HIElights November/December 2014

ISLAND BAKER GOES GLOBAL

ENERGY PROJECT IS WORLD FIRST

SUPERFAST SHETLAND

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lights Building our future across the Highlands and Islands

November/December 2014

Issue No. 14

Fergus Ewing MSP, Minister for Business, Energy and Tourism, officially opens the European Marine Science Park (EMSP) at Dunstaffnage, near Oban, Argyll - see page 03

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

IN THIS ISSUE Argyll’s new centre for marine science Auction mart boost for crofters Community broadband Gaelic valued at £81m - £148m New air links with Norway 600 jobs in Cromarty Firth development £2.3m boost for creative industries

• Strengthening communities and fragile areas

Shetland aims for excellence

• Developing growth sectors, particularly distinctive regional opportunities

Life science firms’ new accelerator

• 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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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

November/December 2014

OUR PRIORITIES

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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

Sureclean staff in Alness.

ALNESS COMPANY GROWS INTO NEW HQ Alness based cleaning contractor Sureclean has expanded into new global headquarters, with assistance from HIE. Sureclean, established in 1985, provides industrial cleaning services to businesses worldwide. The company has grown continuously over the years expanding its operations in Egypt, West Africa and Kazakhstan.

Turnover has grown from £12m to £22m in the past three years. Temporary cabins had to

be added to the original premises in Alness to accommodate the majority of the company’s growing workforce, which now stands at 130.

The new HQ, Cromba House, is close by.

It features a comfortable working environment for employees, combining ergonomic meeting, training and welfare facilities, and has been designed to minimise Sureclean’s environmental impact. Biomass, solar and air source technologies enhance the efficiency of the building, and there is also space for further growth.

The £2m development received a £400k grant from HIE, which has provided help and advice to the company over many years.

Robin Gilbert, HIE Senior Development Manager, said: “The energy industry is a key sector for the Inner Moray Firth economy and Sureclean is an important member of the supply chain with significant international business. We are pleased to provide a grant to help expand its Alness base and look forward to Sureclean’s continuing success and further growth.”

SHETLAND FIRM TO BUILD PIONEERING PROTOTYPE Innovation and ambitions for growth have paid off for a Shetland boat manufacturing and engineering business.

HIE client Unst Inshore Services Ltd is working on a new type of specialised vessel for use in the oil and gas industry.

The company was approached last year while exhibiting at a show in Southampton by a client who pledged to buy the vessel if the company could build it.

HIE awarded £47,103 towards the experimental development phase of a prototype. Once complete the new vessel will be tested in line with strict criteria, including high specification durability, safety and low carbon emissions.

The project could generate valuable extra business for the company as well as creating two skilled jobs in Unst, the most northerly of the Shetland Islands.

BUILDING OUR FUTURE | A’ TOGAIL ÀM RI TEACHD DHUINN

David Priest from HIE said, “We are delighted to support this project. The company have spent many years developing their product range and capabilities and have identified a key opportunity area. They should now have the support they need to develop a quality, high specification product which will further enhance their reputation within the offshore services industry.”

www.hie.co.uk

November/December 2014

ARGYLL’S WORLD CLASS CENTRE FOR MARINE SCIENCE FORMALLY OPENED A new centre to enable the further growth of Scotland’s marine science sector has been formally opened in Argyll.

HIE developed the European Marine Science Park (EMSP) at Dunstaffnage, near Oban to enable new and expanding companies, as well as inward investors, to locate to the region which is known worldwide as a centre of excellence in marine science.

Fergus Ewing MSP, Minister for Business, Energy and Tourism, opened the new centre on 21 November. He then visited two companies already based at the Park’s Malin House; Xanthella Ltd and SAMS Research Services Ltd (SRSL).

Mr Ewing said: “The European Marine Science Park represents a significant investment by Highlands and Islands Enterprise to develop

a world class facility that will allow businesses to grow in Scotland. The Park reflects the increasing importance of life sciences to the Scottish economy to help further inspire, enhance involvement and innovation within our communities.

“The Scottish Government is committed to providing the necessary support for life sciences to thrive through the work of our enterprise agencies and to create new jobs and maintain the highest quality of business support so that ambitious companies like Xanthella and SRSL can reach their full potential.”

Douglas Cowan, HIE Area Manager, added: “The European Marine Science Park at Dunstaffnage brings together a number of businesses in Argyll and the wider Highlands and Islands which are at the forefront of

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(L-R) Alex Paterson, Chief Executive of HIE, Douglas Cowan, HIE, Fergus Ewing MSP and Morag Goodfellow, HIE.

developments in marine science, marine technology and aquaculture. EMSP is designed to enable new and expanding companies, as well as inward investors, the opportunity to locate to the region and further develop what is already a world-class centre of excellence in marine science.”

SRSL became the newest tenant of the European Marine Science Park in October. It is a marine survey and consultancy firm with offices in United Arab Emirates and Papua New Guinea. Its work at Dunstaffnage will include further development of SIMBA, a unique device for monitoring sea-ice cover around the North and South Poles.

Xanthella develops materials for research and manufacture of products such as cosmetics, dietary supplements and medicines and has achieved international sales.

www.hie.co.uk

November/December 2014

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KNITWEAR COMPANY EXPANDS ONLINE A knitwear design studio based in Hoswick, Shetland, is expanding with a new website and online boutique.

In recognition of the company’s significant growth potential, HIE is providing a £24,882 grant to help Nielanell develop the ‘alternative Shetland knitwear’ brand, as well as an online boutique, product research and development and diversification.

Nielanell is owned by designer Niela Kalra.

It produces unique garments influenced by island life but very different from traditional Shetland knitwear. The collections merge innovation and artisan tradition, combining high-quality merino and cashmere with hightech fibres.

Striking colours are constantly updated in limited collections and one-off designs.

Collections include capes, snoods, boat-

neck jumpers, tunic dresses and accessories, designed and produced by a talented local team.

