A Highland Labour MSP has turned against new proposals for a shake-up of the region’s development agency.
Rhoda Grant cautiously welcomed a plan tabled by the chairman of Highlands and Islands Enterprise (HIE) last week because it would enable the agency to retain its board.
However, she has now said that, on closer inspection of Lorne Crerar’s report, the blueprint would “centralise power” and “diminish” HIE’s role.
A fresh row erupted last week surrounding the independence of the body after Professor Crerar tabled a compromise package.
He recommended that HIE and other bodies should be able to keep their own “delivery boards”, but also backed a controversial move to create a national panel to oversee its work – and said it could be led by a government minister.
Local SNP and Green MSPs gave their support to the move- but Liberal Democrats and Conservatives claimed it would hand Scottish ministers “absolute control” of HIE and was “even worse” than previous proposals.
Ms Grant, Labour MSP for the Highlands and Islands, has also now expressed her concerns, and has tabled questions in Holyrood urging Scottish ministers to “abandon this ill-thought out proposal”.
She added: “On first reading, it would appear that Professor Crerar is supporting the campaign to keep the board of HIE.
“Unfortunately, this is not the case. While Professor Crerar proposes a HIE board, it will be answerable to the centralised strategic board, whose main concern will be the delivery of a Scotland-wide economic strategy.
“Delivery of this national strategy will be the primary function of HIE with its current obligation to grow and secure the local economy reduced to an afterthought.
“HIE’s predecessor, the HIDB, was established because this national approach did not work for the fragile economy of the Highlands and Islands. There is no reason to suspect that it will work any better, now.
“These proposals, which centralise power, will diminish the important role of HIE.”
An spokesman for the latter responded: “The HIE board has welcomed Professor Crerar’s recommendations, with the following observations.
“It would ensure a HIE board effectively remains in place. HIE’s budget would continue to be set by Scottish Government ministers, with the agency exercising the same level of autonomy it has at present.
“This includes implementing its own operating plan to reflect the unique opportunities and challenges of the Highlands and Islands.”
