Established to tackle the Highland Problem, and turn around the fortunes of a region that had been steadily declining for more than a century, HIDB took on the challenge with ambition and optimism. Blending the need to make impact quickly and taking a longer-term view, the story of our region unfolds…
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A SOLUTION TO 'THE HIGHLAND PROBLEM'
Land, and who owns it, is at the forefront of the debate. An organisation with the power to acquire land is needed, to improve the social and economic future of the Highlands and allow the area to play a wider role in the UK economy.
The Highlands and Islands Development (Scotland) Act is passed by Harold Wilson’s Labour government. On November 1st, just six staff open the doors of the Highlands and Islands Development Board (HIDB).
The HIDB is chaired by Professor Robert Grieve, one of Scotland’s leading post-war planners, and will cover the traditional crofting counties of the Highlands, from Argyll to Zetland.
The role of the Board is set out in the document below:
Download the Constitution, Functions and Administration of the HIDB
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A new dawn for energy
Board members meet with Minister of Technology, Rt Hon Frank Cousins MP, to discuss the case for siting a prototype reactor at Dounreay.
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Retaining the population and increasing job opportunities are key issues for the young HIDB, which is growing fast: from 5 employees to 42 across staff groups including Management Services, Planning and Research, and Information and Projects.
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The HIDB identifies Forestry, Tourism and Manufacturing as the three main hopes for a more secure economy - manufacturing is the most urgent. A policy is introduced to encourage the growth of industrial enterprise, capitalising on the natural advantages offered by different areas.
This includes maximising the benefits to be derived from the recent establishment of the Corpach Pulp and Paper Mill in Lochaber. They also begin discussions with the Occidental Petroleum Corporation of Los Angeles about a possible petrochemical complex in Invergordon.
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A study is commisioned to explore the feasibility of major industrial development in the inner Moray Firth. It concludes that major population growth is possible over the next 20 years in this area. The Board outlines its large-scale aspirations for Moray Firth development, describing it as "a regional development scheme with an industrial base". By the end of the year, a special team is set up to pursue these ambitions.
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Recognising the need to build capacity in the region, and to respond quickly to the needs of potential investors and industrialists, the Board considers an advance sites and factories programme. This marks the start of a long history of property development to stimulate business growth.
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Young people are at the forefront of the HIDB’s work and, in their first annual report, they acknowledge the work done by Inverliever Lodge Trust to bring young people from urban areas to the Highlands, potentially encouraging them to see the area as a future place to live. The Board commissions a report to gain further insights into a potential youth agenda.
See HIDB's first Annual Report 1966
See Youth Activities in the Highlands and Islands report 1966
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The HIDB quickly recognises the critical role that transport infrastructure has to play in supporting economic development. This resonates with political thinking, reflected in the presentation to Parliament of a White Paper on the Scottish Economy ‘A Plan for Expansion’.
The paper outlines plans for investment in motorways and trunk roads across Scotland, including upgrades to the A82 and A9. It endorses the Inner Moray Firth as an area with substantial development potential.
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Welcoming the Fleet
The Secretary of State approves the HIDB Fisheries Development Scheme. 25 fishing boats are to be built for new entrants to the industry over the next five years, at an estimated cost of £750,000. The scheme covers the whole of the HIDB area, but is mainly directed at increasing the local fleet fishing out of Stornoway. By the end of 1966, 26 applications are received and nine successfully selected for boats.
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Lack of visitor accommodation is a constraint to growth, so the Board's first major tourism proposal is a hotel build scheme, to provide five new hotels in the islands and west mainland. At a total build cost of about £1m, each hotel should accommodate around 100 guests. The hotels will be leased to commercial operators, on the basis of market value.
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The Agriculture Act 1967 is passed and gives the HIDB new powers to transfer land from forestry to agriculture, and to restructure it into more viable units, offering greater scope for development.
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Only 10% of the population work in manufacturing, and the board acts to diversify job opportunities. Afocal Optical, a Glasgow based company, sets up a factory in Barra. A heating and ventilation engineering firm, Binder Engineering Ltd, relocates their plant from Swindon to Campbeltown, and a new factory is built in Kingussie for Rotary Precision Ltd who operate in the engineering and aerospace industries.
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Industrial development is nothing without employee housing. When Ross and Cromarty County Council rezones 700 acres at Inverbreakie and Ord Farms for industrial use, the board takes a forward thinking, holistic approach, collaborating with local authorities and housing associations to meet workers' housing needs, even in remote areas.
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To ensure an appropriate skills focus, a joint committee of industrial training boards is set up specifically for the Highlands and Islands.
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The planning stages of industrial development begin. The Jack Holmes Planning Group is commissioned to prepare a plan for the inner Moray Firth area, along with a more detailed study of the Cromarty Firth and Invergordon.
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Bringing communities together
Economic development is progressing at a lightning pace, but the HIDB recognises that it also has an important social role to play.
Having noted that none of the staff were employed to address the HIDB’s social role, Bob Storey, former Development Officer for Zetland County Council, is employed as a consultant on community development and sociological aspects of development.
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The HIDB continues to expand - by the end of the year there are 147 staff across nine divisions, and the first area office opens in Shetland, providing aftercare services for Board assisted projects.
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The social and cultural development of the region is beginning to flourish. Grants totalling £74,000 are approved for 77 organisations, more than treble the sum approved in 1967.
