It is difficult to find much positive to say when the headlines are dominated by the recession and the massive rise in public debt between now and 2015 which is to be plugged, the Chancellor hopes, partly by annual escalators in duty on fuel and whisky which will hit the Highland economy.

From SCDI's perspective, we believe that to have significantly cut investment or front line public services at this time would only lengthen the economic downturn, but we are concerned that this is what is implied for the Scottish Budget. We welcome the incentives to boost North Sea production, which we have been calling for, funding for back-to-work training and the temporary increase in tax relief to businesses on capital spending to 40 per cent.

Particularly positive was further support for the housing sector which SCDI has been pushing for through our Construction Action Plan. Guaranteeing mortgage-backed securities is a bold proposal to increase the flow of credit into the market. It should hopefully bolster signs that confidence and activity are returning in cities like Inverness. The car scrappage scheme should have a similar effect for our important motoring sector.

But perhaps most significantly of all — I believe potentially for this region — was the announcement of targeted investment in key sectors, including the announcement of a £750 million strategic fund to support emerging technologies and highly-skilled sectors.

Last week the UK Government also published a new industrial strategy, developed in response to the credit crunch and the realisation that it will need to intervene more in support of entrepreneurship and growth, with less money available. So winners will be picked. What struck me was the strengths and potential of this area in nearly every sector.

Our onshore and offshore renewable resources and supply chain can play a leading role in a Low Carbon Industrial Strategy and supply power to the UK and Europe. In respect of a Digital Britain, we have proposals for new, green data centres which could process transactions for the city. A range of our companies are involved in advanced manufacturing and engineering construction. With the plans for UHI, we are ideally placed to capitalise on opportunities in life sciences and the industrial opportunities in an ageing society. Government should be beating down our door with targeted support!

This is a powerful message which HIE and SCDI will be taking directly to the London business and investment community tomorrow when we hold an Influencers' Dinner in the City. HIE chairman William Roe will lead the discussion and we are delighted that the Scotland Office minister and Highlands and Islands' MPs will support the event.

We will be promoting this area's emerging reputation as being at the forefront of key 21st century business sectors. This region is at the leading edge and we will be issuing an invitation to the London business community to invest in the opportunities to build on our world-class assets and create a diverse, modern economy with a sustainable future.

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