsiMORAY will continue to work with the various groups which are keen to be part of developing the action plan.”

The winners of the Moray Social Enterprise Network (MSEN) Awards are Elgin Youth Development, Bike Revolution, Earthtime, Community Food Moray, Messed Project and Transition Town Forres. www.hie.co.uk

April/May 2014

HELMSDALE COMMUNITY CREATING GROWTH FROM OLD AND NEW Construction work started in March on an innovative social housing project in the village of Helmsdale.

Helmsdale and District Development Trust (HDDT) is leading on the initiative which will see four rented homes created and fully owned by the community in the first affordable housing project for the village in 35 years.

HIE awarded £89,350 specifically towards the housing project, but also lends further support to the Trust, including funding the Local Development Officer post, through its Strengthening Communities team.

Another community group – the Helmsdale Station Community Interest Company (HSCIC) – has refurbished the village’s derelict railway station, also with HIE support.

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Rob Gibson MSP (centre front), Ruth Whittaker, Helmsdale and District Development Trust and Peter Guthrie, HIE, with school children from the community.

After being boarded up and largely abandoned for 20 years, its restoration means that the station waiting room has been brought back into use. Its new facilities include a small display covering the history of the building and promotion of local amenities. In addition the old stationmaster’s accommodation has been refurbished for self catering guests.

TIREE COMMUNITY OWNERSHIP OF BUSINESS CENTRE Membership community enterprise, Tiree Community Business (TCB), has finalised the purchase of The Island Centre, Crossapol, known locally as the Business Centre.

Kit arrives on Rum for the new bunkhouse

NEW BUNKHOUSE FOR RUM VISITORS Work has started on the construction of a new community-owned bunkhouse to attract new visitors to a Scottish island known for its stunning scenery and herds of Red Deer.

The Isle of Rum Community Trust (IRCT) is developing the 20-bed facility to provide much needed accommodation and to secure a new income for the community.

The £874,000 bunkhouse will be owned and managed by the Trust. The project will create two new jobs while also increasing turnover.

It is being supported by a £219,436 grant from HIE, with additional funding from the community itself and the Big Lottery’s Growing Community Assets fund.

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The property was previously owned by HIE and the agency has supported the group to take over ownership and management of the building. Additional funding for the purchase was received through the Tiree Windfall Fund.

TCB is itself based in the centre, alongside current tenants including Tiree Community Development Trust, the Scottish Government, Argyll and Bute Council and Argyll College.

TCB already has plans to build community benefits from its new asset, including introducing car park improvements, adding laundry, toilet and shower facilities for visitors and the addition of a children’s play area.

www.hie.co.uk

April/May 2014

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APPOINTMENTS TO HIE BOARD ANNOUNCED The Cabinet Secretary for Finance, Employment and Sustainable Growth John Swinney has appointed four new members to the Board of HIE. The appointments will run for three years from April 1, 2014.

PADDY CRERAR’S primary role is Chief Executive of the Crerar Hotel Group. He has board level experience of community enterprise and co-operative companies in the Hebrides and is an independent strategy consultant. He also owns and operates two agricultural enterprises. He is passionate about developing opportunities and ambitions within Scotland, particularly the Highlands and Islands.

He was born and raised in Oban and retains strong family, business and personal ties throughout the Highlands and Islands. Outside of business, Paddy is Chairman of Hospitality Industry Trust Scotland and Crerar Hotels Trust charities. He said: “The Highlands and Islands of Scotland are blossoming in terms of economic and population growth. It’s an exciting time and the ambition HIE has laid out to ensure that growth continues is substantial.

My experience is principally from a tourism background and I wanted to be in a position to help deliver the good plans for this sector that HIE has laid out.”

ALISTAIR DODDS is originally from Kelso and moved to the Highlands in 1991.

He has an Economics degree from Edinburgh University, a post graduate Diploma in Personnel M a n a g e m e n t from Strathclyde University and an MBA (Distinction) from Dundee University.

He held senior management positions in the Highland Council over 18 years and was Chief Executive for over six years until August 2013.

He has been directly involved in significant public sector reform, and delivered the benefits from strong and effective partnership working with the public, private and third sectors. He is a Trustee of the Elsie Normington Foundation and a former Company Secretary to Eden Court Theatre in Inverness.