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Manufacturing development is forging ahead. Now 1 in 3 new jobs in the region are in manufacturing and growth industries are identified - Electronics and Industrial Plastics. The Board encourages two major engineering and plastics companies to relocate to Inverness from England. Elsewhere, Afocal Optical, who were established in Barra, expand and move to Campbeltown, providing 60 jobs.
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The board welcomes the decision to locate a new aluminium reduction plant at Invergordon, creating 600 jobs. Grampian Chemicals apply for planning permission to build a petrochemical complex nearby.
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a brave new plan for transport
The HIDB submits proposals for an innovative new transport policy for the islands, based on the idea that water crossings should be treated as extensions to mainland roads. These are the first formal proposals on Road Equivalent Tarriff (RET).
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Rolling in the deep
The first roll-on roll-off ferry service in Scotland is introduced by Western Ferries between Kennacraig and Islay. Their introduction to the ferry fleet brings real efficiencies in loading and unloading, impacting positively on journey times and facilitating more effective timetabling.
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Now 40% of employment created by HIDB investment is in manufacturing, though the sector as a whole is still under-represented in the regional economy, employing just 12% of the working age population.
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The Board demonstrates early belief in the concept of ‘inclusive growth’. Rather than limiting its focus on areas with the greatest potential for industrial development, it aims to extend its reach and help a variety of businesses, both large and small. Modern science-based units and innovative new small industries are encouraged.
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BUILDING AN INDUSTRIAL FUTURE
Work begins to create an exciting new industrial landscape for the Highlands. Construction of the new aluminium reduction plant at Invergordon is well advanced, with over 1000 workers employed on the project. Housing to accommodate workers is being built in Alness - the latest estimate is that 2,500 new houses are required by 1974.
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First HIDB commercial promoting the Highlands and Islands
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Striking oil in the Forties
The Forties oil field is discovered by British Petroleum, now called BP, located 110 miles east of Aberdeen. The site is considered the largest oil field in the North Sea.
The discovery triggers the birth of the wider offshore industry in the region, and attracts a stampede of future oil explorers from around the world.
Forties was initially spread over 93km² and involved the installation of four fixed steel platforms. It was brought into production in September 1975 and oil output peaked at 520,000 barrels per day in 1978, meeting 25% of the country's demand for oil at that time.
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EQUAL EMPLOYMENT FOR WOMEN
The Board recognises that women represent a vital part of the labour market and are currently under-employed in the region, compared to the rest of Scotland. A promotional campaign is launched to raise awareness of the potential of women in the workforce.
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Industrial competition is hotting up in the UK, so the HIDB responds by strengthening its marketing. Promotional films are produced: Spey Valley – Ski Valley and The Top Country. The Board now offers a development service that is unique in Britain. They deal with everything from factory unit provision and financial assistance to management, transport, marketing advice and recruitment help.
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This year focus shifts to nurturing existing businesses to promote further growth, and to more targeted inward investment with the aim of attracting suitable industries into the region.
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The second Chairman is appointed - Sir Andrew Gilchrist, former British Ambassador to Iceland, who describes the HIDB as “a merchant bank with a social purpose: our successes become part of the way of life of the people and are much less easy to quantify”.
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The Board constructs a factory at Dalcross industrial estate, near Inverness, using its land acquisition powers to do so. The purpose built unit is for Markon Engineering (Scotland), who have relocated to the region from Rutland. Their pace of growth has been rapid, and they anticipate trebling their output on moving into their new premises.
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HARNESSING PEOPLE POWER
Industrial development has stabilised the population, with growth in urban areas offsetting decline in rural areas. This gives the Highlands real hope for the future - instead of migration to other parts of the UK, economic growth is keeping people in the region.
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In UK politics, the Conservatives, under the leadership of Edward Heath, displace the Labour administration in the General Election.
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Supporting small businesses
Craft is a traditional part of life in the Highlands and Islands and the HIDB also sees it as a way to grow local economies in some of the most remote and rural parts of the region. In places where attracting larger industries is more challenging, the Board focuses on developing craft enterprises.
There are plans to build a new factory for a silversmith in Shetland, and 20 jobs are created at a pottery in Aviemore. Other craft enterprises supported by the Board are Ortak in Orkney, a tapestry business in Conon Bridge, and a postcard printing family business in Coll, part-owned by Mairi Hedderwick, who would later write the celebrated children's book Katie Morag.
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supporting investment in oil
The start of oil-related activity in the Highlands and Islands is a massive boost for the regional economy. The Board starts building a mutually beneficial relationship with all oil companies setting up exploration in the northern sector of the North Sea. Both large scale heavy engineering construction work and support services for offshore operations could create significant employment opportunities in the region.
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The HIDB helps to finance the operations of the Committee for European Investment in Scotland, hoping that the region will eventually benefit from overseas investment.
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THE HIGHLANDS ON FILM
“Highlands" is produced by Ogam Films, sponsored jointly by the Board and the British Aluminium Company. This half hour film, showcasing the region’s industrial growth, is directed by renowned photographer Oscar Marzaroli and edited by a young Bill Forsyth. A year later, it wins a prize at the Golden Mercury International Film Festival in Venice.
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CENSUS SUCCESS
The census results show that the HIDB’s population policy is working. The population in the Moray Firth area has risen by over 5,000 since 1966; a level approaching that achieved over 45 years previously.
3,700 more people have moved to the area since 1966 than have left, mostly thanks to industrial development in Invergordon.
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The Board's hotel build scheme comes to fruition, as they open their first hotel in Craignure on the Isle of Mull.
