Digital Recyclers is the fourth new Highland business set up this year which Newsnight Scotland and the BBC news website are following as they trying to weather the economic storm.  The Whiteheads  believe they've hit upon such a good business idea they must expand quick enough to dominate the Scottish market or an existing, larger, business might try to muscle-in.

"When we phoned the Highland Council, they  don't know who is responsible for administering it,  and it's down to HIE. So we just go backwards and forwards between the two."

HIE dispute this. They say HIE paid for nine hours of one-to-one business advice for Whitehead, which continues to be available. However, they can find no record of contact from Mr Whitehead since 2 June. They're now in  contact with him to clarify what options are open to his business.

Responsibility for business advice is changing and may be causing confusion among businesses. The change was introduced by the Scottish Government. Some, but not all of the responsibility for advising business start-ups, is moving from HIE and Scottish Enterprise to local authorities.

But that is taking longer than anticipated and won't be complete until April 2009. To add to the confusion, HIE will 'cherry pick' retaining the responsibility for business that has the potential to grow significantly, and to operate beyond local markets, particularly  the key sectors of life sciences, food and drink, tourism, energy, creative industries and financial and business services, though perhaps not the less glamorous, traditional manufacturing and services sector. This is causing confusion over who is responsible for what, and induced an awkward element of paralysis.

Social funding
In Edinburgh at the start of 2009  financial year, community leaders and opposition councillors pleaded for a 12-month transition period, to offer staff job security, while decisions were taken on how to distribute cash. This was opposed by the Lib Dem/SNP administration and just nine months funding granted which runs out in December, with redundancy notices likely to be handed out shortly, and groups disappearing by year end.

Edinburgh's  £7.5m share of the FSF is handled by Edinburgh Partnership, made up of key bodies such as the Council, NHS, police, and Scottish Enterprise, chaired by council leader Jenny Dawe. The FSF has eight national outcomes – such as improving chances for young children and preventing crime. But Edinburgh Partnership will only distribute money to those that achieve three priorities – early intervention in the deprivation cycle, health improvements and job opportunities.

Chair of the Edinburgh Community Representatives' Network, George Pitcher told the Lib Dem/SNP administration: "You've failed in your responsibility to the people who elected you. Something has gone wrong, but it's not too late to put it right."

Voluntary sector representative for Forth Neighbourhood Partnership, Dave Pickering adds: "There's nothing fair about the Fairer Scotland Fund. Areas are receiving funding based on flawed principles, and the poorest areas are facing serious cuts." In addition, traditionally worse-off areas, such as the Forth ward, will suffer for places such as Almond and the City centre, as a result of the way funding distribution has changed.

Councillor Dawe says: "It is not this council that makes these decisions – it is the Edinburgh Partnership. We form one layer in that. Every opposition councillor who spoke got it wrong." 

Sources: http://news.bbc.co.uk/
http://news.scotsman.com