Locals, visitors and cruise ship passengers have been buying Nielanell products since 2008, and the company was commissioned to design the official garments for 100 Shetland fiddlers performing at The Royal Edinburgh Military Tattoo in August.

BUSINESSES URGED TO REACH FOR THE EDGE More entrepreneurs from the Highlands and Islands have been attracted to apply to the EDGE fund, ScotEdge, after additional contributions totalling £2.3m were announced.

ScotEdge helps some of business’s brightest talent realise their growth potential with funding, mentoring and other support such as masterclasses. In August, Royal Bank of Scotland and The Hunter Foundation announced additional contributions of £2.5m and £0.7m, taking the total fund to £5.55m for the next three years.

Previous EDGE winners from the Highlands and Islands have been from creative industries, food and drink and community development. Alex Paterson, Chief Executive of HIE and one of the EDGE judges, said he’d like to see this broad showcase of innovation and talent continuing in future rounds.

“High growth businesses create jobs, attract people and investment and strengthen communities,” said Mr Paterson. “That’s why we support ambitious entrepreneurs to expand into international markets.”

HIE and business adviser Ali Murray from Atlantic Marketing are supporting potential Scotedge applicants from the region by preassessing applications and giving advice on the application form and video pitches.

Applications for the current round of Scotedge are now closed. A new round will launch early in 2015. www.scotedge.com

ORKNEY JEWELLERY BACK UNDER NEW OWNERSHIP Ortak jewellery is back on the market in Orkney in a move that has created 14 new jobs.

The Ortak Jewellery company went into administration earlier this year. However the brand was purchased by Michael Gardens, of the former Ortak company, and Alison Firth, a finance professional from Castletown.

The £506k deal included intellectual property rights and the original designs and patterns of the jewellery moulds and drawings. HIE contributed £136,400.

Michael Gardens, said, “It’s very important to be able to keep some of the employees from the old business who have the necessary skills and experience and who will be vital in bringing forward the business.”

Francesca Couperwhite, HIE’s Account Manager, added: “This re-launch of the Ortak brand retains its strong links to Orkney and is a great boost to the creative industries sector.

There is clear potential to add to the initial 14 new jobs as well, which is a further boost to the Orkney economy.”

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INTERNATIONAL E-COMMERCE WORKSHOPS Businesses across the Highlands and Islands benefited from HIE’s roadshow of free e-commerce workshops in November.

Part of the Smart Exporter programme, two workshops were provided in each location; one on developing websites to boost international business, and one on international ecommerce trading.

Workshops were held in Oban, Benbecula, Stornoway and Lerwick, with a final one taking place in Inverness focusing on international tourism ecommerce. This was held in partnership with Inverness and Loch Ness Tourism Business Improvement District (TBID).

HIE is leading a £146m next generation broadband (NGB) roll-out across the region. It is also administering the Scottish Government’s £7.5m Community Broadband Scotland programme throughout the whole country.

In tandem with this, the organisation is also leading a programme of engagement to promote uptake of NGB by the region’s businesses. As access to very fast and reliable broadband becomes available, it is important that businesses are equipped with the skills required to make the most of the new opportunities that will arise. www.hie.co.uk

November/December 2014

CAITHNESS GIN IN PRODUCTION A Caithness couple have begun production at mainland Britain’s most northerly gin distillery.

Husband and wife team Martin and Claire Murray founded Dunnet Bay Distillers and started full production of Rock Rose gin in August after installing the final piece of equipment (a new still called ‘Elizabeth’). HIE has helped the couple develop their product and is providing £83,990 over the next three years.

Claire has been working with experts in Caithness to research local botanicals for use in flavouring the gin. She said, “Our Caithness botanicals are dependent on our climate resulting in a truly hand crafted gin that will change year on year, but is still undeniably Rock Rose.”

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Martin and Claire Murray seen here in the distillery with Laura Gunn, HIE

Martin has a master’s degree in process engineering and is studying for a PhD in brewing and distillation. As part of this study, he worked on research projects to assist with product development. He said, “We are incredibly proud of what we have achieved in the last year, but we realise that a lot of hard work is ahead of us.”

PLACEMENT PROGRAMME WELCOMES 200TH GRADUATE Digital media graduate Michael Westcott has become the 200th Highlands and Islands graduate to secure a placement under the graduate placement programme, ScotGrad.

Michael graduated from Edinburgh Napier in 2013 and is on a 12 month stint with Obanbased outdoor pursuits social enterprise, Stramash.

ScotGrad is funded and delivered in the region by HIE and the European Regional Development fund (ERDF). Across Scotland the programme has placed more than 750 graduates in over 570 SMEs since 2010. The scheme won the Association of Graduate Recruiters’ Work Experience Programme Award 2014.

Meanwhile, 38 students from across the UK brought fresh ideas to companies across

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the region this summer under the ScotGrad Summer Placement Programme.

With HIE providing 50% of salary costs, students work for up to 12 weeks with local businesses and social enterprises across a range of disciplines including engineering, marketing, design and ecommerce.

Mechanical Engineering student, Paul Lang, was named top student of the year after participants showcased their projects to a business panel at the end of August. Paul is studying at Strathclyde and was placed with SGL Carbon Fibres Ltd in Muir of Ord. Another student with the same firm, Perminder Kainth, was named one of three runners-up.

The others were Simon Ambroz, who was with Orkney Fishermen’s Society and Geraldine McGeechan, who was working with Skye social enterprise Rag Tag ‘n’ Textile. www.hie.co.uk

November/December 2014

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SCOTTISH BREWERS AIM FOR US SUCCESS Three craft breweries from the Highlands and Islands took part in a Scottish Development International (SDI) trade mission to North America in October.

North America is a primary target market for the Scottish craft brewing industry and interest from global markets is at an all time high.