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Broader Scope for Skiing
The Secretary of State for Scotland transfers ownership of the upper slopes of the Cairngorm Estate from the Forestry Commission to the HIDB. This pioneering decision gives the Board broader scope to develop the winter sports industry in Scotland.
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The HIDB considers the effects of the UK’s entry into the Common Market. It also states the need to attract more industrial development, leading to innovative jobs that will retain well-qualified young people in the region.
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The refrigeration company Norfost, which manufactures white goods, opens a factory in Thurso. It goes on to operate on a global scale, and in the 80s receives national recognition for industrial achievement.
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Employment at the Nigg Highland Fabricators yard rises to 1,500 workers. The rapid build-up of highly paid manual employment in the Inner Moray Firth has wide repercussions, including scarcity of labour in many areas, and a shortage of housing. A Moray Firth Working Party is set up by the Scottish Office to co-ordinate and monitor progress in the provision of housing and infrastructure for oil and other developments.
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The UK enters the EEC along with Ireland and Denmark, providing businesses with access to bigger markets and improved opportunities for international trade.
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The Board considers the outlook for the region and highlights its most important assets to the UK and Europe. The region boasts an exploitation base for North Sea oil, along with the only land-adjacent, high productivity fishery grounds among the Common Market countries and the largest, most unspoiled area in Europe for tourism.
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The Local Government (Scotland) Act 1973 is passed. It reforms local government into a two-tier system of Regions and Unitary authorities on Islands.
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A focus on social economic development
After some years of focus on bringing lucrative manufacturing to the region, the Board’s social role is under scrutiny, and an expanded budget for ‘non-economic’ grants is approved. The budget also includes support for Gaelic.
'Two Men of Tiree', filmed in 1974 demonstrates how the Board has put its social support into practice. -
This year sees two UK General Elections. The first in February sees Labour form a minority government under Harold Wilson, although they secure an outright majority in October.
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A 3 day working week is enforced by the Government to regulate energy consumption and preserve fuel reserves in the wake of the 1973 oil crisis which has driven up the price of coal. This is further impacted by the Miner's strike. Despite this, the area sees population increase and unemployment fall.
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10 YEARS OF ECONOMIC CHANGE
By its 10th year of operation, the Board had offered financial help for 3,437 projects and matched around £34m of private funds since 1965. Its early aims to sustain and grow the population have also come to fruition as the population increases.
The impact of the 1973 double dip recession has a noticeable impact on industry in the region. There is a fall in inward investment enquiries, plus an increase in vacant factories and workshops, and a number of firms close, particularly in the Inner Moray Firth area. However, the impact is cushioned by the demand for labour at the major fabrication yards for the offshore oil industry, particularly at Ardersier, Nigg and Kishorn. The total estimated number of oil-related jobs in the region rises from about 5,700 to 8,100.
It was also a year of ‘firsts’. The first American firm not to be involved in the offshore oil industry establishes a factory in the region. The first overseas marketing mission also takes place, as the board and 11 firms from the area visit Toronto and New York. Finally, a new food ‘mark’ is introduced, certifying authentic produce from the Highlands and Islands.
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The Board commissions a study to explore the economic and social effects of centralised education on rural areas. This is in response to growing parental concerns about the impact on school pupils of having to leave their homes to access comprehensive seconday education (which was introduced in Scotland in 1965). The study is especially keen to explore the extent to which level and location of education impacts on out-migration. It concludes that the expections and aspirations of parents and pupils are influenced by a broader range of social and economic factors, but that pupils have an early expectation of the need to leave their local communities to access job opportunities.
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The HIDB area is expanded to include the district of Nairn, the former Burgh of Grantown-on-Spey, the former district of Cromdale and the islands of Arran and Bute.
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The UK electorate votes YES in a referendum for the UK to remain in EEC.
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Recognising the need to embrace emerging technology, a computer unit is installed in the HIDB Inverness office to process the increasing volume of financial data and statistical information.
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The Scottish Development Agency is launched - a precursor to Scottish Enterprise.
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Local government reorganisation, in the wake of the Local Government (Scotland) Act 1973, leads to major investment in housing and other local infrastructure provision. This is felt across the region and is hailed as a stimulus for growth.
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A patent from Unilever for a new process to transfer young salmon (smolts) directly into the sea, is contested by the HIDB. The Board argues that the process could constrain the development of the aquaculture sector in the region. Following a period of drawn-out challenge, Unilever sells the patent to the Board for £1 in the mid-70s.
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BRINGING POWER TO RURAL COMMUNITIES
The HIDB engages in discussions with the North of Scotland Hydro-Electric Board (NSHEB) about their policy and future programme for providing electricity to small rural communities. Given geographical separation from distribution lines and the high costs involved, it is clear that some small communities will not be connected to the Hydro Board grid, and the HIDB investigate potential solutions. Schemes for Colonsay and North Ronaldsay, the two largest of the communities affected, are considered by the Board, in technical liaison with NSHEB and the Army.
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a fast new route to the city
The Ballachulish bridge opens, linking the villages of North and South Ballachulish on either side of Loch Leven. The 0.29km bridge reduces journey time from Fort William to Glasgow by around 30 minutes.
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Under the new chairman, leading economist Professor Kenneth Alexander, the board’s focus is on fresh development opportunities. Industrial fishing off the North-West coast, fish processing in Lewis, expansion of fish farming, deer farming, an oil refinery in the Cromarty Firth and a strategy for land use are all on the agenda.
