Seòmar agus comataidhean

I refer the member to the answer to question S3W-26214 on 17 August 2009. All answers to written parliamentary questions are available on the Parliament''s website, the search facility for which can be found at http://www.scottish.parliament.uk/Apps2/Business/PQA/Default.aspx.

The Scottish Government commissioned a research programme on Profitable and Sustainable Agriculture “ Plants in 2006, from which the Scottish Agricultural College (SAC) is receiving an annual grant for strategic research of approximately £1.5 million for the period 2006-07 to 2010-11. The Scottish Government is currently in discussion with stakeholders regarding the priority questions for strategic research which will be commissioned from 2011. SAC, as one of the Scottish Government''s main research providers, is aware of and fully involved in this process.

In addition, the Scottish Government contracts SAC to undertake crop variety trialling and associated activities. The funding for this is as follows:

2006-07	2007-08	2008-09	2009-10	2010-11
Actual (£m)	Actual (£m)	Actual (£m)	Budget (£m)	Plan (£m)
0.261	0.336	0.292	0.260	0.230

The reduction in contract funding for 2010-11 is due to the constant search for best value and need to find sums for the pressing issue of climate change. The contract funding for 2011-12 will be determined nearer the time.

The budget allocated to Highlands and Islands Enterprise since 2002-03 is shown in the following table:

2002-03 (£000)	2003-04 (£000)	2004-05 (£000)	2005-06 (£000)	2006-07 (£000)	2007-08 (£000)	2008-09 (£000)	2009-10 (£000)	2010-11 (£000)
79,700	95,300	104,300	99,000	114,400	114,700	74,000	73,100	73,200

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.

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.

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.

The Caithness and North Sutherland action plan, in which Highlands and Islands Enterprise is an active partner, is one such transformational project which focuses on the future of the area, post decommissioning.

This information is not collated or routinely held by the Scottish Government. However, Highlands and Islands Enterprise has advised the Scottish Government that it is currently developing relationships, or has agreed growth plans, with around 250 businesses and 80 social enterprises in the Highlands and Islands area which it believes have growth potential.

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.

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.

The funding for business support, including support for small businesses, across Scotland is an operational matter for Highlands and Islands Enterprise and Scottish Enterprise. Budget allocations to the two agencies are not disaggregated on a small business basis and the requested data is not centrally held or collated.

Local authorities, VisitScotland and Highlands and Islands Enterprise also assist small businesses and I would suggest the member contact the relevant organisations to obtain this data.

Similarly, funding allocations in relation to the third sector, tourism, innovation and renewable energy in the specified area and time frame is not held or collected centrally.

However, an indicative analysis of renewable energy budget spend in 2008-09 shows estimated proportional spending in the Highlands and Islands as follows:

Total spending in the Highlands and Islands - £7,756,140.00.

Total spending in Scotland - £10,656,675.00.

Percentage spend in the Highlands and Islands - 72.78 per cent.

The budget allocated to Highlands and Islands Enterprise has been utilised as follows for each year from 2002-03 to 2008-09:

2002-03: under spent by £0.9 million,

2003-04: under spent by £2.27 million,

2004-05: under spent by £5.6 million,

2005-06: under spent by £0.05 million,

2006-07: under spent by £0.4 million,

2007-08: under spent by £0.01 million.

Audited accounts for 2008-09 are not yet available.

The setting of indicators to assess the impact of Highland and Island Enterprise''s transformational projects on targets set out in The Government Economic Strategy is an operational matter for Highlands and Islands Enterprise (HIE). However, HIE has advised that, given the complexity and varying timescales associated with these investments and given that some are deemed to be nationally as well as regionally significant, a range of indicators are used.

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.

Highlands and Islands Enterprise (HIE) is responsible for determining which businesses are considered to be significant and/or to have high growth potential. However, I understand that, in doing so, HIE takes a number of factors into account including market opportunity, the sector in which the business operates and significance to the local economy.