Alistair said: “Having lived and worked in the Highlands for over 22 years I was very aware of the positive influence which organisations such as HIE and the Highlands and Islands local authorities, can have on the area. I was therefore keen to continue my involvement in the development of the Highlands and Islands economy and its communities, working alongside a very strong staff team and as part of a very effective Board.”

GILES HAMILTON has amassed 20 years’ experience in the public, private and voluntary sectors. This has seen him work in the UK, US, Asia, Middle East and Australia, working with leading UK and overseas investors and facilitating inward investment to British companies. He has a thorough understanding of overseas market access as well as growth experience for emerging companies.

His experience of economic development issues within the HIE region includes work with leading Forres-based medical devices company, AccuNostics.

Giles commented: “It’s a bit like the old advert when Victor Kiam said, ‘I liked the shaver so much I bought the company’. As a businessman, I was terrifically impressed with the people I met at HIE and with the way they understood and supported my ambitions. So when the opportunity came up to apply for Board membership, I thought, ‘I want to be part of this organisation’. It was as fast, and as simple, as that.”

P R O F E S S O R DONALD MACRAE OBE was born and educated in the Highlands. He is currently Chief Economist, Lloyds Banking Group Scotland and is a former Director of TSB Bank plc, Scottish Homes and Scottish

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Enterprise. Donald was a member of the committee of inquiry on crofting, a member of the Rural Development Council and the Land Reform Review Group and is currently an independent member of the Skills Committee between the Scottish Funding Council and Skills Development Scotland. He is a fellow of the Royal Society of Edinburgh; a Member of Court at the University of the Highlands and Islands; and a Member of the David Hume Institute. He was awarded an OBE in 2011 for services to Business and Rural Development.

Donald commented: “I’m passionate about Scotland’s economic development, particularly in my home region. I also think there has never been a more exciting time to be involved in the Highlands and Islands economy. The digital transformation which is now under way will be the equivalent to the hydro projects of 50 years ago. There has been remarkable progress since I was growing up on the Black Isle, not least the availability of higher education, improvements in roads and transport, and a much broader range of career opportunities.”

In addition, BELINDA OLDFIELD, who is the General Manager of Revenue and Risk at Scottish Water, is joining the HIE Board as a shadow member observing activity for the next year. She is one of the first to take advantage of a new Scottish Government drive to encourage interest amongst successful women in Scotland to take up places on company and public boards.

Belinda is a Chartered Civil Engineer with a Masters Degree in Business Administration.

She was part of the merger team who created Scottish Water. Her background is in asset management and infrastructure investment delivery.

For more information visit www.hie.co.uk/ about-hie/who-we-are/board-members/

www.hie.co.uk

April/May 2014

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HIE PERFORMANCE DELIVERS JOBS AND GROWTH IN 2013-14 Ambitious businesses and social enterprises in the Highlands and Islands are showing increased confidence and positive performance, according to figures compiled by HIE.

HIGHLIGHTED WORK IN 2013/14

HIE’s board members and senior leadership team

The development agency’s year-end results show that it enjoyed another successful year in 2013-14, supporting more than 2,000 jobs and meeting or exceeding each of the performance measures it agrees annually with the Scottish Government.

HIE has also launched its three year operating plan for 2014-17. Entitled ‘Building our Future’, the plan outlines the agency’s focus and invites businesses, communities and organisations across the region to work with HIE to create growth.

is underpinned by account management, has achieved excellent results, not least by supporting community ownership of assets and encouraging the growth of social enterprises to improve the resilience of some of our most fragile areas.

“There are good signs that we can sustain that performance in future years too. Our latest business panel survey shows high levels of confidence and optimism, with 91% saying they anticipate further growth. That’s up from around 74% just 18 months ago.”

In the past year, HIE’s grant-in-aid support of £30m to account-managed businesses and social enterprises helped deliver a total investment of £120m.

HIE’s investment of £7m to boost exporting expected to generate an increase in turnover of £29m over three years.

HIE input of £3m to account managed businesses in fragile areas supported the delivery of 24 projects which are expected to generate an increase in turnover of £11m.

“The figures show a very strong performance

by HIE and our clients in 2013/14,” said Mr Paterson.

“At the same time, our commitment to community development, much of which also

HIE is also managing Community Broadband Scotland across the whole country, helping kick-start communityled broadband projects in the hardestto-reach rural areas.

Turnover generated in the social economy was forecast at £3.67m after three years. £2.65m of this total will be delivered through assets owned by communities.

