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Scotland's enterprise agencies to retain own boards Scotland's enterprise agencies to retain own boards
(35 minutes later)
Highlands and Islands Enterprise is to retain its board but also work with a new strategic set-up.Highlands and Islands Enterprise is to retain its board but also work with a new strategic set-up.
The Scottish Funding Council and other enterprise and skills public bodies will also keep their boards and "have a seat" on the new strategic board.The Scottish Funding Council and other enterprise and skills public bodies will also keep their boards and "have a seat" on the new strategic board.
HIE, along with the other bodies, has been the subject of a review.HIE, along with the other bodies, has been the subject of a review.
The process has been the source of a political row with opposition MSPs accusing the Scottish government of centralisation.The process has been the source of a political row with opposition MSPs accusing the Scottish government of centralisation.
Economy Secretary Keith Brown announced the move in the Scottish Parliament on Thursday afternoon.Economy Secretary Keith Brown announced the move in the Scottish Parliament on Thursday afternoon.
'Locally based' He also told MSPs that a new enterprise agency would be set up to cover the South of Scotland and the shape of this organisation would become clearer following local authority elections in May.
He said he recognised the value of Scotland's enterprise and skills agencies but changes were needed to better support Scotland's economy. Mr Brown said he had listened to the debates on the future shape of enterprise and skills services, and recognised the value of Scotland's agencies but changes were needed to better support Scotland's economy.
He said the individual boards would continue to have the "powers and functions" and would "collaborate and align" to increasing productivity and exports.
How have opposition parties reacted?
The minister said Brexit was among the reasons for the changes.
But opposition parties said they still had concerns the new strategic board would make big decisions currently made at local level by HIE, Scottish Funding Council, Scottish Enterprise and Skills Development Scotland.
Labour's Jackie Baillie said Mr Brown appeared to have made a series of u-turns on the setting up of the new board.
She asked Mr Brown to confirm that the planned strategic board would not be statutory and said she was surprised that he would not be chairing the new group.
The minister said he believed it was important that a minister did not chair the board and these feelings had been shared by the review group.
Liberal Democrat MSP Tavish Scott also said Mr Brown's statement represented a "u-turn" away from previous plans to wind up the individual boards.
Conservative MSP Liz Smith welcomed the retention of the boards of the enterprise and skills agencies.
She asked if it would still be for parliament to allocate the funding to the Scottish Funding Council, which allocates public money to colleges and universities.
Mr Brown said there was no intention to change the functions or the structures of the council.
Green MSP John Finnie thanked Mr Brown for listening to the board of HIE and also asked for a meeting to discuss some remaining concerns about the agency.
HIE supports businesses in the islands, Highlands, Argyll and Moray.HIE supports businesses in the islands, Highlands, Argyll and Moray.
It began as the Highlands and Islands Development Board 50 years ago, becoming HIE in 1990.It began as the Highlands and Islands Development Board 50 years ago, becoming HIE in 1990.
The first phase of the Enterprise and Skills Review was published in October last year and recommended that a new national board co-ordinate the activities of HIE, Scottish Enterprise and other bodies.The first phase of the Enterprise and Skills Review was published in October last year and recommended that a new national board co-ordinate the activities of HIE, Scottish Enterprise and other bodies.
In January, MSPs voted to demand the Scottish government allow HIE to retain its own board.In January, MSPs voted to demand the Scottish government allow HIE to retain its own board.
In his response, Mr Brown said HIE would "continue to be locally based, managed and directed" under his plans.In his response, Mr Brown said HIE would "continue to be locally based, managed and directed" under his plans.
What is HIE?What is HIE?
A report was recently published on the scope, structures and functions for a new board.A report was recently published on the scope, structures and functions for a new board.
Prof Lorne Crerar's publication recommended HIE and the others retain their independent boards.Prof Lorne Crerar's publication recommended HIE and the others retain their independent boards.
HIE's work in recent years has included providing funding to upgrade a fabrication yard at Arnish, near Stornoway on Lewis, and helping to secure the future of jobs at a call centre in Forres.HIE's work in recent years has included providing funding to upgrade a fabrication yard at Arnish, near Stornoway on Lewis, and helping to secure the future of jobs at a call centre in Forres.
It is involved in the roll-out of superfast broadband to rural areas and initiatives to encourage young people to live and work in the Highlands and Islands.It is involved in the roll-out of superfast broadband to rural areas and initiatives to encourage young people to live and work in the Highlands and Islands.
HIE has also flagged up the need to better tackle gender imbalance in the workplace.HIE has also flagged up the need to better tackle gender imbalance in the workplace.
'Booming Inverness''Booming Inverness'
In 2015, it officially opened its Inverness Campus, a large area of land at Beechwood in Inverness which HIE has made available for businesses and research organisations.In 2015, it officially opened its Inverness Campus, a large area of land at Beechwood in Inverness which HIE has made available for businesses and research organisations.
Inverness College UHI built a new college on part of the campus.Inverness College UHI built a new college on part of the campus.
However, during the early stages of planning the campus, HIE was criticised by Western Isles Council - Comhairle nan Eilean Siar.However, during the early stages of planning the campus, HIE was criticised by Western Isles Council - Comhairle nan Eilean Siar.
It said the agency should be investing in fragile areas of the region and not "booming" Inverness.It said the agency should be investing in fragile areas of the region and not "booming" Inverness.