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A second area office opens in Stornoway - a local centre for the processing of applications for financial assistance and aftercare services. The board plans more area offices to increase contact with more remote populations.
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The Board provides evidence to the House of Commons Select Committee on the impact of the EEC Regional Development Fund on the Highlands and Islands. They emphasise that funds should be given on top of aid that is normally available for the UK.
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First North Sea oil to be landed in an HIDB area comes ashore at Flotta from the Piper Field.
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The HIDB focuses efforts on the region's 'fragile areas' - places with little employment or economic growth. These include islands such as Islay and Jura, and work begins to study what particular problems isolated island communities are facing.
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The Co-Chomunn Scheme
Having met with the development agency at the Irish Gaeltacht and heard more about their work managing a wide range of community development, the Board is inspired to launch a co-operative, or Co-chomunn, scheme, offering information and financial aid for the establishment of community co-operatives, initially in the Western Isles.
The conditions for funding will depend on sound programmes of action, and the Board will match fund local funds and provide financial support for co-operative managers for the first few years. Four co-operatives are set up the following year in Ness, Pairc, Eriskay and Vatersay, all in the Outer Hebrides.
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The Complete Package
The Board takes a holistic approach to the development of the fishing sector and opens a specialised factory in Breasclete on the Isle of Lewis to dry blue whiting for sale to emerging markets. Alongside this, is the opening of Breasclete pier, constructed by the HIDB to support this area of activity.
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A further extension order is granted to add Great and Little Cumbrae to the HIDB area.
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A referendum is held on Scottish Devolution. The Labour Government stipulates that a Scottish Assembly will be formed if the referendum is supported by 50% of the vote. Although 51.6% vote in favour, it represents 32.9% of the electorate, so the Assembly is not formed.
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Further consideration is given to the concept of RET (Road Equivalent Tarriff), highlighting the difficulties of creating a transport policy for the region. The Government publish a review on RET and launch a consultation.
See the HIDB response to the Scottish Office consultation here.
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The Conservatives assume power in this year's General Election, starting an 18 year term of power, 11 of which are under the leadership of Margaret Thatcher, and the remainder under John Major.
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Start of 1980-82 recession due to the tightening of monetary and fiscal policy to reduce inflation.
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NEW ERA FOR WESTERN ISLES
The board proposes an EEC backed Integrated Development Plan (IDP) for the Western Isles. It's the first European funded financial programme to deliver tangible benefits to remote communities in the region, creating local markets and having a high degree of local control. Communities are keen to become involved, and the plan would stimulate community awareness and individual enterprise.
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The British Aluminium smelter at Invergordon closes at the end of the year, in the wake of the pulp mill closure at Corpach the previous year.
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Following Rear Admiral David Dunbar-Nasmith's one year appointment, the Board's fifth chairman is international business consultant Robert Cowan. He is the last and longest serving chairman of the HIDB.
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a link to the black isle
The Kessock Bridge opens across the Beauly Firth, linking Inverness with North Kessock on the Black Isle. It is the second and most southerly of the "Three Firths" crossings transforming road connectivity in the Highlands. Replacing the Kessock Ferry with its limited vehicle capacity, or a 20 mile drive via Beauly, the opening of the bridge significantly reduces journey times between Inverness (and the rest of Scotland) and the far north.
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GENERATING COMMUNITY ENERGY
This year sees communities working together in a powerful way, with HIDB investing in the UK's first community based wind power scheme. This pioneering project takes place on Fair Isle, Shetland, and not only harnesses the natural resources of the region, but puts local people firmly in charge of their energy costs.
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Following the closure of the British Aluminium smelter at Invergordon, an Enterprise Zone is created for Invergordon and Alness with special 10 year taxation and planning status.
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HIDB’s property portfolio exceeds 300 factory and workshop units for first time. The largest of these is a factory for Highland Forest Products Ltd at Dalcross.
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The Tourism (Overseas Promotion) (Scotland) Act 1984 provides authority for the Board to start marketing Scotland’s attractions internationally.
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INDUSTRY GROWTH COMES NATURALLY
The Norbord Plant is established at Dalcross in Inverness.
The Inverness mill is the first in Europe to manufacture orientated strand board (OSB), a particle board made from woodchips and used in the building trade. The process uses small roundwood which is plentiful in the region.
This plant is also the first OSB plant in Europe to receive Forestry Stewardship Council accreditation, demonstrating its commitment to the environment and sustainable forestry practices.
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Investing in aquaculture
Total investment by the HIDB in fish farming since 1965 reaches £23.8m (1985 prices).
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The HIDB boundary is further extended to include Forres and Upper Moray. This area consists of the parishes of Aberlour, Cabrach, Dallas, Dyke, Edinkillie, Forres, Inveravon, Kinloss, Kirkmichael, Knockando, Mortlach, Rathford and Rothes.
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The Skye Development Programme is launched, following the success of Western Isles IDP, helping remote communities create new business.
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Glensanda Superquarry begins operation on the Morvern peninsula on the shores of Loch Linnhe, and the first shipload of granite is transported to Texas. The quarry is developed by Foster Yeoman in response to a UK Government report, which identified a shortage of aggregates for building. It proposed the idea of a superquarry, situated in a remote location, from which stone could be exported by sea. This project creates well-paid jobs in a remote area, with around 160 employees either living on site or commuting by boat from Barcaldine, near Oban.