Companies taking part in the SDI mission

included Loch Ness Brewery, Fyne Ales, and Spey Valley Brewery.

The learning journey included meetings with retailers, distributors and importers, the US Craft Brewers Association, and the Liquor Control Board of Ontario – the largest buyer of alcohol in Canada.

The US beer market is worth an estimated $99bn, with craft beer making up approximately 15% by voume and 17% by value.

The Scotland Food and Drink Export Plan, developed jointly by the industry and government, aims to capitalise on the industry’s success by focusing on 15 key export markets.

L-R : Lorne Crerar, HIE Chairman, Alasdair Maclean Stag Bakeries, Rachel Mackenzie, HIE, Roddy Macdonald Stag Bakeries, Donnie Macleod Stag Bakeries and Alex Paterson, HIE Chief Executive.

ISLAND BAKERY TARGETS GLOBAL MARKETS Stag Bakeries on Lewis is to extend its premises and employ new staff as part of a major development. HIE has approved £116,700 toward the £500k project.

The Stornoway bakery currently employs 41 people and plans to expand by up to 30% over the next three years.

HIE has been working with owner Charles Macdonald since 2009 and has helped the company to realise its strong export potential.

The award-winning firm started to export its bakery and confectionery products a year ago and now sells products to 11 countries including Ireland, Canada, Belgium, Norway, Russia and Portugal. Most recently, it moved into the Chinese market.

HIE Area Manager Rachel Mackenzie, said, “Ambitious businesses such as Stag bakeries are making a real difference to achieving growth aspirations, and are very important to the islands.

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“This is an excellent example of an ambitious local business successfully using access to a wide range of knowledge to access markets around the world.”

Plans are under way for the company to introduce new products next year which reflect its commitment to innovation and product development.

www.hie.co.uk

November/December 2014

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

CREATIVE ORKNEY CONFERENCE The distinctive culture of Orkney was the focus of a two-day conference in September.

Held at the St Magnus Centre, Kirkwall, Creative Orkney comprised workshops, talks, a discussion forum and field trips to examine why Orkney has such a successful and active arts community, and how it can continue to prosper.

Organised by the Centre for Nordic Studies (CNS), part of the University of the Highlands and Islands, the event was funded by HIE,

Creative Scotland, Visit Scotland, and Orkney Islands Council.

The programme included a field trip to the Heart of Neolithic Orkney World Heritage attractions, a tour of the award-winning Pier Arts Centre, Stromness, creative workshops including jewellery-making, the work of photojournalist Gunnie Moberg and an art workshop with Orkney College UHI.

Speakers included writer and researcher Franҫois Matarasso, who was commissioned

by HIE in 2012 to conduct a study into the reasons behind Orkney’s success in arts and culture.

In his report, Stories and Fables, he described Orkney’s arts scene as exemplary, highlighting a combination of outstanding natural beauty and landscape, archaeology, and historical and open interaction between Orcadians and people from across the world.

L to R: Anne Sutherland, Tony Gill and Ellen Sutherland of BaDAG with Councillor Deirdre Mackay and Peter Guthrie of HIE.

SUTHERLAND VILLAGE LAUNCHES WI-FI HOTSPOT Visitors to and residents of Brora in Sutherland now have access to an open wi-fi zone as part of a new community pilot project.

The service has been set up in the village centre with a high speed broadband router and antennas linked to a BT line. Public access is free for a set time and limited data download, with charges following for further use.

The Brora and District Action Group (BaDAG) developed the project to benefit local businesses and visitors. HIE is providing £40k over three years and the Albyn Community Fund has helped with signage. Tony Gill, chairman of BaDAG said, “This project will attract people to the village centre and ensure retail, hospitality, service, visitor attractions and leisure providers are quickly on their radar.”

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Peter Guthrie, HIE’s Head of Strengthening Communities for the area, said: “This pilot project will put the village of Brora on the digital map, attract visitors and raise local revenue. In the future it will provide the opportunity for the local development trust to operate the project as a social enterprise.”

www.hie.co.uk

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CEÒLAS WINS HIE SPONSORED GAELIC AWARD

Pictured here (L-R) Cathie Macdonald (Gaelic broadcaster), Alana MacInnes, Shona Mackay and Maria MacInnes all from Ceòlas, Iseabail MacTaggart HIE Board member

Gaelic music summer school based in South Uist, Ceòlas, have won the HIE sponsored ‘Gaelic as an Economic Asset’ award at the Scottish Gaelic Awards 2014 which took place at the Radisson Blu Hotel, Glasgow last night (Wednesday 19 November).

and our partners are delighted to promote projects which celebrate people who are finding innovative ways of using Gaelic as an economic asset and we congratulate all those who were shortlisted, and in particular Ceòlas on their achievements.”

The prestigious ceremony honours the very best in learning, achievement and development across all sectors of society and celebrates the great work being done by and for Gaelic in every corner of Scotland.

Hosted by Gaelic broadcaster, Cathie Macdonald, the event is sponsored by the Daily Record, HIE, Bòrd na Gàidhlig, Education Scotland, and MG ALBA.

Ceòlas received their award from HIE Board member Iseabail MacTaggart. She said: “HIE

Winners from other categories are available at www.scottishgaelicawards.co.uk

Pictured here members of Who We Are, at the official ribbon cutting ceremony.

HIE SUPPORTS BUYOUT OF ARGYLL WOODLAND An Argyll community has celebrated after buying the 37 hectare Ballure Woods with the help of a £125,000 grant from HIE.

sustainable timber supply. This development will also help to support and enhance social and educational activities.

improved access, events and volunteering activities. We’ll continue to work with them to help them achieve sustainable growth.”

The buyout will allow the company to generate more income and provide a range of economic, social and environmental benefits, and create new jobs.

