Council wants to take over HIE 2/9/10
Western Isles Council wants to take over Highlands and Island Enterprise because the development body is dramatically “failing the islands‘ business community.”
The council argues many of HIE’s functions would be best delivered by local authorities.
Today councillors argued that it was failing the islands and ignoring the small businesses which is the backbone of the local economy.
In a review submission of the organisation to the Scottish Government the council states: “HIE has lost touch with the business base in the Outer Hebrides.
It says HIE is called the Inverness Development Agency on the islands suggesting its investment focus is around the Highland capital “rather than the emote and fragile areas of the west Highlands and islands.”
The council says that HIE awarded just £350,000 into only 15 local businesses in Western Isles over the last 18 months to this summer compared to £3 million annually in the past.
The report points out that the rationalisation of HIE and the abolition of local enterprise companies has a huge negative effect against the islands.
There is also suspicion over the “influence Edinburgh-
The submission praises HIE’s local staff and stressed the issued focused around the altered remit of the body’s “rigid, centralised strategy” which resulted in it “no longer providing the role of local economic leader.”
Today council leader Angus Campbell said the backbone businesses of the islands’ economy like employers with four to six workers were now “lost out of the system.”
He highlighted the council stepped in to try and fill the gap but simply did not have sufficient funding to help every business which wished to expand.
He remarked upon “the amount of businesses coming to us looking for assistance which would automatically have be covered by the enterprise company.“
“We just don’t have the budget for that.”
A spokesperson for HIE rebutted the council’s criticism.
She insisted the body’s “historic commitment to the whole of the Outer Hebrides is as strong today as it ever has been.
“Per head of population, HIE has invested many times more in the Outer Hebrides than in Inverness. In the last nine years projects to the value of an average of over £9million per annum have been led and supported by the HIE local team in the Outer Hebrides.”
She highlighted: “HIE played a significant role in the successful campaign in partnership with Comhairle nan Eilean Siar to save the rocket range in South Uist.
In addition, “HIE was at the centre of the deal to secure Burntisland Fabrications (BiFab) when they signed a 12 year lease to occupy the fabrication yard at Arnish Point.”
She added: “HIE has invested over £14million in infrastructure since HIE took over the lease of Arnish which has opened up the opportunity for the Outer Hebrides to gain a foothold in an expanding global industry.
“Since 2005, HIE has approved investment of around £2.6m in Connected Communities
which has allowed NHS and Council services to be delivered more efficiently and businesses
to develop e-
HIE supported Abhainn Dearg (Red River) Distillery to establish Isle of Lewis' first whisky distillery in 170 years.
The organisation supported Breanish Tweed to grow their order books and target top of the market bespoke tailors around the world, and invested £4m to regenerate the community of South Uist since the estate buyout in 2006.
HIE is working closely to support Stòras Uibhist with their development plans (for South Uist) including Lochboisdale regeneration.
In the last month HIE has appointed Stephen Leslie as new Senior Development Manager for the Uists and Barra, providing a dedicated focus to strengthen and diversify the community's future economy.