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Labour warn of “alarming” centralisation of Highlands and Islands Enterprise

The An Lochran building on Inverness Campus.
The An Lochran building on Inverness Campus.

Scottish Labour has warned that decisions about the north economy could be made in Edinburgh as part of an “alarming” centralisation.

MSP Richard Leonard said he was deeply concerned about the prospect of a “shift of decision making” for Highlands and Islands Enterprise (HIE) to the central belt.

The Scottish Government is currently reviewing Scotland’s enterprise boards, with one potential reform being the creation of an over-arching strategy board.

The administration insists the body would help co-ordinate efforts to boost Scotland’s economy.

But Mr Leonard, Scottish Labour’s shadow economy minister, said he was concerned decision making could be taken out of the hands of HIE.

He said: “It was a Labour Government back in 1965 which established the Highlands and Islands Development Board.

“We have consistently supported a distinctive approach to economic and social development in the Highlands and Islands and a distinctive remit and structure.

“That’s why we are alarmed by the SNP government’s review of the enterprise agencies which in phase one has concluded that there should be a supervisory board which will see a shift of decision making on the Highlands and islands economies to Edinburgh.”

Mr Leonard is visiting the region today to meet with HIE executives.

He added: “With the SNP government about to start the next phase of its review of the future of HIE and in light of Brexit I want to hear at first hand from local representatives and speak to HIE directly about the threats and opportunities they face.”

In phase one of the review, published in October, the Scottish Government announced it would create a new nationwide board to co-ordinate the actions of the agencies, including HIE and Scottish Enterprise.

Cabinet Secretary for Economy, Jobs and Fair Work Keith Brown said he was “proud” of the work of the agencies but insisted they needed reform to ensure they worked “hand in glove” with each other to boost economic output.

A Scottish Government spokesman added: “Highlands and Islands Enterprise will continue to exist.

“As part of our review of skills and enterprise, working closely with key stakeholders we will consider how the new Scotland-wide statutory board will operate.

“Current boards will continue to be involved as we develop our plans going forward.”