Autumn Conference - Economic Development (Jim Hume)

Autumn Conference - Economic Development

October 11, 2008 10:23 PM
By Jim Hume MSP

Conference,

I'm grateful to Joan Mitchell and Galloway and Upper Nithsdale Libdems for the opportunity to speak on this important subject, and congratulations to them on bringing their motion to conference.

Economic development is key in bettering the future of any region, something which I've said many times.

But to ensure effective development and regeneration, people are needed on the ground, making decisions based on local needs and identifying opportunities for that area and delivering those opportunities with a dedicated budget. As Joan has said, the SNP's first year of government has seen the demolition of the Scottish Enterprise network and visitscotland.

As an ex board member of Scottish Enterprise, my great concern is that the SNP Government's restructure has resulted in the loss of local decision making in Scotland. We now have regional operations with 'advisory boards', but no delegated authority to determine where money is spent. Local areas need their own local enterprise board with delegated, decision making powers - decisions should be taken locally, not centrally from Glasgow or Edinburgh. Local accountability ensures locally appropriate delivery in every region in Scotland.

It's vitally important that these regional operations are given the power to react to local situations and choose where money would best be spent to suit local needs. There is also a risk that business-minded individuals will not be prepared to volunteer their time to sit on advisory boards with no little or no decision making authority, therefore, we run the risk of losing that expertise.

Scotland is a nation of small and medium sized businesses, a view was endorsed by the OECD report which placed great emphasis on the development and support of small to medium sized businesses as well as on creating new economic opportunities such as tourism and renewable technologies for example.

Business support and advice provided by Scottish Enterprise has proven invaluable where advice or relevant business services locally in rural areas might not be readily available. The Scottish Enterprise network in its previous form was a particularly valuable resource because it was highly localised and provided essential advice, investment and support based on the very specific knowledge of the local economy and challenges faced. The fact is that business start-up rates are dropping. The SNP's cut to enterprise and tourism network budgets is the wrong decision for Scotland's economy.

I fear that the local economic networks which would have been strengthened under the old LEC system, are now being neglected and businesses suffering as a result. Removing the LECs and local boards, each with local decision-making powers, and replacing them with only six regional operations the invaluable resource of having very localised advice, support and investment will be lost and regrets in particular that the local decision-making powers with the inclusion of private sector board members with real business experience and knowledge will be removed.

Fact - the economy will not grow by removing local business expertise in favour of centralised, civil servant led decision making.

Fact - by centralising Scottish Enterprise and the existing regional operations, the Scottish Government has reduced SE's and Visitscotland's scope, budget and accountability in supporting small businesses and has effectively taken away local decision making which is key to successful local delivery of economic strategies and benefits.

The SNP's ill considered move towards a policy of centralising essential business and tourism development services is nothing more than folly and will do nothing for Scotland's economy and future opportunities.

The reduction in local decision making and the real terms cuts in the budgets of Scottish Enterprise and Highlands and Islands Enterprise present a serious threat to business start ups and growth across the tourism industry from the South of Scotland to the Highlands and Islands.

I urge conference to support today's motion.

Thank you

A liberal voice for the South of Scotland