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a warmer shetland
A community electricity scheme is constructed on the island of Foula, Shetland which is not connected to any mainland electricity grid system. It comprises a 3.3kV island grid linking diesel generators, a wind turbine and a hydroelectricity scheme to the island’s properties.
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The first Policy and Financial Management Review of HIDB takes place, conducted by the Treasury and Scottish Office. It gives a glowing endorsement of the Board’s effectiveness in stimulating economic growth and revitalising the region.
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The Highlands and Islands is one of four areas in Britain, and 73 in the EU to qualify for Objective 5(b) European assistance. This is a major region-wide programme, which aims for a more flexible approach to rural development.
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the final days of dounreay
Staffing numbers are reduced from 1989 as the Government decides to wind down the Fast Breeder Reactor programme at Dounreay. A Caithness Project Team is set up to address the employment rundown.
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NEW COMMUNICATIONS
Communication is always an issue for remote areas, and the HIDB makes its largest single investment to date - the ground-breaking Highlands and Islands Telecommunications Initiative. They invest £4.9m towards a £16.2m programme by BT to roll-out ISDN, including the upgrading of 43 telephone exchanges across the area. This pioneering project would go on to pave the way for broadband and transform communications for some of the UK’s most remote areas.
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A two year recession begins, mainly caused by higher interest rates, in an attempt to reduce inflation caused by fast growth in the late 1980s.
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WORKING TOWARDS AN ENTERPRISING FUTURE
Both the HIDB and the Scottish Development Agency are dissolved, following the Enterprise and New Towns (Scotland) Act 1990. The former HIDB is merged with the Training Agency to form Highlands and Islands Enterprise (HIE), with Iain Robertson, appointed as Chief Executive in 1990, at the helm. The network of area offices is replaced with 10 Local Enterprise Companies, each with their own CEO.
This is a time of fundamental change, marking a geographical shift in focus, devolving decision making and budget control to local agencies.
Scottish Enterprise is also established as a result of this legislation.
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Redland Aggregates applies to Western Isles Council for planning permission for a £70 million superquarry at Lingerbay in Harris. As it will create jobs for a fragile economy, HIE is initially supportive and take part in the planning enquiry. However, opposition from local residents and a drawn out legal battle eventually lead to the company abandoning the project 13 years later.
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Landing a victory for highland communities
The North Lochinver Estate is purchased by the Assynt Crofters Trust for £300,000. This is the first in a new era of community land buy outs in the Highlands and Islands, paving the way for community land ownership and development.
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The European Union is formally established as the Maastricht Treaty takes effect, paving the way for monetary union and including a chapter on social policy. The UK negotiates an opt out on both. This changes the landscape of Europe, giving Europeans the right to live and vote in elections in any EU country, and fostering co-operation in foreign affairs, security, asylum and immigration.
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HIE and partners secure European Objective 1 status for the Highlands and Islands. This brings 311m ECU (European Currency Unit) of funding to the region between 1994 and 1999, and includes scope to invest in infrastructure.
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Dounreay's Fast Prototype Reactor closes, and the nuclear power plant enters a decommissioning phase. The staged closure of the nuclear plant requires specialist skills.
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The Local Government (Scotland) Act 1994 establishes 32 local authorities based on the regions/districts determined in the 1973 Act.
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HIE is proud to be awarded Investors in People status.
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The Convention of the Highlands and Islands is established, with political and public sector representation. It is a forum for discussions on the regional economy, encouraging the exchange of ideas, strengthening co-ordination of activity, and ensuring development policies are truly effective and sustainable.
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Forging Ahead with Healthcare
HIE secures major inward investment to the region with the establishment of Inverness Medical Ltd as the UK subsidiary of Selfcare, Inc - a medical device company headquartered in Boston, USA. The Inverness operation begins trading with 45 staff and focuses on the development and manufacture of glucose test strips, and the design of electronic meters for the world diabetes market.
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Since their conception, the HIDB and HIE have become known for their visionary decisions, and a willingness to take risks and create opportunities. This year, they acquire Orbost Estate in Skye. They hope to develop the estate for the benefit of the local community on Skye, creating new homes and smallholdings.
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The Conservatives' long term of power finally ends, with Labour wining the UK General Election under the leadership of Tony Blair.
A Scottish referendum takes place, to establish whether there is support for the creation of a Scottish Parliament with devolved powers, and whether the Parliament should have tax-varying powers. There is a Yes-Yes result leading to the passing of the The Scotland Act 1998, which enables the establishment of a Scottish Parliament.
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POWER TO THE PEOPLE
Over 30 years after the ‘Highland Problem’ was first identified, the first legislation enabling community ownership of land is passed – The Transfer of Crofting Estates (Scotland) Act 1997. This has the potential to give communities more autonomy than ever before.
Brian Wilson, the Minister of State, announces that HIE will set up a dedicated Community Land Unit to support community land ownership.
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A Scottish Parliament
The first Scottish Parliament Elections take place, with devolved powers transferring from the UK Government on 1 July. A Labour-Liberal Democrat coalition government is established, with Donald Dewar as Scotland's very first First Minister.
Devolved matters include: agriculture, forestry and fisheries; education and training; housing; local government; sport and the arts; tourism and economic development; and many aspects of transport.
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The 2000-2006 EU Objective 1 Programme brings €308m EU funding to the Highlands and Islands.
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Inverness gains city status
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HIE joins Scottish Natural Heritage (SNH) to launch the Highlands and Islands Access Strategy. This will increase access to the countryside for everyone.
