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SNP politicians mount behind-the-scenes bid to save HIE’s board

SNP MP Ian Blackford
SNP MP Ian Blackford

SNP politicians in the Highlands are working behind-the-scenes to try to broker a deal to save the region’s business agency from a central belt takeover.

The Press and Journal understands that high-profile Nationalist MPs and MSPs from the north are lobbying Holyrood ministers to look again at their plans for Highlands and Islands Enterprise (HIE).

The Scottish Government provoked fury this week by confirming that the dedicated board for the agency would be scrapped and replaced by a national panel overseeing several organisations.

It was claimed that the move would undermine 50 years of progress in the Highlands and sound the “death knell” for HIE, as opposition politicians rounded on the SNP administration.

Today, the Press and Journal launches a “Keep HIE Local” campaign, and has already secured the backing of senior figures in the region.

It is understood that many of the north’s SNP representatives privately have reservations about the board’s abolition and are pushing for an agreement to keep oversight of HIE in the Highlands.

Ross, Skye and Lochaber MP Ian Blackford said: “I understand what the government is seeking to do with the overarching strategy, in as much as it’s about creating the circumstances so we can fully develop sustainable economic growth in Scotland.

“That’s an important element. But in order to do that the integrity of HIE shouldn’t be impaired.

“It’s clear that HIE is an organisation that has in many ways very much achieved in its objectives, and is much-loved in the Highlands and islands.

“As a local MP I would be wanting to participate in a consultation that supports what the cabinet secretary wants to do but at the same time have local accountability for Highlands and Islands Enterprise.”

HIE celebrated its 50th anniversary last year, with its forerunner the Highlands and Islands Development Board having been established in 1965 in an attempt to tackle the region’s high unemployment and dwindling population.

The agency, which has just moved into £13million headquarters at Inverness Campus, claims to have played a part in growing the population by more than 20% since its creation, while rebalancing the local economy.

HIE’s work last year was estimated to have helped create or retain 855 jobs in the region, including 124 in “fragile areas”, while securing £111million in foreign investment.

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.

Deputy First Minister John Swinney provoked a furious response this week when he confirmed the Holyrood government’s intention to back the plan.

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

Highland Council leader Margaret Davidson said the issue was raised at a meeting of local government body Cosla yesterday.

She added: “On the HIE cuts, I do have very substantial fears about what it’s going to mean for the development of economic progress in the Highlands and islands.

“We need to know from government how we’re going to be represented on this national board. We need to know exactly where we’re standing. HIE has served us well.”

Mrs Davidson said that she intended to write to Economy Secretary Keith Brown to demand answers.

A Scottish Government spokesman said: “We recognise the different social, economic and community development challenges facing the Highlands and islands which is why we will maintain dedicated support which is locally based, managed and directed by HIE.

“However, we also want to ensure the Highlands and islands benefit from better national co-ordination with organisations like Skills Development Scotland to provide the best possible support to business, which is why we plan on establishing a strategic board for the whole of Scotland to ensure every part of Scotland is able to play a part in securing our ambitions for a more prosperous and inclusive Scotland.”