HIE’s Claire Munro, said: “We are delighted to support the purchase this woodland which presents a fantastic opportunity to grow the company. This asset will enable the community to create efficiencies by providing a local and affordable supply of timber for its biomass processing operation. It also gives the group an opportunity to establish a further range of projects within the woodland, including

John MacDonald, Chair of Here We Are, said: “We are all very excited to have had our offer accepted on the woodland and delighted that we can now continue with our plans for development of our renewable energy business and community projects. Our committee and volunteers have worked hard for many years towards this and we thank HIE for their support and financial assistance.”

Here We Are is also developing a one megawatt hydro scheme. Ownership of the woodland will expand the business by providing the company with a local and

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www.hie.co.uk

November/December 2014

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RANNSACHADH A’ SEALLTAINN LUACH NA GÀIDHLIG DO GHNOTHACHASAN IS CHOIMHEARSNACHDAN ANN AN ALBA Tha an luach eaconamach is sòisealta aig Gàidhlig mar so-mhaoin àraid do dh’Alba aig cridhe rannsachadh ùr leis an tiotal Ar Stòras Gàidhlig.

dh’obraich iad a-mach gum faodadh gum biodh an luach eaconamach comasach aig Gàidhlig mar so-mhaoin eadar £81.6m agus £148.5m gach bliadhna.

Tha HIE air a bhith a’ stiùireadh pròiseact compàirteachais gus rannsachadh a dhèanamh air na dòighean anns a bheil Gàidhlig ga cleachadh an-dràsta.

Bha faisg air 70% de ghnothachasan ris an deach bruidhinn a’ cumail a-mach gun robh Gàidhlig na so-mhaoin dha na gnìomhan aca.

A rèir Alasdair Allan, Ministear na Gàidhlig: “Tha na th’ anns an aithisg seo a’ toirt misneachd dhuinn agus tha min dòchas mòran a bharrachd bhuidhnean fhaicinn a’ faighinn buannachd às a’ Ghàidhlig anns na bliadhnachan ri teachd le bhith a’ leantainn nan eisimpleirean seo agus a’ togail air soirbheas.”

A’ sgrùdadh dàta bhon luchd-freagairt, chaidh aig luchd-rannsachaidh air dèanamh a-mach gun robh a’ bhuaidh iomlan a bh’ aig cleachdadh na Gàidhlig air tionndadh a’ ruigsinn £5.6 millean. Bhon bhuil seo,

Tha grunn eisimpleirean de na gnothachasan a tha an-dràsta a’ cleachdadh Gàidhlig mar so-mhaoin rim faicinn ann an aithisg fhèin, nam measg Ionad Ealain An Lanntair ann an Steòrnabhagh.

Tha Ar Stòras Gàidhlig ri fhaighinn gu tur no mar ghearr-chunntas air an làrach-lìn aig Iomairt na Gàidhealtachd ’s nan Eilean aig www.hie.co.uk/Gaelicresearch

NEW REPORT VALUES GAELIC AT £81M-£148M A new study has highlighted the value of Gaelic as an economic and social asset.

the survey stated that Gaelic features as a key element of their work.

Ar Stòras Gàidhlig (Our Gaelic Resource), has demonstrated how the language is being used to add value in different circumstances and suggests considerable potential for it to bring further benefits to businesses, communities and individuals.

By analysing the responses, the researchers were able to quantify that the combined impact on turnover which was attributable to their use of Gaelic totalled £5.6m.

Almost 70% of businesses consulted said that Gaelic is an asset to their activities. More than half of businesses (60%) and 85% of community organisations who responded to

From this, they calculated that the potential economic value of Gaelic as an asset to the wider Scottish economy could be from £81.6m to £148.5m a year. Ar Stòras Gàidhlig is available in full and summary forms at www.hie.co.uk/research

AUCTION MART GOOD FOR CROFTERS An auction mart which provides a sale venue for crofters in the Outer Hebrides has received a grant of £13,513 from HIE. Lewis and Harris Auction Mart, at Steinish in the Isle of Lewis, is developing a penning area to make the mart more sustainable.

The project involves surfacing a particular part of the mart and constructing a penning area with fixed and adaptable steel sections, allowing the area to be cleaned down into drains.

Iain Begg of HIE, said, “Crofting has a significant and important economic role and by improving the mart, a number of communities around Lewis and Harris will benefit. Stock numbers, particularly lambs have increased at the sales and this project will ensure a high standard of animal welfare.”

Funding for the project was also approved by Muithebhal Community Windfarm Trust and Lewis Endowment Fund.

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www.hie.co.uk

November/December 2014

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LAND FUND AIDS FIRST ARRAN COMMUNITY PURCHASE Plans to bring the first piece of land on the Isle of Arran into community ownership have received £181,500 from the Scottish Land Fund, administered by HIE and the Big Lottery Fund.

Arran Community Land Initiative will use the award to buy 80 acres of undeveloped farmland near Whiting Bay. Part of the land will be developed to produce a variety of

organic crops and soft fruits, allotments will be created and a community orchard established.

New footpaths and cycling routes will be developed for locals and visitors and the group will run volunteering and training opportunities.

Scottish Land Fund Committee Chair, John Watt, said, “Today’s award is especially significant as it puts the people of Arran on a path to community ownership for the first time.”

Ailsa Raeburn of HIE said, “HIE has been working with Arran Community Land Initiative since it was established in 2013, supporting the group to develop their ideas and engage with the local community.”

The Scottish Land Fund is funded by £9 million from the Scottish Government.

TWO MORE VILLAGES GET FASTER BROADBAND Marykirk in Angus and Cousland near Dalkeith have become the latest villages in Scotland to combine the benefits of rural life with access to the digital fast lane.

Businesses and residents in each location have seen their broadband download speeds increase from around one to as much as 20 Mbps per second. The projects are the result of partnerships between local volunteers with support from Community Broadband Scotland (CBS).

Pictured here (L-R) Ronnie Reid (Marykirk. com’s 1st customer), Bill Buchan (Marykirk.com) and Shaun Marley from Communities Broadband Scotland.