HIE Chief Executive Alex Paterson said much of the progress achieved had been driven by HIE’s support for local firms.

“Every year is different for HIE, and what really stood out for 2013/14 was the part played by local, home grown businesses in every part of the region.

“Over the past few years, we have put a lot of energy into account management – developing close relationships with companies of all sizes that have strong growth potential.

That approach paid particular dividends last year, with local firms really helping to drive growth across the Highlands and Islands.

Around 10,000 homes and premises can now access superfast broadband services as a result of the £146m Highlands and Islands project being led by HIE. The highly complex fibre rollout will bring high-speed broadband to 84% of premises in the region by the end of 2016 – four times the number which would have benefited without public sector support.

HIE’s new operating plan, available at www. hie.co.uk/operatingplan shows that, in the coming year, the development agency plans to make a cash investment of £74m in projects and programmes delivering sustainable economic growth.

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HIE continued its programme of providing strategic infrastructure to support business development across the region. Major projects include Inverness Campus, Enterprise Park Forres, the European Marine Science Park at Dunstaffnage, and Arnish on Lewis.

www.hie.co.uk

April/May 2014

OUR PRIORITIES

Developing growth sectors, particularly distinctive regional opportunities A’ leasachadh roinnean fàis, gu h-àraidh cothroman sònraichte na sgìre

MORAY CHAMBER TAKES ON TOURISM ROLE Moray Chamber of Commerce is to lead on the area’s ambitious tourism strategy on behalf of the Moray Economic Partnership (MEP).

MEP members, HIE and Moray Council, have contributed £160,000 and £60,000 respectively for a three year contract to support tourism. The project will develop

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Moray’s assets, co-ordinate events, liaise with local groups and work with stakeholders. The Chamber has employed a full-time Tourism Manager working to promote Moray Speyside as a brand.

Bow Fiddle Rock at Portknockie on the Banffshire coast

attract tourism in areas such as conferences and educational courses which bring business all year round. It also aims to increase the size and skill levels of the tourism-related workforce.

The strategy aims to double the size of accommodation availability by 2025 and

MUSIC NETWORK HITS THE RIGHT MARKETING NOTES An independent Highland music label, working with HIE’s music trade network and Scottish Development International (SDI), is celebrating significant US media exposure for one of its artists.

Ullapool based Middle of Nowhere Recordings

secured prime exposure on American TV channel CBS’s talkshow, The Late Late Show with Craig Ferguson for Roddy Hart & the Lonesome Fire.

On the back of the appearance the artist then featured at international industry conference

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and showcase MUSEXPO 2014 in Los Angeles. Synchronisation deals secured as a result of MUSEXPO can run into the thousands of USD and associated TV and social media exposure worth millions to a band.

See the first performance on youtube. www.hie.co.uk

April/May 2014

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HIE BRINGS ENERGY TO INTERNATIONAL EVENT

JOBS BOOST FORECAST FROM OFFSHORE WIND

FOOD AND DRINK COMPANIES ON MISSION TO SINGAPORE

The Highlands and Islands energy sector is set to take centre stage at All Energy 2014 in Aberdeen on the 21st and 22nd of May.

Following the announcement by Energy Minister, Fergus Ewing, of the formal consent of two offshore wind farm applications in the outer Moray Firth in March, HIE is working with the region’s businesses to maximise local benefits.

Highlands and Islands businesses were at the forefront of showcasing Scottish food and drink in Singapore in April at two international events.

Over 70 companies from the region will come together under HIE’s ‘HI-Energy’ brand to showcase the area’s world-leading renewable energy expertise and supply chain capabilities.

Again the HI-Energy Pavilion will have the largest regional presence at All Energy, with exhibitors attending from across the Highlands and Islands including pavilions from Orkney and Argyll.

The annual event provides a fantastic opportunity for companies to reach a global audience all under one roof. In previous years participating companies have indicated significant business being done and repeat attendance is testament to the success of the HI-Energy pavilion.

All Energy is one of the most important profileraising events in the year for HIE’s energy team and area colleagues, with team members presenting and chairing industry sessions, and taking every opportunity to present the distinct competitive advantage of the Highland and Islands.

Moray Offshore Renewables Limited (MORL) and the Beatrice Offshore Windfarm Limited (BOWL), together will be the world’s third largest offshore wind farm, with up to 326 wind turbines.

