A businesswoman suing Highlands and Islands Enterprise (HIE) for £25million has claimed the Scottish Government missed an opportunity to stop “bad practice and underperformance” at the development agency.
Wendy Clark is calling on First Minister Nicola Sturgeon and Economy Secretary Keith Brown to “open the organisation up to genuine openness, scrutiny and accountability”.
Following the government’s enterprise and skills review of the roles of HIE and other agencies, Mr Brown announced the body would retain its board and statutory functions.
Ms Clark, owner of LC Management and former owner of Invergordon-based Port Services, said she believed the review’s outcome would do “lasting damage” to the area’s business community.
She said: “By preserving HIE in its current form, politicians have condemned entrepreneurs in the Highlands to years of poor support and business uncertainty.”
Ms Clark is suing HIE and Scottish ministers at the Court of Session in a case centring on the agency’s use of public money to support the Global Energy Group’s acquisition and redevelopment of Nigg yard in Easter Ross.
The company, which is not accused of any wrongdoing, received several tranches of money from HIE and other public bodies from 2011, which it is claimed amounted to more than is permitted under the European Commission’s limits for state aid.
Ms Clark added: “Even though the HIE structure isn’t changing, I hope that public and political support can be built to open the organisation up to genuine openness, scrutiny and accountability.
“Even at this late stage, I urge the First Minister and Keith Brown to build these vital reforms of process into their final proposals.”
A government spokeswoman said: “The outcome of the review will protect the unique service that HIE delivers, whilst promoting greater alignment between the agencies. It will continue to be locally-based, managed and directed and will enhance the support that is available to businesses, employers and employees across the region.”
An HIE spokesman said it is “well regarded as a highly successful development agency”, adding: “As recently as last summer, Audit Scotland conducted a thorough review of the performance of Scotland’s economic development agencies which concluded that both HIE and Scottish Enterprise were performing well.”
