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HIE accused of celebrating “the loss of its power”

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The north’s development agency insists a review of its operations – by its own chairman – will guarantee local decision-making.

The claim was, however, instantly dismissed by a north MSP who accused Highlands and Islands Enterprise (HIE) of celebrating “the loss of its powers”.

As part of radical reforms, HIE chairman Professor Lorne Crerar set out options for the scope, structure and functions of a “Scotland-wide strategic board.”

Colleagues insisted yesterday (MON) that the recommendations would ensure a local structure remained in place that would retain autonomy.

Shetland Liberal Democrat Tavish Scott disputed that, however, warning that the report’s recommendations would have the opposite effect, with ministers tightening their grip on its activities.

According to an agency spokesman, “HIE would have a key role on the new national ‘strategic board’ enabling the region’s voice to be heard at the highest level” and “preserve local decision making.”

Mr Scott interpreted the 36-page report rather differently.

“So, the HIE board welcomes losing its powers,” he said.

“The report states that a delivery board’s primary responsibility will be to do what the government wants it to do and its secondary responsibility will be to the needs of the Highlands and Islands.”

Mr Scott said HIE and its predecessor, the Highlands and Islands Development Board, had always previously “stood up for the area, no matter the political persuasion of the government of the day”.

He warned that the recommendations signalled HIE “becoming a delivery arm” of government.

Answering the criticism, Economy Secretary Keith Brown, who commissioned the report, said: “We must not lose sight of our aim of giving our businesses and individuals the right access and support to national services which will help boost Scotland’s economy.

“I welcome the recognition by the HIE board that our proposals are about enhancing economic performance in the Highlands and Islands, as well as across the country.”

Earlier this week, former HIE chairman Professor Jim Hunter urged MSPs to resist plans to reduce its independence.