CBS, as part of HIE, has been tasked by the Scottish Government to work with communities across Scotland who are unlikely to benefit from the £410 million Digital Scotland Superfast Broadband project. As part

FINDHORN BAY ARTS FESTIVAL 2014

Bill Buchan of marykirk.com said: “The support from CBS made the difference. The great part of this job is the look on people’s faces when internet services, which many people take for granted, work for the first time. Simple things such as BBC iPlayer, Skype, Netflix, or even YouTube.

“It’s so important for rural folks to get as good as, if not better access to the internet than folks in urban areas. I’m glad that we’re able to redress some of this imbalance for our area.”

Macbeth the Remix was a highlight of the Findhorn Bay Arts Festival.

Scotland’s newest arts festival, took place around the ancient market town of Forres and the beautiful Findhorn Bay between 24 and 28 September.

The festival also brought Macbeth ‘home’ to Moray as part of the year of Homecoming Scotland 2014, in a celebration of both the Real King and Shakespeare’s Macbeth.

The first Findhorn Bay Arts Festival attracted over 7,000 visitors to see local, national and international artists at around 50 events, including a colourful mix of outdoor theatre, live music, fine art and photography, tours and talks.

Macbeth: the Red King included a programme of talks and tours, while Macbeth the Remix – a stunning outdoor performance – brought the magic of Shakespeare’s play to vivid life at Brodie Castle.

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of the Scottish Government’s Digital Scotland strategy, it helps them find sustainable ways to get faster broadband.

HIE invested £45,000 towards a total project cost of £235,700 with other contributions from Homecoming 2014, Event Scotland, National Events, Creative Scotland, Moray Council and National Trust for Scotland.

The economic impact from the festival is projected to be up to £1.3m.

www.hie.co.uk

November/December 2014

OUR PRIORITIES

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

ARGYLL RESEARCH BODY IN £322K EXPANSION The expansion of one of Europe’s largest aquaculture research facilities in Argyll is reinforcing Scotland’s reputation as a world leader in marine science.

The Marine Environmental Research Laboratory (MERL), part of the University of Stirling’s Institute of Aquaculture, is based at Machrihanish. It provides research services and facilities to academics and the fish farming industry, including multinational corporations.

HIE is providing £90k for MERL’s £322k expansion and upgrade. The move will increase the number of research tanks at the facility, and create more jobs and turnover.

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The laboratory’s main focus is on new product development in veterinary medicine, vaccines and functional feeds for salmon farming.

It is developing safe and environmentally acceptable sea lice control products, including ones from natural products. The annual cost to the industry from sea lice is around £33m in Scotland.

Fish farming is a major employer in the Highlands and Islands. Investment in research infrastructure is vital to its future prosperity.

HELP FOR FIRMS TO WIN OIL AND GAS BUSINESS Twenty people from companies looking to win business in the Oil and Gas Sector attended HIE’s ‘Access to Oil and Gas’ event in October.

HIE’s energy team organised the event as part of wider efforts to help local companies benefit from the sector.

Highlights included a general sector update, advice from a major company operating in the sector and the benefits of registering on the industry database FPAL. Two presentations also gave details of the kind of support offered

by Business Gateway and HIE. People who were unable to attend can access the presentations at www.hi-energy.org.uk

MARINE RENEWABLES CONFERENCE Inverness played host to the Scottish Renewables Marine Conference for the fifth time in a row on 22 and 23 September. Around 350 delegates attended from all over Europe.

Innovation was the main theme, with sessions relating to financing innovation, grid links, planning and consents. The conference pointed to the hi-tech nature of the marine energy sector, with the Highlands and Islands well placed to support it either with research and development or a skilled workforce.

In his address, HIE Chief Executive Alex Paterson emphasised the importance of the MeyGen Tidal Stream Project, another marine energy world first for the region taking place in the Pentland Firth.

Pictured here Gavin Mackay of HIE.

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A key message throughout the two-day event was the importance of developing the right technology for the long term future of marine energy in Scotland. Avoiding duplication of research and focusing on solving technology problems in a more collaborative way featured in many discussions. www.hie.co.uk

November/December 2014

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INTERNATIONAL CONFERENCE ON NATURAL PRODUCT ECONOMY The economic opportunities associated with natural products came under the spotlight at the international Natural Product Biotechnology conference in Inverness in November.

Speakers shared presentations with an audience of 250 people from across the globe.

Topics covered included the use of natural products in drug discovery, foods and supplements, personal care products and cosmetics.

Scotland, like many other countries, has ambitious targets to increase the contribution

of this sector to long term sustainable economic growth.

There is increasing global interest in the value of biologically active natural compounds in the development of therapeutic agents. The use of renewable raw materials in innovative approaches to lowering greenhouse gas emissions is also attracting attention.

With its maritime climate supporting rich sources of natural products, the Highlands and Islands was ideally placed to host the event.

Addressing the conference, Alex Paterson

HIE Chief Executive, said: “I am very pleased to see this conference in Inverness. The Highlands and Islands is a strong sustainable, digitally connected, low carbon business location, and a great place to locate or expand a business.

“Over the past ten years the life sciences sector has grown rapidly in the region. New developments in biotechnology offer a significant opportunity for further sustainable growth, based on renewable sources of raw materials and low carbon processes.

This is also good news for the renewal and development of rural and coastal communities.”

600 JOBS IN CROMARTY FIRTH DEVELOPMENT HIE is investing £3m in a £25m project to develop a deep water quayside at the Port of Cromarty Firth that is expected to create 600 new jobs.

The development will offer an additional deep water quay and essential laydown space, both of which are greatly in demand by the oil and gas market and the renewables sectors.

L to R: Energy Minister Fergus Ewing, HIE Director of Energy and Low Carbon Calum Davidson, Port of Cromarty Firth Chief Executive Bob Buskie.