The developments, sited off the Caithness coast, will be capable of generating enough power for more than a million homes, and will be worth up to £2.5 billion to the Scottish economy.

Calum Davidson, HIE’s Director of Energy and Low Carbon, commented: “The offshore planning consents provide the green light to billions of pounds worth of investment in planning, construction and installation services needed to deliver these projects.

Our ports and harbours across the region are primed to provide the skills and the strengths required and to unlock hundreds of millions of pounds of new opportunities locally.”

Eight companies from the region were part of an 18 strong Scottish delegation participating in a trade mission in a bid to crack one of the world’s wealthiest economies.

The Highlands and Islands companies attending included: Highland Bay Seafoods; Highland Smoked Salmon; J Lawries & Sons Smokehouse; Loch Ness Brewery; Mey Selections; Nevis Bakery; Scrabster Seafoods and Speyside Craft Brewery.

The Scottish party exhibited at Food and Hotel Asia – the region’s leading event which attracts more than 40,000 delegates from the industry.

The visit followed March’s World Gourmet Summit in Singapore where Scotland was the official seafood partner. A vast selection of produce from Scrabster based JPL Shellfish and Loch Fyne Oysters was used by leading hotels and restaurants during the two week event.

Yachts moored off the Island of Bute, Argyll

FUNDING SUCCESS FOR TOURISM CO-OPERATIVE An innovative private sector-led tourism co-operative covering Argyll and the Isles has received a three year funding package from HIE.

AITC chair Connie Lovel said the vote of confidence from two of the region’s biggest organisations provided a ‘fantastic platform’ from which to move forward.

The Argyll and the Isles Tourism Co-operative (AITC) has secured £150,000 and the news came just a few weeks after AITC was awarded a similar sum by Argyll and Bute Council towards core costs.

She commented: “A key aspect of our work involves supporting the various local marketing associations throughout Argyll and the Isles as they seek to increase visitor numbers and the impact of tourism on their own local areas.

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“The HIE funding will be targeted towards increasing that support. We want to strengthen these local groups as entities in their own right and also ensure they have a louder voice – both individually and collectively – in terms of the future direction of tourism development in this region.”

www.hie.co.uk

April/May 2014

OUR PRIORITIES

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Creating the conditions for a competitive and low carbon region A’ cruthachadh àrainneachd airson sgìre le comas farpais is nas lugha de charbon

2014 CHANGES GRADUATE KERRY’S WORK LIFE NEW LIFE SCIENCE BUILDING Finance Secretary John Swinney has been at Inverness Campus to review progress and to announce work is to begin on a £3m building which will provide space for new Life Sciences business growth.

The HIE Board approved funding for the new unit at its April meeting. The project

includes funding of £835,760 through the European Regional Development Fund (ERDF).

With planning already in place, work on the 1000m2 facility could start before the summer and be ready in late spring 2015. Up to 40 jobs could be accommodated there.

PARTNERSHIP TO MANAGE ‘MUST SEE’ DESTINATION 22-year-old Kerry Macleod from Inverness, who works with HIE, has been chosen from 900 applicants to take part in a Commonwealth youth leadership programme in Glasgow in July.

With fewer than 100 days to go until the XX Commonwealth Games, one hundred young people from around the Commonwealth were offered a place on “33Fifty: The Commonwealth Youth Leadership Programme”.

The programme is being delivered by the Royal Commonwealth Society and Common Purpose, the international leadership development organisation, bringing 18-25 year olds together from 41 Commonwealth countries to learn how to make a difference to their communities.

Kerry applied for the programme after she graduated from Aberdeen University last year and in the meantime she also secured a 15 month post with HIE through its graduate placement scheme – working on the 2014 events team.

“I can’t believe how much my life has been affected by 2014. Not only am I carrying out a job with HIE supporting businesses and communities to take advantage of this special year for Scotland, I have also been chosen for this amazing opportunity,” she said.

Public agencies are coming together to make the most of one of Scotland’s most visited locations.

Cairngorm Mountain and Glenmore Forest Park, together with neighbouring Rothiemurchus, attract 1.4 million visits annually.

Now five organisations have announced a new partnership to develop a co-ordinated management plan for the publicly owned land at Cairngorm Mountain & Estate and Glenmore Forest Park.

HIE, the Forestry Commission Scotland (FCS), the Cairngorms National Park Authority (CNPA), Scottish Natural Heritage (SNH) and The Highland Council will work with private sector businesses and local communities to map out the future for this important place.

