Controversial plans to axe the board of the north’s development agency have been dropped – but Scottish ministers are to press ahead with a new national oversight panel.
Critics say that the new body will strip Highlands and Islands Enterprise (HIE) of its decision-making powers.
But Economy Secretary Keith Brown last night insisted that “nothing is changing” for HIE – and said it could even see its remit grow under the new set up.
He also praised the Press and Journal’s Keep HIE Local campaign for helping force the rethink on previous plans to completely scrap the agency’s board.
The announcement was welcomed by HIE itself, with interim chief executive Charlotte Wright saying she was looking forward to getting on with the job once the governance issues had been settled.
But critics last night spoke out against the government’s decision – with former HIE chairman Professor Jim Hunter calling it a “retrograde step”.
Shetland MSP Tavish Scott accused the government of retaining HIE “in name but not in function”.
However, speaking after revealing the plans in the Scottish Parliament, Mr Brown told the Press and Journal that HIE may end up with more powers as a result.
He said: “Nothing is changing. The outcome of my statement today is that the current powers of HIE will remain. The board is staying.
“It may well be that HIE has an additional, expanded remit than it currently has.
“The chair of HIE will sit on the new strategic board. In addition to doing what they are already doing, they may start to do more.”
Mr Brown’s proposals broadly followed suggestions by HIE chairman Lorne Crerar last month.
He recommended that HIE and other bodies should keep their own “delivery boards” – and backed the creation of a national oversight panel to oversee its work.
Mr Brown said he did not like the term “delivery board” – and that it would not be used.
He also said the national board would be led by an independent figure rather than a government minister.
Asked if HIE’s strategy will be set by the strategic board, Mr Brown said: “It will be set by HIE’s board but they now have to have regard to the need to align and collaborate with the strategic board.
“We’re not changing the powers of the HIE board.”
“I don’t agree with the term delivery board. It will not be referred to as a delivery board.
“They will have the same powers the day after the review that they had the day before.”
He also said that it was likely that the new strategic board would not be based in any one location and would visit the Highlands and islands.
Professor Hunter – who served as HIE chairman between 1998 and 2004 – said: “I’m in no way persuaded and consider this to be a retrograde step.
“Fundamental to the success, originally of the Highlands and Islands Development Board (HIDB) and more recently HIE, is that they have chairmen and boards that are absolutely independent.”
“It is to be welcomed to some extent that HIE will retain its board but having an overarching board will have some input into strategic decision-making.
“The whole point of the HIDB and HIE was that they had they had that independence and understanding of the area’s needs and requirements.”
Labour MSP Rhoda Grant accused Mr Brown of performing a “humiliating U-turn”.
She said: “Decisions about the Highlands and islands economy are best taken locally, rather than by ministers sitting behind a desk in Edinburgh. We will watch very carefully to ensure that the strategic board does not encroach on the responsibilities of the Highlands and islands board.”
Mr Brown’s announcement was welcomed by north SNP politicians, including Kate Forbes and Western Isles representative Alasdair Allan.
It was also backed by Green MSP John Finnie who said the “focus now must be on supporting our enterprise agencies to deliver social and economic improvements”.
Charlotte Wright, interim chief executive of HIE, said: “This is an excellent outcome which represents a win-win for HIE and for Scotland.
“Under these arrangements, HIE retains its own board with unchanged powers, as we had recommended, while also gaining the ability to collaborate more effectively with other agencies and continue to influence national decision making.”
