Talks over enterprise budget cuts

HIE covers an area making up more than half of Scotland

Concerns over cuts to Highlands and Islands Enterprise's (HIE) budget have been raised by the Liberal Democrats.

The party's Scottish rural development spokesman and Orkney MSP, Liam McArthur, met with HIE chiefs to raise his worries about its funding.

The Liberal Democrats said the Scottish Government agency has seen its budget cut by more than £50m.

However, HIE chief executive Sandy Cumming said he was satisfied it had the appropriate resources.

Experienced staff

Liberal Democrat Highland MPs Danny Alexander and Charles Kennedy have also been expressing concerns about the government body's spending power following a government spending review.

Mr Cumming said: "Last year's comprehensive spending review required the government to fix demanding budgets across the public sector and HIE was no exception.

"We are satisfied that we have appropriate resources for our more focused role aimed at getting best growth performance from the economy of the Highlands and Islands."

He added that there would be occasions when the agency could draw on other sources of government and European funds.

The agency has responsibility for assisting economic growth in an area covering more than half of Scotland.

It has teams and offices from Argyll up through the Highlands to the Western Isles and Northern Isles.

In 2007, it underwent changes to its management structure, which led to accusations from Scottish Labour that experienced staff were lost.