HIGHLANDS and Islands Enterprise will not lose its fight to keep

responsibility for Highland tourism, despite proposals by the Scottish

Tourist Board to take it over, its outgoing chairman, Sir Robert Cowan,

predicted yesterday.

Sir Robert, who stands down today, and was also the longest serving

chairman of HIE's predecessor -- the Highlands and Islands Development

Board, was speaking at the launch of HIE's annual report.

He explained some of the background to the STB proposals that its

responsibilities should extend beyond the Highland line, taking over

HIE's #12m tourism budget:

''Scottish Enterprise is becoming increasingly involved in tourism,

and I think that is one of the reasons why STB is feeling threatened and

is looking for other roles for itself. But I think the politicial

support is predominantly with the enterprise organisations.

''The Scottish Tourist Board has chosen this time to make its attack

when it is not enjoying the greatest of reputations. This is partly

because hoteliers are looking for scapegoats to blame for a poor season,

and, perhaps unjustly, they blame the STB because its optimistic

predictions have gone a bit sour.''

Sir Robert said that the arguments in favour of retaining

responsibility for Highland tourism in the Highlands were irrefutable.

They had been made twice before, and twice before the Government had

accepted them, he was sure they would do so again.

''The different sectors of the economy are more inextricably mixed up

together than in other parts of the country. It really does not make any

sense to take tourism out of that, it would make just as much sense to

take agriculture or industry.

''You could easily just abolish the whole of us under rationalisation.

But then, what you would have is the situation where all the decisions,

about where the money is spent, being made in the central belt of

Scotland,'' he said.

Sir Robert looked back on his time in the HIDB and HIE charting

progress made in developing the Highlands, and the inherent difficulties

in that task.

''One has to recognise that many of the problems facing remote areas

and islands are not soluble. I don't think you will ever get to the

position where it is as easy to do business in the Western Isles as it

is in any other part of the country, so we will always have to have

special types of support,'' he added.

Sir Robert was launching HIE's first annual report. It showed that the

body had helped to create and retain 2700 jobs in its first year. He

predicted further gains despite the huge challenges posed by job losses

at the McDermott oil fabrication yard at Ardersier, the rundown of

Dounreay, and the withdrawal of the US navy from Cowal.

''We have confounded the sceptics who doubted the concept of local

enterprise companies. Our track record, in just one year, is impressive

and I believe it represents the start of a new era for development in

the Highlands and Islands.

''Certainly the network has tough tasks ahead, but no stone will be

left unturned to create jobs in affected areas. Now, more than ever,

there is a need for a network such as this.''

HIE's chief executive, Mr Iain Robertson, said there was a new spirit

of co-operation in the Highlands between HIE, local authorities, and

other bodies.

''The rapid and positive joint reactions to issues, like the recent

McDermott job loss announcement, is proof of this new attitude,'' he

said.

''The HIE network is designated for maximum effect, and rapid

response, able to cut out red tape, and the agencies, companies, and

organisations we work with are recognising that.''