SCDI Highlands chief says 'no support' for agencies merger

A MERGER of Scotland's two economic development agencies would not be good for the country's economic growth or wellbeing, a business leader warned last night.

Joe Moore, chairman of the highlands branch of the Scottish Council for Development and Industry, said that although there was potential for "efficiencies" to be made, SCDI members did not support a merger of Highlands and Islands Enterprise with Scottish Enterprise.

Moore, who was speaking at SCDI's highlands' annual dinner in Inverness, said: "Yes, there is potential for more shared services and efficiencies - note shared, not centralised - and not just only the enterprise networks, but across the public sector.

"Businesses do want more clarity about business support and responsibility for delivery of the wider economic development strategy. But SCDI does not believe that break-up of HIE or merger with its far larger counterpart would maximise this region's potential or its contribution to national sustainable economic growth and wellbezing."

Next week the Scottish Parliament's economy, energy and tourism committee will launch a review of the enterprise support networks and has asked the question whether Scottish Enterprise and Highlands and Islands Enterprise should be merged into a single agency.

Moore said the SCDI "welcomed" the inquiry but argued that the Highlands and Islands faced "distinct economic challenges and needs from the rest of Scotland" and that HIE had "deep expertise and commitment" to the region.

SCDI Highlands and Islands said it had found "no support" among its members for a merger.