The new masterplan will set out plans to deliver a world-class visitor experience, protect and enhance the outstanding nature and landscape and boost the tourism economy.

YOUNG PEOPLE EXPLORE IT FUTURE Around 40 young people from Highland secondary schools attended a careers event at Inverness College UHI in March to learn more about career opportunities in the Information Technology sector.

The event “Your Future in IT?” was a partnership event between The Highland Council, e-skills Scotland, and the business community, supported by the University of the Highlands and Islands and HIE. Joyce MacLennan, HIE’s Head of Financial and Business Services, said: “HIE is keen

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to work with industry and education partners to raise awareness of career and study opportunities for young people across the Highlands and Islands. Together we aim to reach more young people, particularly through schools, learning providers and the University of the Highlands and Islands, to develop a skilled future workforce which will sustain current economic growth and attract additional inward investment to the area.”

Pupils attending the conference were from Dingwall, Inverness, Invergordon, Nairn, Fort Augustus, Fortrose, Tain and Kingussie. www.hie.co.uk

April/May 2014

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FURTHER DEVELOPMENTS FOR ORKNEY ENTERPRISE AREAS Plans for two new industrial buildings within Orkney’s Enterprise Areas have been unveiled

by HIE. Planning applications for two large scale buildings at Hatston and Lyness, designed to act as engineering hubs to support the development of the marine energy industry, have been lodged with Orkney Islands Council.

Lyness

Graeme Harrison, HIE’s Area Manager for Orkney, said: “We are at a very early stage in the plans for these two units but there are strong indications that this type and scale of facility will be required in the future to support the industry as it moves to the commercial deployment phase. It is appropriate and sensible to ensure we have plans and consents to respond quickly when developers require the additional facilities.”

GRADUATES ATTEND FIRST SCOTGRAD SKILLS COURSE The first residential course for the ScotGrad Graduate Placement Programme in the Highlands and Islands took place in February.

The programme in the Highlands and Islands is managed by HIE and part funded by the European Regional Development Fund.

The 18 graduates who attended the tailored business skills course are amongst 60 currently employed to work on innovative projects by businesses and organisations across the area. The projects take place across growth sectors in Scotland, like renewable energy and creative industries, and cover diverse areas such as marketing, science and community development.

John Fraser, a BA (Hons) Politics graduate from the University of Strathclyde, is employed as Graduate Logistics Coordinator at Fresh Marketing in Dingwall.

He said: “Coming to this course has completely changed my understanding of my role within my workplace. The information and activities that we have undertaken have made

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me realise that I am not just a member of staff but a vital part of the organisation and its future. The relaxed but focused atmosphere is the perfect environment for learning these new ideas and exchanging experiences with people in similar working environments. The skills I have learned on the course have been invaluable and I cannot recommend it enough.”

Placements last for between six and twelve months.

www.hie.co.uk

April/May 2014

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AWARD WINNING BUSINESSES Four businesses in the Highlands and Islands with close working links to HIE have been recognised in two prestigious business awards.

Argyll seafood processor Loch Fyne Oysters and Bute Fabrics are among 162 UK

businesses to be recognised for outstanding achievements in the Queen’s Awards for Enterprise for their overseas sales growth.

Also, the Institute of Directors has acknowledged the skills of two Highlands and Islands leaders in their annual awards. Ronie

Walters, Financial Director, with Orkney Micro Renewables Community Interest Company picked up the SCVO Third Sector Director Award and Ben Murray, Managing Director of Keltic Seafare in Dingwall won the HIE Regional Director Award.

CAPITAL LINKS GOOD FOR BUSINESS HIE is welcoming news that flights will start between Inverness and London City airports from October 2014.

The new route by airline Flybe opens up additional options for travellers, particularly businesses who want to make the commute between cities in one day.

Added to the current direct links to Amsterdam, Gatwick, Manchester, Bristol and Belfast this new route supports the region’s access to international markets.

(L to R) : Robert Thorburn, BT, Cllr Thomas Prag, Cllr Drew Hendry, Stuart Robertson, HIE with Carse business representatives

SUPERFAST BROADBAND PROJECT PICKS UP SPEED It’s full speed ahead for the publicly funded rollout of superfast broadband across the region – with more homes and businesses receiving services and the first Scottish Island community announced for rollout in the autumn.

