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Leading economist brands Highlands and Islands Enterprise plans “retrograde”

The P&J has campaigned to keep HIE local
The P&J has campaigned to keep HIE local

A leading north economist has condemned plans to scrap the Highlands and Islands Enterprise (HIE) board as “retrograde”.

Tony Mackay, of Inverness-based Mackay Consultants, used his monthly report to criticise the move, which critics say will lead to decisions being taken in the central belt.

The economist said he failed to see how setting up a new board based in Glasgow or Edinburgh would improve HIE.

Orkney MSP Liam McArthur described the comments as a “warning not to be ignored”.

“It is yet further evidence that people in the Highlands and Islands are concerned a loss of local control will damage economic and community development in the region,” he said.

Deputy First Minister John Swinney provoked anger last week when he confirmed to MSPs that a new “overarching” board for Scotland’s enterprise and skills agencies will replace the current HIE board.

A Scottish Labour motion condemning the plans has received cross-party support, although SNP MSP Maree Todd has lodged an amendment welcoming the changes.

In his report, Mr Mackay states: “I fail to see how setting up a new board based in Glasgow or Edinburgh will do any better (than the current HIE set-up).

“I believe the abolition of the HIE board is a retrograde move.”

Mr McArthur, who is campaigning against the changes, welcomed the economist’s comments.

He said: “In the wake of this news, assurances from SNP Ministers that HIE will continue to perform its distinct role for a unique region are not credible.

“Local businesses don’t believe it and nor, it seems, do leading economists in the Highlands and Islands.

“Tony Mackay is absolutely right to call this latest centralisation by the SNP a ‘retrograde move’.

“Like many, he recognises that businesses and communities in the Highlands and Islands require tailored support that only an economic development agency with a laser-like focus on their needs can provide.”

A review last month recommended that a new single board should be set up to co-ordinate the work of HIE, Scottish Enterprise, Skills Development Scotland and the Scottish Funding Council.

A consultation is due to be held as part of a second phase of the review.

The Scottish Government insists it understands the “different social, economic and community development challenges facing the Highlands and islands” and claim they will “maintain dedicated support which is locally based, managed and directed by HIE”.

It argues the changes will “benefit from better national co-ordination” with other organisations.