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Alexander "Sandy" Cumming is appointed as HIE Chief Executive.
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Local manufacturing takes a blow with the closure of the aluminium smelter in Kinlochleven, with the loss of around 96 jobs. HIE helps to establish a multi-agency and community forum to address the regeneration of the area.
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Big Business comes to forres
A major new telecoms business centre, operated by CapGemini Ernst and Young (later Vertex, now Capita), opens at Forres Enterprise Park. Within a year, it employs an impressive 850 local people.
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MAKING RURAL HEALTH A PRIORITY
The University of Aberdeen establishes The Centre for Rural Health in Inverness to advance knowledge of health, and health services, in rural and remote communities. The centre later forms a joint venture with the University of the Highlands and Islands.
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‘A Smart Successful Scotland’ is published by the Scottish Executive, outlining their ambitions for the Enterprise Networks. The following year, HIE publishes A Smart Successful Scotland: A Highlands and Islands Dimension.
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Following the Government’s national review of the enterprise networks, local economic forums (LEFs) are established in all LEC areas in the Highlands and Islands. They are tasked with developing local economic strategies, to enhance business development services in their area.
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Global connections are important for HIE in the new millennium. This strategic objective goes hand in hand with long standing objectives of strengthening local communities, developing skills and growing businesses in the region.
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On Benbecula, HIE opens a new data centre, Taigh Cheann, a'Locha at Lionacleit. A team of 20 staff provide financial administration services for the whole HIE network. Thanks to their successful bid to run the National Lottery’s Scottish Land Fund, HIE also opens an office in Auchtertyre, creating jobs in Lochalsh.
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The HIE boundary is extended to include all of the Moray council area.
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The region is changing as HIE welcomes the ICT sector, including companies like BT/Manpower, Cap Gemini, and call centres (which have provided 2000 new jobs). They also work hard to expand manufacturing.
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National Lottery’s Scottish Land Fund
The National Lottery’s Scottish Land Fund is established and HIE is given responsibility for administering this £15m Scotland-wide grant programme.
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The UK's Highest Railway
The Cairngorm Mountain Railway, built and owned by HIE, is opened. This unique experience takes visitors 3,500 feet up the mountain to the Ptarmigan restaurant and viewing terrace. Not only is it the only funicular railway in Scotland, it is also the highest railway in the UK.
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HIE relocates to new offices at Cowan House, on the outskirts of Inverness. It is joined in April by staff from the new national all-age careers service, Careers Scotland, which is being set up within the enterprise agencies.
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Island Connections
A vehicle ferry service is launched between the islands of Eriskay and Barra, following on from the completion of new ferry terminals on each of the islands. The service is initially delivered by the Comhairle's own four car ferry, Eilean na h-Oige, with Cal-Mac taking over the route with a larger vessel the following year. This marks the completion of the local authority's Sound of Barra Integrated Transport Project. It also sees the completion of the Western Isles Spinal Route, which enables motorists, for the first time in history, to drive from the Butt of Lewis to Barra in one day.
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GETTING AHEAD WITH SOCIAL ENTERPRISE
In keeping with the HIDB’s commitment to social issues, and long before social enterprise became popular, the Highlands and Islands Social Enterprise Zone (HISEZ) is created as a partnership of HIE, Social Firms Scotland and Communities Scotland, with funding from the European Union. Its purpose is to support existing and aspiring social enterprises in the Highlands and Islands.
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generating the world's first floating wave energy
Opening of the £5m Phase One of the European Marine Energy Centre (EMEC) in Orkney, a fully grid connected wave and tidal test centre developed by a HIE-led UK consortium. Its Billia Croo wave test site becomes the world’s first floating wave energy device to generate electricity to the national grid.
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In May, 10 new member states enter the EU. As a result, the Highlands and Islands finds itself reduce from a high priority region to a 'statistical effect' area. This means that from 2007, the area could receive a lower level of funding. After some negotiation, the region, along with others similarly affected, is awarded a proportion of what it would have received, had it still been classified as a high priority region.
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In November, the Deputy First Minister launches an updated version of ‘A Smart, Successful Scotland’. This is the Scottish Executive’s strategic direction for the country’s two enterprise networks, and an enterprise strategy for Scotland as a whole. The following summer, A Smart Successful Highlands and Islands is published, following an extensive consultation with the public, local businesses and HIE partners.
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A centre for marine technology
European Centre for Marine Biotechnology opens in Argyll. The new centre offers business incubators for 'start up' and established companies and aims to create a growing marine biotech cluster.
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Equal respect for Gaelic
The Gaelic Language (Scotland) Act 2005 is passed by the Scottish Parliament, and seeks to secure the status of Gaelic as an official language of Scotland commanding equal respect to the English language.
The Act establishes Bòrd na Gàidhlig as a public body, and it sets up its headquarters in Inverness. Bòrd na Gàidhlig is tasked with increasing the numbers of Gaelic speakers, encouraging its use and understanding, and facilitating access to the Gaelic language and culture across Scotland and beyond.
The Act also stipulates that Bòrd na Gàidhlig prepares a National Gaelic Language Plan every five years, and provides the the Bòrd with the authority to ask public bodies to prepare and implement Gaelic language plans.
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MIT Industrial Liaison Program
HIE establishes a strategic relationship with the Massachusetts Institute of Technology (MIT). As part of this relationship, HIE are members of the MIT Industrial Liaison Program (ILP), providing HIE and some of its supported businesses, with access to people, departments, projects, technologies, knowledge and events at MIT.
