More worries for HIE after budget cut

FURTHER concerns have been raised about the future of Highlands and Islands Enterprise (HIE) after the Scottish Government confirmed it will cut its funding by £7.5 million next year.

The news comes just weeks after ministers controversially unveiled plans to ditch HIE’s regional board and create a catch-all board in the central belt overseeing HIE and Scottish Enterprise.

In Thursday’s draft budget, finance minster Derek Mackay confirmed that HIE’s budget will be cut by around ten per cent to £67 million for the 2017/18 financial year.

In a joint statement, Shetland MSP Tavish Scott and his Orkney colleague Liam McArthur said they wholly reject the government’s plans for HIE.

“Fears for jobs and any ability of HIE to support local businesses and communities will now only increase as a result,” they said.

“This is a double blow to HIE and the unique region it serves. Local MSPs should be doing all we can to fight these ill-judged and damaging proposals. That is what we will continue to do.”

Advertisement3 of 10

Shetland Islands Council leader Gary Robinson wrote to economy minister Keith Brown this week to encourage the government to rethink abolishing the HIE board.

He said the local authority had “deep concern” over the plans, which could “dilute” the service provided by the economic development agency.

Highlands and Islands Labour MSPs Rhoda Grant and David Stewart also criticised the government’s proposals.

This week they contacted every MSP, MP and councillor in the Highlands and Islands region to ask if they oppose the plans.

HIE chairman Lorne Crerar previously said the agency is in constant dialogue with the government to ensure it is “not in any way diminished and hopefully enhanced, and that the important features of our governance are replicated and not diluted in any new arrangements for the future”.