'Fragile area' firms given funds

HIE is a public economic development agency

So called "fragile" communities in remote and rural parts of Scotland are to see a share of more than £220m of government funding.

Highlands and Islands Enterprise (HIE) has published its plans on how to spend the money over the next three years.

It will be invested in businesses and projects in the Highlands and Islands, Moray and Argyll.

Liberal Democrat MP Danny Alexander said the plan revealed cuts to the organisation's budgets.

Fragile communities are those with populations that are small or in decline, have low levels of household income and far from services that are available in large towns and cities.

The enterprise agency's latest operating plan is its first since transferring business advice services to local authorities on 1 April.

'Creating jobs'

HIE said it has committed almost £17m in 2009-10 to a number of projects and was assessing about 20 others before selecting those they consider will make the biggest difference to the region's economy.

Chief executive Sandy Cumming said supporting businesses remained its top priority.

He said: "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.

"HIE will be working closely with businesses and communities to help them adapt and maximise their opportunities within the changing global economic situation."

He added: "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."

Some of the funds will be channelled towards the education institution UHI, the European Marine Energy Centre on Orkney, Caithness and North Sutherland Action Plan and the Arnish industrial site on Lewis.

Money will also be invested in the Centre for Health Science and Diabetes Institute and proposed development of a campus at Beechwood, both in Inverness, Moray 2020 Action Plan, Mareel centre for creative industries on Shetland and Kintyre Action Plan.

Mr Alexander said HIE deserved credit for the planned investment in the face of cuts to its funding.

He added: "HIE is being forced to narrow its focus to certain sorts of businesses and the plan itself describes the financial settlement as 'challenging'."