Subordinate Legislation
Item 2 concerns motion S1M-1646, on the draft Highlands and Islands Enterprise Area of Operation (Scotland) Order 2001. I welcome Alasdair Morrison, the minister with responsibility for the Highlands and Islands, and ask him to introduce the order and formally move the motion.
I am happy to be here to discuss the draft order that will effect a change in the boundary to the Highlands and Islands enterprise network. I will go through briefly the background to, and the practical implications of, the decision.
The enterprise networks have now been operational for almost a decade. At the outset, the decision was taken that management responsibility for Moray, Badenoch and Strathspey Enterprise should be shared between Scottish Enterprise and Highlands and Islands Enterprise. Although the issue of responsibility has been raised on many occasions, the arrangement has not been reviewed until now. That is not to say that the current situation is wholly unsatisfactory. The local economy has improved immeasurably since 1991. Employment rates are high and unemployment has reduced, despite difficulties in tourism and in other sectors.
We all want enterprise networks that are more streamlined and focused on delivering the strategy that was set for them in "A Smart Successful Scotland: Ambitions for the Enterprise Networks". They need to be more customer focused and responsive, and to form more effective partnerships that avoid duplication and overlap.
In that context, it is clear that the shared management responsibility for MBSE is an inhibiting factor. As a result, we decided to take early action. We concluded that MBSE should have a clear reporting line to a single parent body and that that body should be Highlands and Islands Enterprise. That decision has been reached in consultation with HIE, Scottish Enterprise and MBSE itself. All are in full agreement. The move has also been supported locally and I look forward to hearing from the local MP and MSP.
A range of operational and management issues, such as staffing and the transfer of assets, will need to be tackled as part of the process. In essence, such matters are for the bodies themselves to decide and they are being resolved through co-operative action by the three bodies.
On funding, arrangements will be made to transfer appropriate funds to HIE to take full account of its assumption of responsibility for MBSE. The sum to be transferred will be identified as part of Scottish Enterprise's current planning process for 2001-02, which will conclude shortly. I understand that the board will meet in about four weeks. I have also been assured that MBSE will not lose out financially as a result of the transfer.
I believe that the decision will prove worth while not just for Moray, Badenoch and Strathspey Enterprise but, most important, for people and businesses throughout the area. I commend the proposal as a commonsense measure that will contribute to the streamlining of enterprise delivery in the MBSE area.
For illustrative purposes, I have brought a map to show the committee. For the uninitiated—those who do not know the area—the change will mean that the area shown in pink on the map will move into the HIE area.
I move,
That the Enterprise and Lifelong Learning Committee recommends that the draft Highlands and Islands Enterprise Area of Operation (Scotland) Order 2001 be approved.
Thank you. I thought that the order was meant to take MBSE into the pink, not out of it.
The Subordinate Legislation Committee, which is duty bound to consider all statutory instruments, considered the order this morning. Kenny MacAskill is convener of that committee. Did the committee make any specific comments on the order?
No. Any doubts that we had had were clarified in informal discussions between our lawyers and those representing the Executive. We are satisfied that matters are proper.
Margaret Ewing, who is the member for Moray, might like to comment on the order.
I thank the convener and the minister for inviting me to attend today. I do not really need invitations, but it is very pleasant to be here.
Brevity is important, so I will avoid a series of history lessons about the background to the management division that has existed in the Moray Council area for a long time.
The presence today of Dick Ruane and Winnie Ewing—whose presence indicates the work that she has done for the HIE area—and the fact that we have the support of Moray Council demonstrate the strength of feeling that exists on the issue. We all welcome the decision, because for far too long in Moray there has been a west side story and an east side story. We hope that there will now be a united story.
I want to pursue the key issue, which is the transfer of resources. I understand that Scottish Enterprise gave £2.4 million to MBSE in 1999-2000. In 2000-01, the figure was £2.3 million. I understand that the amount that will be transferred to HIE has yet to be decided and that it will come through the budget revision in the next financial year. Will the minister give an indication of what the amount will be? We welcome the geographic change, but, obviously, we are very interested in the financial changes. The minister mentioned "appropriate funds"—will those funds be in the same range as the amounts that were given previously via Scottish Enterprise? Will they be more or less?
It will be a neutral financial situation as, in the next financial year, money will be transferred from Scottish Enterprise to Moray, Badenoch and Strathspey Enterprise. The sum will be determined by Scottish Enterprise in about a month's time. I understand that in the year 2002-03, any such moneys—or a similar amount—will be transferred to HIE and will become part of its overall block grant. As I said, I understand that the decision will be taken in about three or four weeks time, when the Scottish Enterprise board next meets.
It is important to stress that there will be neither a financial gain nor loss to MBSE: the situation should be financially neutral. To date, I have heard nothing that indicates that there are local problems. Negotiations are going well and, at the local level, things are going exceptionally well. I understand that a meeting of the local economic forum that took place yesterday progressed sensibly and maturely. I expect that the proposed changes will move along on similar lines.
I spoke to George Lyon on the subject, and he said that he is agreeable provided that no money is taken from Argyll and the islands to help pay for it.
What effect, if any, will the order have on the boundaries of a Highlands and Islands transport authority?
As Mr MacAskill knows, the Highlands and Islands transport authority is still being actively discussed. The last time that I had formal discussions on the Highlands and Islands transport authority was at the Highlands and Islands convention, last October. The subject is up for debate and determination. For example, I know that colleagues in Shetland recognise the merits of a transport authority in the Highlands and Islands, but regard their natural links as being with Aberdeen and other parts of Scotland.
We have been discussing a blueprint, but nothing has yet been determined. When we talk about a transport authority, we usually refer to the HIE map because that map is clearly defined and people know what it entails. The transport authority is an exciting development and one that I have supported personally. An awful lot is still to be determined before we have a transport authority up and running.
I am pleased about the move, as it makes more sense. Moray seems to be the kind of place that is used as a battering ram. No one wants to leave Moray: Nairn did not want to leave, but it was taken away and Keith did not want to leave, but it was taken away. Moray seems to be in the illogical situation of being infinitely desirable yet straddling the east and the west. At least the order is a step in the right direction.
I take it that there is no dissent on the question whether the order should be approved. Pity help anyone who espouses anything different.
Does the minister have anything to add before we conclude our discussion?
I have no concluding remarks, other than to thank the committee.
The question is, that motion S1M-1646 be agreed to.
Motion agreed to.
That the Enterprise and Lifelong Learning Committee recommends that the draft Highlands and Islands Enterprise Area of Operation (Scotland) Order 2001 be approved.