Kenny MacAskill claims hundreds of tourism jobs are under threat

Tourism spokesman Kenny MacAskill said that �10.6m of EU cash had created more than 950 jobs in the Highlands and Islands since 2000.

But he said the money may be withdrawn after 2006 and given to new EU members.

Mr MacAskill said the loss would be "very damaging" to the tourism industry and called on the Scottish Executive to plug the funding gap.

The Lothians MSP said 31 tourism projects had been set up across the region thanks to EU Objective One funds, with around �23m of private and public cash being poured into the projects.

Future in doubt

He said: "European investment helped set up a wide variety of tourism projects from Stornoway to Kinlochleven.

"The ending of the funding means not only are the prospects for new projects seriously damaged but the continued existence of the current projects is thrown into doubt."

"The tourism industry is crucial to the prosperity of the Highlands and Islands.

"The loss of European funding to our main competitors will have very damaging consequences for both the sector and the economy of the region as a whole."

The European Commission set out its vision for future funding in a report last week and will publish formal proposals in July.

Best deal

From there draft regulations will be drawn up about future funding, with negotiations amongst member states expected to reach agreement by the end of 2005.

But an executive spokesman said no final decision had been taken on funding levels for the Highlands and Islands in the period after 2006.

He said: "The debate is still under way and it is far too early to predict how much funding each region will receive.