The paper deals with a proposed national agency responsible for transport. But fears this would see local control lost have been allayed, the paper stating existing transport powers would not be taken from local authorities.

Mr Wallace said: "This means that the internal transport links - the ferries, the inter-island air service and buses - can remain under Orkney control, with Orcadians running the services for Orcadians. That is just common sense, but it is good to have that confirmed."

The paper will be discussed at next week's OIC transportation committee meeting.

Stromness business Combustion Energy and Steam Specialists Ltd (CESS) received the Queen's Award for Enterprise at a formal ceremony last night.

The company, owned by Mike Craigie, is the first Orkney firm to win the award - the UK's most prestigious awards for business performance.

The Norwegian sailing training ship Statsraad Lemkuhl celebrated her 90th birthday on Saturday with an open day at Kirkwall pier.

The sailing ship, a regular visitor to Orkney, was open to the public between 2pm and 4pm.

Prior to the open afternoon, the ship hosted a St Magnus Festival performance from the visiting Russian Patriarchate Choir.

The victorious Orkney Ink team from Stromness Academy

A team from Stromness Academy has scooped the overall award for the best business in the Young Enterprise Scotland national finals in Edinburgh.

Stromness Academy, with the company Orkney Ink, were one of 18 teams taking part in the final, all of whom had qualified after winning regional finals earlier this year.

Orkney Ink produced a range of goods linked to Orkney, the most successful being their guidebook, A Week in Orkney.

Orcadian student Sweyn Kirkness was back on our television screens on Friday afternoon, competing in the quarter finals of Channel Four's Countdown programme.

But Sweyn, 18, of Weyland Bay, was beaten 78-64.

Host Richard Whitely said: "We have to say farewell to you, the Orcadian Octavian,. The Number Two seed had to go, you have certainly made a great impression here with your nine games."

That's the opinion of Orkney MSP Jim Wallace, who stressed that Orkney cannot let the chance slip by.

He said: "The Independent Review has to consider the whole issue of Council funding, including the sharing out of central funds, and so it gives the Islands Council the opportunity to put together a detailed case for Orkney."

The cast prepare forPeer Gynt

The 2004 St Magnus Festival kicked off in Kirkwall on Friday night with a spectacular community opera production of Norwegian folk tale Peer Gynt, in the Pickaquoy Centre.

With a cast of 150 local actors, musicians and singers, the show is one of the biggest ever staged in Orkney.

The first performance in the Pickaquoy Centre was a sell-out.

Click here for official St Magnus Festival website

Mervyn Morgan

A man who raped a Stromness woman within hours of meeting was jailed for three and a half years at the High Court in Glasgow on Thursday.

South African Mervyn Morgan, 32, had made his way to Orkney after "meeting" the woman in an internet chatroom. He raped the woman in her Stromness home hours later.

The judge, Lord Kingarth, told Morgan that in sentencing him he had taken into account that no force or physical violence had been used, and that the assault had been broken off when the victim awoke.

The magazine aims to address the issues raised at October's 'Walk Tall and Chill' event and the 'It's Doin' Me Head In' conference in March 2003.

These events saw pupils volunteer to work with professionals to discuss issues such as sex, drugs, employment issues and alcohol. Interviews with key people in Orkney will be presented as feature articles for the magazine.

Councillor Keith Johnson will launch the magazine at Orkney College on Monday, June 21.

Police investigating internet child pornography raided a property in Orkney earlier this month.

It is understood that computer equipment was taken from four homes in the Northern Constabulary area as part of Operation Falcon - a major international purge on child pornography.

Kirkwall police inspector David Miller confirmed this week that the operation took place and that their inquiries were continuing.

Sheriff Graeme Napier hit out at drink drivers in Orkney this week, sentencing one man to 70 days in prison.

Laurence Hourston, Clairavon, Evie, admitted to driving with 160 microgrammes of alcohol in 100 millilitres of breath in May. He was sentenced to 70 days in prison and disqualified from driving for three years.

Sheriff Napier told the court: "People in Orkney have to realise they cannot go around driving under the influence of alcohol and prison sentences will be imposed on such occasions."

A Stromness resident is claiming her family is being forced out of Orkney because her 11-year-old son has been constantly bullied at school.

Kris Westerman, who moved to Orkney in September 2003, claims that Stromness Primary School and Orkney Islands Council have not dealt with the bullying. This, she says, is forcing her to leave Orkney and seek accommodation on the Scottish mainland.

Brian Aim from Holm has been crowned regional winner for Scotland in the Jewson Builders from Heaven competition.