The 35-acre Invergordon Service Base has been operating close to capacity for many years. The new investment will see an

BUILDING OUR FUTURE | A’ TOGAIL ÀM RI TEACHD DHUINN

additional nine acres of land reclaimed as part of an ongoing programme by the Port.

Announcing the HIE contribution, Energy Minister Fergus Ewing said, “This is another sign of confidence in Scotland as a great place to do business and a great place to invest.”

Bob Buskie, CEO for the Port of Cromarty Firth, added: “The expansion is a crucial step forward for the Port in securing future opportunities and supporting the economic health of the wider region.” www.hie.co.uk

November/December 2014

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AGENTS APPOINTED TO BOOST ARGYLL TOURISM Argyll and the Isles Tourism Co-operative (AITC), has appointed seven new development agents, to work with marketing groups and tourist associations to build capacity and membership across the tourism sector.

AITC was formed in 2012 and is supported

by VisitScotland, Argyll and Bute Council, HIE and Scottish Development International. It works at local and national level to promote Argyll and the Isles as a must visit destination.

The new part-time posts are funded by HIE. Tourism is a vital growth sector for the region, and Argyll and the Islands is no exception.

The agents started work in October and each covers a specific area within Argyll and the Isles.

“[The agents] join a team which is committed to ensuring that Argyll and the Isles has the infrastructure and support in place to enable it to reach its full potential, and we very much look forward to seeing their work starting to bear fruit over the next few months.”

AITC Chair Gavin Dick welcomed the appointments as a step forward in the efforts to grow tourism capacity and tackle priority projects at a local level.

More about AITC is available at www.exploreargyll.co.uk

£2.3M BOOST FOR NEW CREATIVE INDUSTRIES STRATEGY Four contractors have been appointed to deliver the Highlands and Islands Creative Industries Network Programme over the next three years.

The appointments follow HIE Board approval of a new Creative Industries Strategy and a £2.3m contribution for its implementation.

The network programmes will cover screen and broadcast; music; writing and publishing; and crafts, fashion and textiles.

Atlantis turbine prior to launch for testing at the European Marine Energy Centre (EMEC) in 2011

TIDAL ENERGY PROJECT IS A WORLD FIRST The first phase of the world’s largest tidal energy project is moving forward in the Pentland Firth, after partners agreed a £50m funding package. The MeyGen project will see four turbines installed in the Inner Sound of the firth over the next two years, rising to 61 turbines by 2020. It is expected that it will produce enough power for approximately 42,000 homes in Scotland.

HIE is providing a £3.3m grant. Calum Davidson, HIE Director of Energy and Low Carbon said, “The marine renewables developments in the Pentland Firth and

Orkney Waters have truly put this region on the global marine renewables map.

“With the expertise developed at Orkney’s European Marine Energy Centre (EMEC) over the past ten years, we now have internationally recognised expertise on our doorstep to develop the industry here. The MeyGen project is a huge step in moving the industry towards commercial electricity production.”

He added, “This is an exciting time for Caithness businesses which will have opportunities to support the project.”

BUILDING OUR FUTURE | A’ TOGAIL ÀM RI TEACHD DHUINN

ScreenHI is leading on the screen and broadcast work. The music contract is being run by Inverness Ironworks. Emergents CIC will deliver both the writing and publishing, and the crafts, fashion and textiles networks, in collaboration with national sector bodies.

The contracts will also combine to deliver XPONORTH (formerly goNORTH), a twoday festival for creative industry networking, workshops and performances.

Iain Hamilton, Head of Creative Industries at HIE, said: “This is about providing support to help the region’s creative businesses, sole traders and freelancers to keep growing.

Between them, the contractors provide valuable practical support on, for example, industry and markets, use of digital platforms and collaboration, particularly international.”

The creative industries sector generates more than £300m for the Highlands and Islands economy and employs more than 16,000 people (7.7% of total employment in the region). www.hie.co.uk

November/December 2014

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L to R: LPA Chief Executive Sandra Laurenson, Chairman Harry Jamieson, James Johnston of Peterson, HIE Area Manager Rachel Hunter, and Senior Development Manager Katrina Wiseman.

SHETLAND TO BECOME DECOMMISSIONING CENTRE OF EXCELLENCE Shetland is set to become a global leader in the multi-billion pound oil and gas decommissioning industry, following the announcement of two major developments totalling £20m.

Lerwick Port Authority (LPA) is planning an £11.95m quayside expansion which will enhance decommissioning capability and support around 120 permanent jobs. HIE is providing almost £1.2m, including £324,416 through the European Regional Development Fund (ERDF). The Scottish Government is also providing £1.2m.

The second project involves international energy logistics company Peterson (United Kingdom) Ltd, and its decommissioning partner, Veolia. They are proposing investing up to £8.64m in Peterson’s ‘Deep Water Shetland’ project to expand decommissioning capability and create around 67 high value jobs. HIE plans to contribute £628k to this development, and a further £1.1m of Regional Selective Assistance (RSA) has been approved by Scottish Enterprise.

Announcing the investments, Cabinet Secretary for Finance, Constitution and

Economy John Swinney said, “The skills and experience gained through decommissioning projects in the North Sea will result in increased demand for these services internationally for decades to come.”

The growing oil and gas decommissioning industry has a current market value of £30bn to £40bn in the North Sea. These two strategic investments will secure Shetland’s place as a globally-significant decommissioning centre of excellence, the only one of its kind in Scotland, and at the international forefront of an emerging sector that promises decades of activity.

VIEWS SOUGHT ON MARINE TOURISM STRATEGY Businesses, communities and individuals are being asked for their views on a draft Marine Tourism Strategy.

Scotland is already recognised internationally as a world class sailing destination. Sailing tourism directly supports 2,730 jobs and generates more than £100m a year, much of it in remote rural areas. This figure is predicted

to rise to £145m in the next ten years.

