Scot Govt challenged over the future of HIE

The Scottish Government has been urged to allay concerns that its public service reforms could become “yet another attempt to centralise Highlands and Islands Enterprise”.

Far North MSP David Green, the Liberal Democrat spokesperson for Public Service Reform, challenged the Scottish Government’s Ivan McKee MSP during oral questions this week [Wednesday 9 September].

The Scottish Government’s Programme for Government includes a commitment to “identify the most effective governance and structures” for Regional Economic Partnerships – “echoing proposals from ten years ago to abolish HIE’s board”, according to Mr Green.

The budget of HIE (Highland and Islands Enterprise) has been subject to numerous cuts, and the number of small and medium enterprises across Caithness, Sutherland and Ross fell by over three hundred between 2015 and 2024.

Speaking in Holyrood, Mr Green said Highlands and Islands Enterprise has for years “successfully worked with communities, businesses and social enterprises to support growth and create opportunities.”

He added: “The businesses that I represent are best served by an agency that is rooted in their communities. Does the cabinet secretary agree with that, and will he allay concerns that these reforms represent yet another attempt to centralise HIE?”

Responding to Mr Green, Mr McKee said that the move was on ensuring that there was “the right level of focus on regional empowerment to provide strategic regional entities around the country” with the power necessary to address opportunities for economic development and to empower local communities to shape their own direction.

The Cabinet Secretary added that he would be happy to engage with Mr Green as they developed their proposals.

Following the exchange, Highland MSP David Green said: “I welcome the Cabinet Secretary’s commitment to engage with me and our partners as he develops the government’s plans.

“There is clearly a need for reform, but it must never come at the expense of local accountability.

“The needs of rural communities - including rural businesses - often differ significantly from those of the central belt. I urge the government to embed an understanding of those differences in its approach.”

ENDS.