Listen
Convention of the Highlands and Islands
26/10/2009
John Swinney today urged the Chancellor to allow the Scottish Government extra flexibility to help boost employment and investment in the Highlands and Islands.
Speaking at the Convention of the Highlands and Islands, the Finance Secretary said many projects, including schools projects and road reconstruction, were being taken forward in the region thanks to the Scottish Government's decision to accelerate capital spending.
But to build on the progress made to position the Highlands and Islands economy for recovery, Mr Swinney said it was essential that the Chancellor's upcoming Pre-Budget Report gave Scottish Ministers flexibility to undertake further capital acceleration into 2010-11.
Mr Swinney also welcomed news that Highlands and Islands Enterprise has approved a £1.12 million investment for the Argyll tourism sector, backed by a further £744,000 in European Structural Funds.
He said:
"The Scottish Government's economic recovery plan is supporting 15,000 jobs across Scotland. As part of this plan, we have supported the Highlands and Islands economy by accelerating over £12 million of capital spending.
"This has enabled projects such as school refurbishments and road reconstruction to be taken forward in the region earlier than planned, providing vital support for the construction industry in a challenging economic climate.
"Our message to the Chancellor is simple - by allowing us to undertake further capital acceleration in 2010-11 and reversing £500 million of proposed cuts in our budget, we can do even more to support economic recovery.
"While we cannot be complacent, today's announcement from Highlands and Islands Enterprise of support for Argyll tourism through approved investment in hotels in Machrihanish and Campbeltown, shows new projects are still going ahead and that there are reasons to be optimistic about Scotland's recovery."
Several Scottish Government Ministers are attending today's Convention of the Highlands and Islands at the Queen's Hall in Dunoon, including Mr Swinney, the Deputy First Minister Nicola Sturgeon, Education Secretary Fiona Hyslop and Transport Minister Stewart Stevenson. Representatives of local authorities, public bodies and economic development agencies in the Highlands and Islands will be in attendance.
Among the issues to be discussed is the Highlands and Islands economy. The Scottish Government's Economic Recovery Plan is focused on supporting jobs and communities, strengthening education and skills and investing in innovation and industries of the future.
Highlands and Islands Enterprise has today announced that a total of £7.4 million is set to be invested in redeveloping two Argyll hotels to provide high quality accommodation and facilities. The Ugadale Hotel in Machrihanish and the Royal Hotel in Campbeltown are both set to be restored by Southworth Development LLC of Boston, Massachusetts, through its subsidiary Kintyre Development. Funding of £1.12 million towards the project has been approved by Highlands and Islands Enterprise (HIE) with a further £744,000 committed from the European Regional Development Fund (ERDF).