Fire budget increases to £21.5m

Vehicles will have to be converted to the new Firelink system

The costs of funding pensions and preparing for a new national communication system have impacted on a fire service's budget for 2008/09.

Highlands and Islands Fire and Rescue Service chiefs will present a budget of £21.5m - a 6.5% increase on the previous year - to board members.

However, bosses will report that efficiency savings of £405,000 have been identified.

Pensions costs have been calculated at running to £610,000.

'Pensions bulge'

The 2008/09 budget will have £370,000 funded from the service's revenue reserve.

A previous report to Highlands and Islands Fire Board, told how a large UK-wide recruitment drive in the 1970s meant there was a substantial increase in the number of employees eligible to retire after 30 years' service.

The so-called "pensions bulge" was one of three pressures on the service's budget for 2008/09.

Training and converting vehicles for Firelink - a national communication system - and payments for professional development also had an impact.

The fire board will meet on Friday.