Highlands and Islands Enterprise (HIE) chairman Lorne Crerar has warned low oil prices and public sector cuts could spell danger for social enterprises in the region.
But he also said yesterday the Highlands were well-placed to tackle these challenges head on, despite a number of key employers making job cuts.
He was speaking after HIE reported on its financial year ending March 31, 2016, when it managed to balance its books.
Professor Crerar, who has chaired HIE’s board since 2012, said: “Many of the challenges facing our economy last year remain with us still.
“Oil prices are still very low and public sector budgets are under pressure; something that will affect social enterprise in particular. However, a growing resilience, coupled with the innovation and drive across the business sector means that the Highlands and Islands is well-placed to meet these challenges, continue to grow, prosper and remain competitive internationally.”
HIE brought in £113million and spent the same amount during 2015/16, a spokesman for the development body said.
Income and expenditure had also evened out the previous year, at £97million.
In each of the past two years HIE has received £59million from the Scottish Government.
In outlining its achievements for the year, HIE said it had helped secure up to £111million worth of foreign investment in the region.
The quango’s 2015/16 highlights included Norbord’s January announcement that it would shell out £95million on its mill at Morayhill near Inverness.
The Toronto-headquartered wooden panel maker said the investment would safeguard the futures of 130 workers.
Wave Energy Scotland – the public body set up by HIE and the government to help marine-power industry – completed its first full year, investing in 35 research and development projects.
But the year was also punctuated by cruel blows, such as salmon producer Marine Harvest revealing it would axe 100 jobs, while miner Rio Tinto said it was reviewing its smelter operation in Lochaber, where it employs 150 people.
A total of 855 jobs are expected to be created or retained as a result of investments by HIE during the year to March 31.
HIE’s full accounts, which include financial details such as directors’ pay, will be published in autumn following an audit. Chief executive Alex Paterson earned £147,658 in 2014/15.
He was unavailable for comment yesterday.