In March businesses from the Carse Industrial Estate in Inverness celebrated the news

that they were amongst the first premises to benefit from the £146m Highlands and Islands project being delivered by HIE as part of Digital Scotland.

In April, Shetland and Keith joined the growing list of locations set to see the fibre rollout soon. Over the next six months premises in Inverness-shire, Dingwall, Avoch,

Rosemarkie, Ardersier, Nairn, Fort William, Moray, and Argyll will all see the fibre network deliver services in their areas.

During the summer months the mammoth engineering task of laying subsea cables to connect island communities will also begin.

Keep up to date on www.hie.co.uk/digital

COULD YOUR BUSINESS BE A CO-OPERATIVE? HIE is working with Co-operative Development Scotland (CDS) to bring together businesses which may be looking at innovative options for future ownership.

Alness-based, employee-owned business Aquascot is hosting an event on June 4 for businesses interested in finding out more.

This is the second in a series of five events organised by CDS visiting Scottish businesses

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that chose employee ownership to solve their succession issue.

Further details are available on the HIE website http://www.hie.co.uk/acquascotevent www.hie.co.uk

April/May 2014

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ENGAGEMENT Working with government and parliament Ag obair leis an riaghaltas agus a’ Phàrlamaid

TRANSPORT INITIATIVE LAUNCHED AT INVERNESS CAMPUS Transport Minister Keith Brown was in Inverness in February to launch a £2.7m transport project from HIE’s Inverness Campus.

The East Inverness Bus Improvement Corridor Project, which will be delivered in partnership

by HITRANS, The Highland Council and Stagecoach North Highland, was one of thirteen bus projects in Scotland to receive grants under the first round of Transport Scotland’s Bus Investment Fund (BIF).

The project will see major investment into local bus services including: new efficient vehicles operating on the busiest bus routes in the city; improved bus timetable and service information at stops and in real time at the busiest locations; new bus shelters; and a series of bus priority measures which will form the basis of a Quality Partnership between the partners over the next three years.

The launch took place at the site of the new Inverness Campus which is one of the

(L to R) Councillor Graham Phillips, Minister Keith Brown, Steve Walker Managing Director Stagecoach North Scotland, Ranald Robertson HITRANS, and Ruaraidh MacNeil of HIE.

key destinations which will benefit from the improved bus services and infrastructure.

Ruaraidh MacNeil, HIE Project Director for the Inverness Campus, said: “HIE is developing Inverness Campus as a world-class location, home to business, academic and community activity. Good transport links are a vital part of ensuring that the Campus is easily accessible for the researchers, business people, students and members of the public who will use its facilities.”

YOUTH VOICE SPEAKS AT APPRENTICE DAY HIE was one of a number of organisations which took part in Apprentice Day in March – with two teenage pupils from Highland Youth Voice opting to work with business innovation colleagues in HIE’s Cowan House.

The aim of Apprentice Day is to give young people a better understanding of public services and how these impact directly on their lives.

Emily Kerr and Charlotte McLure from Grantown Grammar School found out about HIE’s Science Technology Engineering and Maths work, as well as graduate placements/ apprenticeships, the ScotGrad programme and innovation services.

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(L to R) Emily and Charlotte

www.hie.co.uk

April/May 2014

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NEW ENERGY FOR ORKNEY MARINE RENEWABLES CENTRE Two prominent figures in the energy industry were appointed to the Board of Europe’s leading marine energy testing facility in February.

The European Marine Energy Centre (EMEC), based in Orkney, is the first and only centre of its kind in the world to provide developers of wave and tidal energy converters with

purpose-built, grid connected and accredited open-sea testing facilities.

Andrew Mill joins the Board as Chairman Designate, with a view to assuming the role when Bill Edgar CBE steps down later this year, after serving as Chairman since 2005.

Andrew was the first Managing Director of EMEC from 2003 to 2005. He is currently

the Chief Executive Officer of the National Renewable Energy Centre (NaREC) in Blyth, Northumberland.

Ron Chapman has joined the Board as a Non Executive Director, replacing Hugh MacNab who stood down last year. Mr Chapman is a Civil Engineer and is currently the Chairman of the Water Research Centre, based near Swindon, Wiltshire.

Minister for Energy Fergus Ewing was joined by HIE Chairman Prof Lorne Crerar at Arnish

SUMMIT EXPLORES STEPS TO ISLAND CONNECTION Minister for Energy, Enterprise and Tourism Fergus Ewing chaired an Island Summit in Stornoway focused on providing transmission connections to Shetland, Orkney and the Outer Hebrides.

