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HIE board survives after Scottish Government U-turn on shake-up


By SPP Reporter

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Highlands and Islands Enterprise has survived proposals for a major shake-up that many feared could drastically dilute its effectiveness
Highlands and Islands Enterprise has survived proposals for a major shake-up that many feared could drastically dilute its effectiveness

THE board of Highlands and Islands Enterprise (HIE) will be retained and will keep the same powers and functions, it has been pledged.

Scotland’s economy secretary Keith Brown has confirmed a single board will be created to oversee enterprise and skills agencies but said individual boards will retain powers.

One opposition MSP in the Highlands described it as a "humiliating U-turn" following a major campaign to keep conrol local.

In a statement made to the Scottish Parliament yesterday Mr Brown said each agency, including Scottish Enterprise, the Scottish Funding Council and HIE, will be expected to follow national aims for “improved delivery” but that they will not lose any decision making powers.

This follows a review into the future of the agencies, which included a report by HIE chairman Professor Lorne Crerar, who backed the shake up but called for the retention of local boards.

Mr Brown said: “There was a clear need, shown from the review, to better align the agencies.

"It was also clear there were concerns about how this would impact agencies and I know the alignment must balance the priorities of individual agencies.

“This will establish a single board with the aims outlined in Professor Crerar’s report, including wider collective leadership to ensure improved delivery.

“It will be led by an independent chairman and each agency will have a seat at the table through their chairman.”

But Mr Brown also addressed the fears about centralisation and power being removed from the Highlands.

“There will be no change to the main functions and structures already held by current agencies,” he confirmed.

“The boards of HIE and other agencies will remain but with the expectation that they will align their delivery with the others to improve our economy.”

When asked if HIE will be able to continue to deliver locally-based support, Mr Brown had this to say: “HIE will continue to be locally based, managed and directed and will have a board with powers remaining relatively unchanged.

“There is no intention to change its functions or structures.”

Labour Highlands and Islands MSP Rhoda Grant said: "

Scottish Labour Highlands and Islands MSP Rhoda Grant said: "This is a humiliating U-turn by Keith Brown, and caps off a bad week for him after he had to apologise for the secret deal with a Chinese firm and the announcement of a further delay to the opening of the Queensferry Crossing.

"It is welcome that the Nationalists have scrapped their plan to centralise control of the Highlands and Islands Enterprise. The independence of the board should never have been put at risk in the first place.

"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."

HIE started out as the Highlands and Islands Development Board some 50 years ago, becoming HIE in 1990

The Scottish government's economic and community development agency for the north and west of Scotland has a role to help to "generate sustainable economic growth."


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