Brian triumphed over builders from across the country who were all nominated by their customers for doing a great job. One of 30 short-listed, Brian impressed the judges with his long-standing reputation - following a family tradition he joined the now 104-year-old family firm, John R. Aim.

Brian takes the 2003/2004 regional Builders from Heaven title and walks away with a trophy and £500 to spend at Jewson.

About 120 people from across Scotland are expected to attend the meetings in the Pickaquoy Centre on Friday, June 25.

Chief executive Alistair Buchan said: "Hosting the convention represents a major logistical challenge, a challenge we are happy to take. Quite apart from the honour this represents for Orkney, we are keen to further promote our tourism industry, particularly in rural areas."

Issues on the agenda will include finance and relations between Local and Central Government.

The cash is part of a £70 million package for the NHS across Scotland. This in turn was raised after the Executive's Health Department were asked to identify savings from central budgets.

The airline has announced plans to increase the number of discounted fares on flights to Aberdeen and Edinburgh by 30 percent and introduce new flexible fares - without a Saturday night stay restriction - on the routes.

The company also announced that its senior management team will hold regular, twice-yearly meetings with Orkney Islands Council and other stakeholders to ensure Loganair's services continue to reflect the needs of the local community.

Mr Mackay, of Hillside Road, Stromness, filled a vacancy in the community council left by the departure of Elena Kimmett.

Office bearers were also elected, with Linda Lennie returning as chairwoman and Graham Bevan and John Brown as joint vice chairman.

More time, more teachers and more choice - that's the future for Physical Education in Orkney's schools, Education Minister Peter Peacock announced this week.

The Minister said he was committed to boosting the opportunities for all pupils to adopt more active lifestyles.

Among the measures announced are at least two hours PE per week for all pupils and 400 more PE teachers across Scotland.

Mr Peacock said: " I want young people - throughout Orkney and beyond - to have the opportunity to be engaged by sport, to have greater choice in the activities they pursue and to be inspired by their PE teachers, just as I was."

The vessel had lost engine power while travelling from Wick to Kirkwall. The 23-foot Highland Yankee was towed into the Kirkwall marina at 6.45pm.

The three projects involve rural service delivery, the development of coastal heritage sites and using watercourses to secure local sustainable community development.

Orkney Tourist Board chief executive Barbara Foulkes said: "We are delighted to be involved in the NORCE (Northern Coastal Experience) project. This is a great opportunity to work with other partners who face similar challenges of distance from market and limited season."

The report listed as concerns the leadership and management within the school and care and welfare of pupils.

Education director, Leslie Manson, said on Monday: "We are working closely with pupils, staff and parents to draw up a robust action plan to fully address concerns at the school and this will be taken forward in the first instance, by an experienced head teacher, who has been appointed, on secondment, until the end of the school year in 2005."

The appointment has meant the reopening of the practice’s patient list, and will also allow people who are only in the area for a short time to be seen.

NHS Orkney chief executive, Steve Conway, said: “Most patients are now seen within one to two days and the practice has made changes to other services and systems to make them easier and faster for their patients.”

NHS Orkney took over the running of the practice, formerly known as Scapa Medical Group, in April.

The Golf Orkney initiative sees the Kirkwall and Stromness golf clubs teaming up with eight hotels in providing a new stay-and-play deal for golfers. For a fixed daily fee visitors are offered accommodation and the chance to play on either or both of the two courses.

A new website also allows accommodation with passes for the courses to be booked on-line

The idea came from the Orkney Marketing Scheme, which was funded by Orkney Enterprise and the OIC, with backing from Europe.

The count of Orkney and Shetland's votes in last week's European election took place on Monday, with the Lib Dems coming out top, followed by the Conservatives and the Scottish National Party..

The results were: British National Party 121; Operation Christian Vote 204; Conservative and Union Party 1437; Scottish Green Party 817; Scottish Labour Party 889; Lib Dem 2139; Scottish National Party 1306; Socialists 648; Scottish Wind Watch 70; UK Independence Party 846; Fergus Tait 38.

The total voter turnout was confirmed at just over 26 per cent - a slight increase over the turnout in the 1999 European elections.

The Sunset Cruise on the Hamnavoe, on July 3, is one of a number of OQFD events planned for 2004. As well as an evening of traditional music, the guests will enjoy an Orkney buffet supper, with all products supplied by OQFD members.

Depending on the weather, the cruise will either follow a route up the West Mainland coast to Birsay or down through Scapa Flow before returning to Stromness.

Tickets, priced £20 each, are available from NorthLink.