Now sailing industry bodies, including the British Marine Federation (BMF) and Sail Scotland, have developed a new strategy, setting out ambitious plans to enhance Scotland’s reputation across international markets.

BUILDING OUR FUTURE | A’ TOGAIL ÀM RI TEACHD DHUINN

HIE is providing £72,446 to BMF Scotland to enable them to promote and implement the strategy, and £108k to Sail Scotland to support a chief executive post for three years, enhance the organisation’s digital presence, and support a graduate placement.

Consultation on the draft Marine Tourism Strategy runs until January 2015. www.hie.co.uk

November/December 2014

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L-R) Dr Alasdair Mort (Centre for Rural Health), Don Stewart (BlakesEye), Ian Webster (Webster and Co), Anne Roberts (Centre for Rural Health), Barry Middleton, David Sim (OpenBrolly Health), Anna Miller (HIE), Tony Reid (BioCity), Prof Philip Wilson (Centre for Rural Health), Dean Mann (BlakesEye)

LIFE SCIENCES FIRMS FIRST TO JOIN NEW ‘ACCELERATOR’ Three Highland based life science projects have become the first to take part in a new ‘Pathfinder Accelerator’ programme.

Over a 12-week period, OpenBrolly, BlakesEye and the Centre for Rural Health will have their business models tested through rigorous evidence based entrepreneurship. HIE has been working with biotechnology specialist BioCity to launch the pilot programme, which kicked off at the Centre for Health Science in Inverness on 28 October.

The 12 week long programme is for early stage life science projects. It is aimed at creating high quality jobs in the sector and helping projects develop viable commercially focussed business models. It is also intended to attract inward investment to the Highlands and Islands and grow the emerging cluster of life science in the region.

academics, healthcare, entrepreneurs and professional service providers helped create a wider network of supporting contacts and stakeholders for the Accelerator.

Further information can be found at www.hie.co.uk/lifesciences

The launch of the pilot follows an event earlier in October where more than 50 specialists from life science businesses,

BUILDING OUR FUTURE | A’ TOGAIL ÀM RI TEACHD DHUINN

www.hie.co.uk

November/December 2014

OUR PRIORITIES

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

NEW SUMBURGH AIR LINK BOOSTS TRADING LINKS WITH NORWAY Business and tourism links between Scotland and Norway are expanding with the launch of a new twice weekly air service linking Shetland and Bergen.

Norwegian airline Bergen Air Transport will launch a twice weekly service from Sumburgh Airport on 24 November. The airline will operate a 12 seat Beechcraft King Air B200 aircraft on the route.

The new service hopes to capitalise on established trade links between Shetland and Norway, particularly in the energy and marine sectors. Bergen, situated on the west coast of Norway, is a major hub for oil and gas, maritime activities and marine industries, including seafood and fish farming.

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The new service is being supported by funding of £70,470 from HIE. In early 2014, HIE and Bergen Air Transport consulted Shetland businesses and received a positive response regarding potential use of the service.

Figures show that Norway is the largest inbound business travel and tourism market in Scotland, accounting for 31,000 trips in 2013, with an average spend per trip of £548.

The scheduled service is also open to leisure passengers, with Monday and Thursday departures allowing for extended weekend breaks.

NEW PARK FOR ARGYLL BUSINESS GROWTH New premises to attract more businesses to locate and expand in Dunoon should be completed in early summer 2015.

HIE has appointed Kier Construction for the Sandbank Business Park development. Work is now under way on the 724m2 facility, which will provide flexible office accommodation for a range of businesses.

The £1.9m project includes funding of £785,705 through the European Regional Development Fund (ERDF).

HIE is also developing a masterplan for future development at Sandbank, including 5.9 acres of development land and improvements to the existing industrial estate.

MOST NORTHERLY BROADBAND CABINET OPENS Superfast broadband met superfast knitting when HIE’s ambitious rollout of next generation broadband across the Highlands and Islands reached Shetland in October.

Hazel Tindall, who holds the title of world’s fastest knitter, joined HIE, BT and community representatives to unveil what is currently

Scotland’s most northerly fibre broadband cabinet.

publicly funded Digital Scotland Superfast Broadband programme.

Around 4,000 homes and businesses in Lerwick, Quarff and Sumburgh can now order the fibre based services, and more places will follow in 2015. Mainland Shetland is the first Scottish island connected through the £146m

Just over 30,000 premises across Highland, Moray, Argyll and Shetland can now access services because of the partnership investment.

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www.hie.co.uk

November/December 2014

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DIGITAL SCOTLAND SUPERFAST BROADBAND ROLL-OUT PASSES MILESTONE IN RECORD TIME First Minister Nicola Sturgeon has confirmed that 150,000 homes and businesses in communities across Scotland, including 30,000 in the Highlands and Islands, can now benefit from fibre broadband thanks to the Digital Scotland Superfast Broadband partnership.

So far, engineers have laid around 300km of sub-sea cable and 2,400km of cable on land – enough to stretch from Shetland to Land’s End in Cornwall and back again – and installed around 600 new street cabinets to house connections as part of the Digital Scotland rollout.

The announcement means many more families can now connect to these services for the first time, as well as enabling businesses and organisations to diversify and expand their services.

The Digital Scotland rollout consists of two projects – one covering the Highlands and Islands area and the other covering the rest of Scotland. More than 30,000 premises are now passed in Highlands and Islands in a

£146million project led by HIE. Funding partners include the Scottish Government, Highlands and Islands Enterprise, the UK Government through Broadband Delivery UK (BDUK), local authorities and the European Regional Development Fund as well as BT.

COLLABORATION WILL LEAD TO NEW OPPORTUNITIES AT INVERNESS CAMPUS Building work has begun on a new enterprise and research centre at Inverness Campus.

The building will house a new collaboration between HIE and the University of the Highlands and Islands. HIE and the University will co-own the new building, which is expected to be completed by the end of 2015.

