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Decision day for HIE: Intense pressure for Scottish Government to make U-turn

SNP depute leader Keith Brown.
SNP depute leader Keith Brown.

There is intense pressure on the Scottish Government to announce a U-turn today on its plan to centralise control of development agency Highlands and Islands Enterprise.

Ministers have previously signalled that they want to replace its board with a new nationwide panel to oversee all Scottish skills and enterprise agencies.

HIE will learn its fate in a statement from Economy Secretary Keith Brown.

Opponents have condemned the timing of the announcement – the last day of the parliamentary term before Easter – claiming it would leave insufficient time to scrutinise a raft of important ministerial statements expected on the same day.

The Scottish Government sparked a storm last year by announcing the proposed reform – with opposition parties, former agency chiefs, business leaders and trade unionists backing the Press and Journal’s Keep HIE Local campaign.

They fear the move would undermine 50 years of success in the Highlands and Islands.

The concerns were not allayed by a recent report by HIE chairman Lorne Crerar, who backed the Scottish Government’s proposed shake-up but called for the retention of local “delivery boards”.

Scottish ministers insist the proposals will strengthen all of the agencies.

Highlands and Islands Labour MSP David Stewart warned yesterday against the proposed “downgrade”.

He said: “We’re totally opposed to any move to centralise the board. The economy secretary has so far been deaf to the opposition, with real unease from some of his own MSPs.

“We’ve had the control rooms of the fire service and police service centralised. Enough is enough.”

Edgar Balfour, development officer for Orkney Food, Drink and Crafts, feared a further dilution of influence.

He said: “There seems a move towards that generally with the current administration. We’ve already lost enterprise companies. What appears to be a further dilution would not be welcome.”

Speaking ahead of his statement, Mr Brown said: “We have reflected on the proposals and views expressed by parliament, stakeholders and agencies over the last few months and look forward to setting out more details of our plans to parliament.

“This is one part of a wide-ranging programme which will improve services for businesses and individuals across Scotland. It is a chance to address the concerns raised and to lay to rest some of the speculation that has surrounded this issue.

“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.”