MIT engagement forms an important component of HIE's entrepreneurship support programme, designed to support innovators in the region to develop and grow world class businesses.
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GROWING BETTER COMMUNITIES
HIE secures responsibility for administering the Big Lottery’s Growing Community Assets Programme. This replaces the National Lottery's Land Fund, and will distribute £50m over 3 years to both urban and rural communities.
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Science for better health
The Centre for Health Science is established on a 2.3ha site adjacent to Raigmore Hospital in Inverness, with the completion of phase 1 of the project. The Centre brings together research, education, training, patient care and business development all under one roof.
The Centre now forms part of the life sciences cluster at Inverness Campus.
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The Scottish National Party, with Alex Salmond as First Minister, establishes a minority administration at Holyrood.
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A single purpose
The Scottish Government announces major reforms to HIE and Scottish Enterprise, following its enterprise networks review. The changes are intended to make both organisations more clearly focussed on sustainable economic growth, and more responsive to the needs of businesses.
The Government Economic Strategy is published, representing a fresh approach for Scotland. Both central government and the public sector will focus on increasing sustainable economic growth. Five strategic objectives are outlined, mapping a Scotland that is: wealthier and fairer; smarter; healthier; safer and stronger; and greener.
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The Highlands and Islands is designated as a Covergence region for EU funds and benefits from €174m of European Union Structural funds.
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Government reforms to HIE and SE are implemented. Local Enterprise Companies are integrated into HIE, and with the emphasis on sustainable economic growth comes an “account management’ approach, which means the delivery of support to business, communities and social enterprises will be more targeted.
Skills Development Scotland is established, with 150 staff transferring from HIE. Business Gateway transfers services over to Local Authorities, and HIE is streamlined, reducing staff numbers to 350. HIE then launches a seven point economic recovery plan, following the Scottish Government’s new strategy for Scotland.
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The Global credit crunch of 2007 leads to a lengthy period of general economic decline in world markets, becoming known as "The Great Recession".
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The Lisbon Treaty comes into force, reforming many aspects of the EU, including its legal structure.
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HIE publishes its first organisational Gaelic Plan. This is also the first Gaelic Plan of its kind published in Scotland.
HIE illustrates its commitment to the development and promotion of a bilingual Highlands and Islands by seeking to enhance the visibility and use of the language in its activities and services. This includes using Gaelic in its marketing, publications and website. The plan also focuses on promoting the business benefits of Gaelic in its sectoral work, particularly in the creative industries, and in the tourism sector.
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CREATING A LEARNING ENVIRONMENT
HIE agrees to invest up to £25 million to start phase one at the Inverness Campus Beechwood site. The money will be used for site servicing works over the next five years, creating access, transport links and essential services, within an attractive parkland landscape.
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As part of its remit for a greener, more sustainable Scotland, HIE signs the Highland Climate Change Declaration, committing to reduce emissions by 3% per year.
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Alex Paterson is appointed Chief Executive of HIE.
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DEFENDING LOCAL JOBS
HIE establishes the Moray Task Force to tackle job losses in the defence sector. When the UK Government publish its Strategic Defence and Security Review in October, Moray is particularly affected, with the cancellation of the Nimrod contract and withdrawal of personnel from RAF Kinloss. There is also uncertainty about the future of RAF Lossiemouth.
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The EU2020 Strategy is approved by the European Council. It is designed to advance the EU economy, and promote sustainable economic growth.
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THE NEXT GENERATION OF BROADBAND
HIE successfully bids to be one of the initial four rural areas in the UK to receive a funding package from Broadband Delivery UK (BDUK) to spearhead the rollout of Next Generation Broadband.
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In the wake of the news that RAF Kinloss is to close, the Scottish Government announces a £300,000 skills and training package for Moray, providing opportunities for those facing potential redundancy.
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The SNP secure a majority win in the Scottish Parliament elections, and Alex Salmond is reinstated as First Minister.
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THE FOUR PILLARS OF ECONOMIC RECOVERY
HIE announces its key priorities to support economic recovery and deliver sustainable growth. They pledge to shape and support businesses and social enterprises, strengthen communities, develop key sectors and create a thriving low carbon region.
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the highlands go dutch
Flybe begins a daily scheduled air service from Inverness to Amsterdam Schiphol, providing access to one of Europe's global hub airports. The service is the result of proactive discussions between HIAL and Flybe, with collaborative support and key funding from HIE.
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THE UNIVERSITY OF THE HIGHLANDS AND ISLANDS
The University of the Highlands and Islands is established following the award of university title by the Privy Council.
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making waves internationally
The Pentland Firth and Orkney Waters Marine Energy Park is established in the North of Scotland, confirming its place on the global marine energy map. The purpose of the Park, which incorporates the world-leading European Marine Energy Centre (EMEC), is to heighten the international profile of the region and its reputation as a world leader in marine energy.
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The Moray Economic Strategy, a blueprint for the long-term diversification of the Moray economy, is officially launched. The need for the strategy emerged, following the UK Government's far-reaching review of the country's defence capabilities, which led to the closure of RAF Kinloss, and uncertainty over the future of RAF Lossiemouth.
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CONNECTING THE PERIPHERIES
HIE is chosen by the Scottish Government to manage Community Broadband Scotland (CBS), a key element of the Scottish Government’s Digital Strategy. CBS underpins the next generation broadband programme, supporting those communities that will not be reached to develop their own community-led solutions to deliver improved connectivity.