The summit was convened to agree the remaining required steps to connect the islands following the December announcement

by DECC that a higher renewable energy incentive (strike price) would be offered to island wind projects to offset transmission charges faced.

All of the main island project developers were represented and Ofgem, National Grid, SHET (transmission arm of SSE) and DECC all sent senior personnel. The summit was also

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attended by HIE’s chairman Prof Lorne Crerar and the leaders of the islands councils.

While connection dates are moving out to 2019, HIE will continue to work with industry, local authority partners and Government to develop and deliver a solution to island connections.

www.hie.co.uk

April/May 2014

KEY FACTS

Things you may not know about the Highlands and Islands Rudan inntinneach mun Ghàidhealtachd ‘s nan Eilean

Population of the Highlands and Islands is 466,112 (2011). This represents an increase of 7.5% since 2001 and compares to a 4.6% increase overall in Scotland.

Tha àireamh-sluaigh na Gàidhealtachd is na h-Eileanan aig 466,112 (2011) – àrdachadh air 7.5% bho 2001 an taca ri 4.6% àrdachadh gu h-iomlainn ann an Alba.

Employment rate in the Highlands and Islands at 75.7%, is significantly higher than the rate for Scotland at 71.0% (2013).

Tha an ìre-cosnaidh anns a’ Ghàidhealtachd agus na h-Eileanan (75.7%) nas àirde na ann an Alba (71.0%) (2013).

Self-employment rate in the Highlands and Islands is 11.8%, which compares to 7.6% in Scotland (2013).

Tha an ìre fèin-fhastaichte anns a’ Ghàidhealtachd is na h-Eileanan aig 11.8%, an taca ri 7.6% ann an Alba (2013).

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The Highlands and Islands area covers over 50% (39,900 sq km) of Scotland’s land mass, despite having only 9% of Scotland’s population. Population density is 12 people per sq km, compared to 127 people per sq km in the rest of Scotland.

Tha an roinn a’ còmhdachadh còrr air 50% (39,900sq cm) de meallfearainn na h-Alba, a dh’ aindeoin 9% de sluaigh na h-Alba. Tha dlùths àireamh an t-sluaigh 12 duine gach cilemeatair ceàrnagach an taca ri 127 duines gach cileameatair ceàrnagach ann an àiteanan eile air feadh Alba.

Claimant count unemployment in the Highlands and Islands over the past few years has been consistently below the Scottish and UK rates. (March 2014: Highlands and Islands 2.2%, Scotland 3.2%, UK 2.9%.).

Tha cìon-cosnaidh cunntais neach-tagraidh air a bhith tòrr nas lugha na ìre Alba agus RA air na cuid bliadhnaichean a dh’fhalbh. (Màrt 2014: A’ Ghàidhealtachd is na h- Eileanan 2.2%, Alba 3.2%, RA 2.9%.)

The female dominated sectors of education, human health and social work are the largest employment sectors, employing nearly 30% of the workforce in the region.

‘S iad na roinnean-obrach fo bhuaidh boireannaich (foghlam, slàinte daonna agus obair shòisealta) na h-earrannan fastaidh as motha, a’ fastadh 30% de luchd-obrach san roinn.

The business start-up rate is higher in our region compared to Scotland with 2.7 new start-ups per 1,000 of the population compared to 2.2 per 1,000 in Scotland (2013).

Tha an ìre aig a bheil daoine a’ tòiseachadh gnìomhachasan nas àirde nar roinn an taca ri Alba, le 2.7 daoine ùr gach 1,000 den sluaigh againn, an taca ri 2.2 gach 1,000 ann an Alba ann an 2013.

Gross annual pay for all employee jobs in the Highlands and Islands of £18,971 is around 9% lower than the equivalent for Scotland (2012).

Bha am pàigheadh bliadhnail de £18,971 airson a h-uile luchd-obrach sa Ghàidhealtachd is na h-Eileanan, timcheall air 9% nas lugha Alba gu lèir (2012).

• (This information provides the latest available data from the most reliable sources.)

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lights www.hie.co.uk info@hient.co.uk Published by Highlands and Islands Enterprise, All images are copyright Highlands and Islands Enterprise.

All written material Crown Copyright.

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