Scottish construction firms are losing out due to the fact that too many contracts are being awarded to Irish firms, according to a Scottish business leader.

Stewart Nicol, chief executive of Inverness Chamber of Commerce, said eight contracts recently awarded by Highland Council worth a total of £25m went to firms in Ireland.

He said the Council was not using local contractors and expressed concern that Irish companies were not reinvesting in the economies in which they work.

He told the Scotsman: "In other European countries there seems to be a greater tendency that local businesses win the contracts.

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"While we recognise the European legislation, I think there could be appropriate clauses that give the opportunity for local businesses to win the tender.

"I see in Spain and Italy they keep it within the region, not just the country, and they are obviously interpreting the same legislation."

He said the firms winning the contracts were bringing their own staff, adding: "Their guys are staying in Portakabins, there is not even money going into local bed and breakfasts.

"I am not saying that local businesses are not up to delivering them [contracts], or are not fit for purpose.

"But these are local companies paying Highland council rates, community charges. That is all going into the local economy."

David Alston, Highland Council’s deputy leader, said: "We have to work within the procurement law but we are keen to work with the construction sector. If there are any ideas on how we could help, we will be willing to listen.

"We have been working with local businesses to make sure that they are well placed to submit tenders. But it is important to understand that companies here also bid for contracts outwith the Highlands."

(IT/GK)