As part of the CBS pilot, three communities in the Highlands and Islands - Applecross, Colonsay and Tomintoul & Glenlivet – are chosen, along with three others elsewhere in Scotland, to benefit from a £5m fund that will help bring next generation broadband to hard-to-reach rural areas. Members of local communities will work with assigned broadband experts to develop ideas for improving internet access for local businesses and residents.
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Supporting Creativity in Shetland
Mareel Creative Industries Centre in Shetland officially opens. This £12m investment includes £965,000 of support from HIE. The Centre is owned and managed by the Shetland Arts Development Agency (SADA), which is a registered charity and HIE account managed social enterprise. The centre will act as a hub for the growth and development of the creative industries sector in Shetland.
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Scotland's Greatest Export
Scotland’s Food and drink exports reach £5.3 billion. The sector is soon expected to rival oil and gas as Scotland’s greatest export, and new targets are set to grow the value of food and drink sent abroad to £7.1 billion by 2017. Oil and gas exports are currently worth £7.6 billion.
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A Media Cluster
The Creative Industries Media Centre, based in Stornoway's “media village”, officially opens. This £2.6m development offers creative sector employment opportunities in the Outer Hebrides, and those associated with Gaelic are particularly recognised.
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harbouring plans for development
Completion of the new Jubilee Quay at Scrabster Harbour, a £17.6m redevelopment project, helps to position the north of Scotland at the forefront of the renewables revolution. In 2008, Scrabster Harbour Trust set out an ambitious programme of port infrastructure development with a view to capitalising on the marine renewable activity in the Pentland Firth and oil and gas development West of Shetland.
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£146m For Superfast Broadband
Following the project announcement in 2011, HIE signs a contract with BT to deliver Next Generation Access broadband across the Highlands and Islands.
The £146m investment is the biggest project the agency has ever undertaken, and one of the most ambitious infrastructure projects in Scotland’s history. It will deliver high speed fibre broadband across the region, transforming the area’s digital capabilities.
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The result of the Scottish Independence Referendum is in favour of Better Together, 55% to 45%. Alex Salmond resigns as First Minister, and Nicola Sturgeon assumes the position.
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HIE makes way for business growth
HIE relocate to Inverness city centre from Cowan House at Inverness Business and Retail park. The move is to make way for office accommodation for CapGemini, one of the world’s foremost providers of consulting, technology and outsourcing services and create up to 500 new jobs. HIE also contributed £1.175m to the project, demonstrating commitment to economic growth in the region.
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HIE maintains its status as an exemplary public sector organisation, becoming one of the first public bodies in Scotland to achiever Investors in Young People status.
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HIE and partners successfully argue EU transition status for the Highlands and Islands, securing €193m of EU structural funds until 2020.
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The Scottish Rural Parliament is established to give a stronger voice to Scotland’s rural communities.
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hie embraces wave energy
Wave Energy Scotland is set up as subsidiary of HIE in December 2014, to support and accelerate the development of wave energy technology and encourage investment in Scotland’s natural tidal resources. The Scottish Government hope to attract private sector investment to produce tidal power on a commercially viable scale.
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developing marine science
The European Marine Science Park in Dunstaffnage opens and the first two tenants move into the building. Developed by HIE and the Scottish Association for Marine Science (SAMS), the multi-million pound facility provides flexible laboratory and office space to those working in marine science, as well as access to skilled staff and services from SAMS.
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tidal on a grand scale
MeyGen, the world’s first and largest commercial scale tidal stream array, starts construction on the north coast of Caithness. MeyGen Limited intends to deploy up to 398MW of offshore tidal stream turbines to supply clean and renewable electricity to the UK National Grid by the early 2020s.
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HIE undertakes a wide-ranging study to explore the attitudes and aspirations of young people in relation to the Highlands and Islands. A total of 4,409 young people participate, sharing their views on issues such as educational and employment opportunities, housing, transport, connectivity, leisure, culture and community life.
The overwhelming message from these young people is one of pride and confidence in the region. They do not need to be convinced of what the region has to offer and there is an appetite to live, work and study here. However, high quality jobs, career progression opportunities and access to appropriate housing are seen as vital to support sustained population retention and attraction.
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For HIE, the work to help Scotland flourish goes on. Scotland’s Economic Strategy is published, outlining the government’s overall plans for economic growth and development. Increasing competitiveness and reducing inequality are the two central tenets of this new strategy. HIE is now focussing on these aims to help create a country with an innovative, international outlook, which will thrive far into the future.
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The Conservatives secure an outright majority in the UK General Election, under the continuing leadership of David Cameron. The SNP enjoy a historic landslide victory in Scotland, winning 56 of the 59 Scottish seats, making the party the third largest at Westminster.
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INVERNESS CAMPUS OPENS
Inverness Campus opens. This new world class facility will bring together business, research and educational organisations to support collaboration and knowledge transfer. The Life Sciences building is completed in July, and Inverness College UHI opens it doors to staff and students in August. The Campus will be a leading resource for enterprise and innovation, and part of the site has been designated as a Life Sciences Enterprise Area.
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HIE TURNS 50
After 50 years of tireless work to create better economic conditions for the Highlands and Islands, HIE is presented with the Scottish Council for Development and Industry President’s award for Outstanding Contribution to Scotland. This coveted award recognises the work that HIE and the HIDB have done to bring investment and jobs to the region since 1965.