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‘Lessons to be learned over Dakatari collapse’

Danny Alexander writes for the Press and Journal.
Danny Alexander writes for the Press and Journal.

The collapse of a deal to attract 126 jobs to Inverness does not reflect a dimming of the Highlands’ attractiveness to international investors, a north MP has claimed.

But Danny Alexander warned that there were lessons to be learned to ensure the region’s economy remained robust.

Daktari Diagnostics has shelved its plans to establish a manufacturing base in the city after a £2.2million government grant announced last year lapsed.

The move has dealt a blow to the region’s aspirations of establishing a “centre of excellence” for the life sciences industry on a 215-acre campus that includes Raigmore Hospital, the Centre for Health Science and LifeScan Scotland.

The deal was initially heralded by First Minister Alex Salmond as a sign of Scotland’s continuing success in attracting inward investment when he met with representatives of the company on a trip to New York last year.

Massachusetts-based Daktari make diagnostic equipment for detecting and monitoring diseases such as HIV.

Mr Alexander, the Chief Secretary to the Treasury, said: “The announcement that Daktari are pulling out of the deal does not reflect our recent success of attracting investment to the Highlands.

“These jobs would have been very welcome in Inverness and it is disappointing this opportunity has been lost for the time being. We must learn the lessons to ensure the Highland economy remains robust in the long term.”

A spokeswoman for Highlands and Islands Enterprise (HIE), said: “HIE and Scottish Development International remain in contact with Daktari Diagnostics, and the company continues to express interest in pursuing opportunities to establish a presence in the North of Scotland.

“Following the business’ announcement last April that it intended to locate manufacturing in the Inverness area, the company began to receive much larger orders than anticipated for its HIV monitoring product. As a result, it took a decision to focus on serving this upsurge in demand from its existing production base.

“Daktari has received no public funding to date from HIE or SDI, and the offer of support which was announced last year has now expired.”