A prestigious panel of experts has expressed “grave reservations” about plans for a shake-up at the north’s development agency.
The Royal Society of Edinburgh (RSE) yesterday threw its weight behind calls to save local decision-making at Highlands and Islands Enterprise (HIE).
In a critical report, the respected national academy of science and letters claimed that the Scottish Government’s case for scrapping HIE’s board was not “adequate and persuasive” – and could even prove “counter-productive”.
And the RSE also said its concerns were not addressed by a compromise plan tabled by HIE chairman Lorne Crerar to retain a “delivery board” for the body, saying the idea would only “add to the complexity”.
The society’s intervention last night heaped further pressure on Scottish ministers to abandon the proposed central belt takeover of HIE.
The government had been expected to announce a final decision on its future next week, but that is now in doubt amid plans for a debate on a second Scottish independence referendum.
Holyrood ministers previously signalled that they would axe dedicated boards for all Scotland’s enterprise and skills agencies, and replace them with one over-arching panel to coordinate their work.
But critics warned the move would undermine 50 years of progress in the Highlands, and the Press and Journal’s Keep HIE Local campaign was backed by all opposition parties, Highland Council, trade unions and SCDI, as well as former chairmen and chief executives of the agency.
In its newly-published advice paper on the government’s skills and enterprise review, the 1783-established Royal Society said it “wholeheartedly supported” the underlying aim of boosting economic performance.
However, it said: “The RSE has grave reservations about the intention to abolish the existing boards.
“Amongst other factors, we note the serious concerns raised in the Highlands and islands over the proposal to abolish the HIE board, as expressed by the vote passed in the Scottish Parliament on the 18th January.
“We are concerned that, rather than furthering the aim of the government to improve Scotland’s economic performance, abolition of the boards could have the opposite outcome by undermining one of the most important engines driving innovation in the Scottish economy – our higher education and publicly funded research system.”
It added that “the creation of a highly centralised body with a vastly complex and diverse remit is not considered likely to be helpful” in providing greater alignment and integration, and in fact “it might well be counter-productive”.
Last night, the remarks were seized upon by Liam McArthur, the Liberal Democrat MSP for Orkney.
“For months, people across the Highlands and islands have been making clear their opposition to the SNP government’s plans to hobble the body responsible for supporting economic development in the region,” he said.
“Now the Royal Society of Edinburgh has come to the same conclusion that the SNP’s ill-judged plans to centralise HIE are wrong.
“The SNP must abandon their mantra that ‘ministers know best’ and listen to the businesses, communities and experts who have condemned this latest power grab by a government with a track record when it comes to centralisation.”
A Scottish Government spokeswoman said: “As the Royal Society of Edinburgh point out, it is essential that we do not lose sight of our aim of enhancing our enterprise and skills services to boost Scotland’s economy, which will help to deliver our ambition of ranking among the top quartile of OECD countries in terms of productivity, equality, wellbeing and sustainability.
“We have made clear on a number of occasions that enterprise and skills agencies will benefit from the right access and support to national services, and that Highlands and Islands Enterprise will continue to be locally-based, managed and directed, providing dedicated support to the local economy.
“The Economy Secretary Keith Brown will make a statement to parliament in the coming weeks around how to take forward governance arrangements for establishing the strategic board, which is one part of a wide-ranging programme which will improve services for businesses and individuals in all parts of Scotland.”