The University plans to locate several new research teams in the centre, creating new opportunities in addition to around 20 new

jobs. Planned features include a life sciences postgraduate education facility; a learning and teaching academy, and specialised training and accreditation for the oil and gas industry.

the promotion and development of science, technology and engineering skills to young people throughout the region, and a digital technology demonstration centre.

In addition to HIE staff, partners including the Scottish Manufacturing Advisory Service (SMAS), Interface and Scottish Development International (SDI), will also be based at the Centre. It is expected it will also include Scotland’s Rural College (SRUC) research and consultancy services activity; a facility for

Architects Sheppard Robson, designed the £11m building which is being built by Morrison Construction. Funding for the development has come from the European Regional Development Fund, University of the Highlands and Islands, HIE and The Highland Council.

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www.hie.co.uk

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

AREA VISITS

ATLAS Arts

The HIE Board visited Skye on 30 September and 1 October. Members heard from local development officers from the Glendale Trust, Raasay Community Association and Staffin Community Trust. They visited West Highland College, the Isle of Skye Bakery and IT company, Sitekit. They also visited other HIE assisted enterprises including Sleat Community Trust, ATLAS Arts, Young Films and Sabhal Mor Ostaig. Later in October the Board went to the Outer Hebrides for visits to the Creative Industries Media Centre, Arnish, Harris Tweed Hebrides, Callanish Visitor Centre and the Carloway Estate Trust.

In addition, the HIE Chairman, Lorne Crerar, and Chief Executive, Alex Paterson, visited other areas in November. In Caithness and Sutherland they heard from the Dornoch Area Community Interest Company about their strategy for promoting the town. The Wick Harbour Authority briefed them on progress with the marina and the heavy lift pad, and they discussed the harbour’s potential in relation to offshore wind development and oil and gas decommissioning. Further north they heard ideas for the community owned Gills harbour development and met other HIE assisted businesses including Reids of Caithness, AGM Batteries and Denchi Power in Thurso.

In Shetland, Mr Paterson and Mr Crerar visited some important sites with the Shetland Amenity Trust before meeting local councillors to discuss economic development issues.

They also met with social enterprise Bridge End Outdoor Centre and the Shetland Arts Development Agency.

©2004 Scottish Parliamentary Corporate Body

KEEPING PARLIAMENT INFORMED November was a busy month for HIE giving evidence to Scottish Parliamentary Committees. We gave evidence to the Economy, Energy and Tourism Committee (EETC) on the Scottish Government’s draft 2015-2016 budget. The session was part of the Committee’s annual scrutiny of the Government’s budget. Alex Paterson, HIE Chief Executive, and Director of Finance and Corporate Services, Forbes Duthie, updated members on the organisation’s budgets and implementation of its Operating Plan for 2014-2017.

HIE’s Mark Tate, as Director of Community Broadband Scotland (CBS), gave further evidence on the Scottish Government’s budget, this time to the Infrastructure and Capital Investment (ICI) Committee. As part of the Digital Scotland Superfast Broadband (DSSB) programme, HIE administers the £7.5m CBS programme on behalf of a range of partners across the whole of Scotland. This is a key strand of the Scottish Government’s Digital Scotland world class 2020 vision.

The evidence session focused on reducing Scotland’s carbon emissions.

Given the Committee’s focus on exports this year, evidence on our work to support and grow Scotland’s exports and our ambition to be a global region were particularly relevant.

Rachael McCormack, HIE Director of Strengthening Communities, and Sandra Holmes, Head of Community Assets, gave evidence on the Community Empowerment Bill to the Local Government and Regeneration Committee (LGRC).

Ahead of the session, HIE provided an update to the EETC on actions taken since the Committee’s 2014-2015 budget report.

We also provided, along with Scottish Development International (SDI) and Scottish Enterprise, a joint submission on exporting.

More businesses and social enterprises were on the programme during a visit to Easter Ross. These included the Seaboard Memorial Hall, Kirker Europe in Invergordon, Shandwick Supply Co in Evanton, and Porex Technologies in Alness.

BUILDING OUR FUTURE | A’ TOGAIL ÀM RI TEACHD DHUINN

Sandra Holmes gave further evidence to The Rural Affairs, Climate Change and Environment Committee (RACCE) on community right to buy land.

WESTMINSTER On the 5 November HIE Chief Executive, Alex Paterson, and Chairman, Lorne Crerar, held their annual meeting with Highlands and Islands MPs. They discussed a range of issues relevant to the region including; Next Generation Broadband, renewable energy, the UK Spaceport, support for growing businesses and tourism. www.hie.co.uk

November/December 2014

KEY FACTS

Population of the Highlands and Islands is 467,328 (2013). This represents an increase of 7.7% since 2001 and compares to a 4.6% increase overall in Scotland.

Tha àireamh-sluaigh na Gàidhealtachd is na h-Eileanan aig 467,328(2013) – àrdachadh air 7.7% 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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Things you may not know about the Highlands and Islands Rudan inntinneach mun Ghàidhealtachd ‘s nan Eilean

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. (October 2014: Highlands and Islands 1.3%, Scotland 2.4%, UK 2.2%.).

Tha cìon-cosnaidh cunntais neach-tagraidh air a bhith tòrr nas lugha na ìre Alba agus RA air na cuid bliadhnaichean a dh’fhalbh. (An Dàmhair 2014: A’ Ghàidhealtachd is na h- Eileanan 1.3%, Alba 2.4%, RA 2.2%.)

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 £19,340 is around 10% lower than the equivalent for Scotland (2013).

Bha am pàigheadh bliadhnail de £19,340 airson a h-uile luchd-obrach sa Ghàidhealtachd is na h-Eileanan, timcheall air 10% nas lugha Alba gu lèir (2013).

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

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www.hie.co.uk

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.

Ambitious for Scotland Àrd-amasach airson Alba