Chamber and committees

The budget for 2002-03 was prior to the introduction of resource accounting and budgeting, arising from which a non-cash budget of £14 million per annum is included in each year''s figure above, from 2003-04 onwards. From 2008-09, Highlands and Islands Enterprise''s budget was reduced to reflect the refocusing of the organisation as part of this government''s reform of the enterprise networks, hence for that and subsequent years the figures are stated after budget transfers to Skills Development Scotland. Budget figures are not available beyond the spending review 2007, which allocated budgets up to 2010-11.

Highlands and Islands Enterprise should not be viewed in isolation however, as it is only one arm of the very significant package of funding we have in place to support and stimulate economic growth in the Highlands and Islands of Scotland.

Skills Development Scotland, the newly established business gateway for the area, the Road Equivalent Tariff Scheme and the Town Centre Regeneration Fund together bring a funding investment of £26.7 million this year, in addition to that allocated to Highlands and Islands Enterprise.

Businesses in the area also benefit from a range of non-domestic rates reliefs including the Small Business Bonus Scheme, which alone amounts to an estimated £14.4 million in 2009-10, Rural Rate Relief and Empty Property Relief.

I have written to HIE''s Chief Executive, Sandy Cumming, asking him to respond to you directly on this issue.

I have written to HIE''s Chief Executive, Sandy Cumming, asking him to respond to you directly on this issue.

The Small Business Rates Relief Scheme:

The Small Business Rate Relief Scheme was replaced in 2008-09 with the Small Business Bonus Scheme (SBBS). The two schemes have a number of key differences and are not directly comparable in terms of costs.

The level of assistance SBBS provides is more generous and offers business rates relief of up to 100 per cent on business (non-domestic) rates to small businesses, while the former scheme offered relief of up to 50 per cent. Costs of both schemes depend on a range of factors, such as take-up of the scheme and number and nature of business properties.

Notes:

1. 2007-08 Non-Domestic Rate Income Audited return.

2. 2008-09 Non-Domestic Rate Income Mid-Year Estimate return.

3. 2009-10 Non-Domestic Rate Income Provisional Contributable Amount return.

Skills Development Scotland (SDS):

SDS did not exist in 2007-08. Funding for 2008-09 and 2009-10 is as follows:

Business Gateway:

The Business Gateway (BG) did not operate in the Highlands and Islands prior to 1 April 2009. Information on the funding allocations for the local delivery of the BG throughout Scotland is an operational matter for local authorities.

Campbeltown-Ballycastle Ferry:

Note: No decision has yet been on the introduction of this service.

Road Equivalent Tariff:

Note: The figures given above are the allocations as given in the 2007-08 spring Budget Revision of January 2008 and do not necessarily represent sums actually spent.

Scottish Co-investment Fund, Scottish Venture Fund, Scottish Seed Fund:

The Scottish Government has not directly allocated funding for the Scottish Co-investment Fund, the Scottish Venture Fund or the Scottish Seed Fund to be spent in the Highlands and Islands area in the period 2007-08 to 2009-10. However, under these schemes, which are administered by Scottish Enterprise, there have been investments in companies based in the Highlands and Islands area. Information on this activity is an operational matter for Scottish Enterprise.

I will write to the chief executive of Scottish Enterprise asking him to provide you with this information.

Rather than having a negative impact on the economy, the reforms will enable it to maximise its contribution to economic recovery and growth by focusing more clearly on those activities likely to have the greatest economic impact on economic recovery and increased sustainable economic growth.

I have written to HIE''s Chief Executive, Sandy Cumming, asking him to respond to you directly on this issue, providing further detail of these indicators.

Rather than having a negative impact on the economy, the reforms will enable it to maximise its contribution to economic recovery and growth by focusing more clearly on those activities likely to have the greatest economic impact on economic recovery and increased sustainable economic growth.

Highlands and Islands Enterprise continues to focus its interventions on selected account managed businesses and anticipate that many of these will benefit from opportunities arising from the Pentland Firth. The scale of the development of the Pentland Firth is such that the intervention of public funds will only be a small part of the total investment required. Highlands and Islands Enterprise is, therefore, prioritising its resources to ensure the most effective leverage of private funds.

However, I am able to confirm from information provided by these bodies that, at the present time, HIE account manages around 330 businesses and social enterprises and that, in the rest of Scotland, Scottish Enterprise (SE) account manages around 2,130 businesses. These figures are, however, dynamic and only reflect those businesses and social enterprises which, at this particular time, HIE and SE have identified as significant, growth or high growth entities; where HIE or SE intervention is needed and can make a difference and where productive relationships have been established. In HIE''s case, it aims to build a total of around 500 account managed businesses and social enterprises towards which it can target intervention and maximise its impact.