Given the importance of this survey as a barometer of Scottish business opinion, Inverness chamber will continue to work hard to increase the number of Highland businesses involved.

We feel it is vitally important that the local business voice is heard and that our successes and challenges are reflected in this national survey.

The most recent survey, giving results for the fourth quarter of 2009, suggests that despite an improvement in the position from a year ago, the economic recovery is fragile and tenuous and the year ahead is therefore uncertain for the Scottish economy.

In general terms, the survey concludes that although Scottish business is clearly in a better position at the start of 2010 than it was 12 months ago, we cannot take the recovery for granted.

We would very much concur with this view and feel that this year is still likely to pose further challenges for the Highland economy.

In general, enterprises have had to contend with the costs and disruption of a harsh winter, the reimposition of VAT at 17.5 per cent and the continued threat of industrial action in the postal and airline industries.

Pressures on national, devolved and local government budgets are likely to increase in 2010 and there may be a weakening in consumer spending.

These factors, coupled with increased pressures on margins as a result of rising raw material and energy costs, could threaten the emerging and fragile recovery.

Positively, there is further evidence that the first signs of recovery, led by manufacturing, which SCC reported in its July survey, have been supported by a significantly better year in tourism.

The success of the tourism sector over the last year is something we can identify strongly with in the Highlands and islands.

Across Scotland we have also seen signs of a return to positive investment trends in manufacturing for the first time in nearly two years. Additionally, there is evidence of improving employment levels in this sector which may be linked to the Scottish Government's positive action to promote the recruitment and retention of apprentices.

But with few signs of any sustained improvement in activity across other sectors, it is clear that our recovery is likely to be slow and fragile.

In addition, given that there will be a general election this year, politicians of all parties must recognise that increased tax revenue must come from economic growth and the widening of the tax base.

If economic growth is to be sustained, politicians cannot simply increase rates of tax on already hard-pressed businesses.

Inverness Chamber strongly concurs with SCC's assertion that it is time to reassess the planned increases in national insurance contributions and fuel duty, as any rising costs will have an adverse effect on business and the Scottish economy.

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