This item was published during the term of a previous administration that ended in April 2007
A sharper business focus for local enterprise companies (LECs), the creation of economic forums to cut out duplication and waste by local agencies and tough performance targets are among the headline conclusions from the review of the enterprise networks, Henry McLeish said today.
Each local forum will co-ordinate action to remove barriers to economic opportunities. The forums will be charged with securing:
LECs, freed of red-tape, will concentrate on the key challenges identified for the enterprise networks. These are reducing:
The conclusions build on the objectives set out in the first national framework for economic development, published last week, and the changes already initiated in the Scottish Enterprise network. Tough targets to guarantee action by the enterprise networks and the forums will feature in the Strategy for Enterprise to be published by December.
Mr McLeish, Minister for Enterprise and Lifelong Learning, described the review as "paving the way to give Scotland the means to compete and win in the global economy."
"Our Framework for Economic Development makes plain our vision for a successful Scottish economy. That success will be the engine for higher incomes, better quality jobs and social justice.
"Today I am announcing the emerging conclusions of my review of the enterprise networks. The Framework shows the way. The overhaul of the networks defines how we will deliver that prize.
"I have made it plain that we need to raise our game and meet the challenges of competing in the new global economy the way we support economic development must change. The current structure has produced success but no organisation can stand still in a rapidly changing world.
"The e-revolution requires a step change in the way we deliver economic development. More importantly, we must make sure our business community seizes the opportunities.
"I have looked hard at the best way to prepare our networks to take maximum advantage of present and future opportunities. My conclusion is that the local enterprise companies should be given a sharper business focus. At the same time there is a need to improve co-ordination at the local level between all the agencies which have an interest in producing the conditions needed for business to thrive.
"The model we have developed will meet these aims. It is not a slash and burn exercise. It builds on what works best, cuts out duplication and provides a focus on results.
"The wide consultation which informed our review revealed consensus about what we must do to improve. We need a better and more focussed strategy. Previous governments were unwilling or ideologically opposed to making economic development policy. Starting with our Framework for Economic Development there should no longer be a policy vacuum for the enterprise networks.
"I want to see a clear thread running from our Framework through all economic development activity at national and local level. The enterprise networks will stimulate the dynamic competitiveness of enterprise, by promoting new markets, inward investment, indigenous enterprise, innovation and commercialisation.
"The enterprise networks will help deliver a fairer Scotland, focusing on employability and employment - developing, advocating and implementing work based solutions to social problems. They will help build the organisational effectiveness of our social economy and tackle the digital divide.
"A 1980s system tackling 21 st century problems is a recipe for failure. The networks must be more customer focussed and more business orientated. Their mission is simple: to deliver jobs, new business growth and skills to deliver employment opportunity for all.
"The Strategy for Enterprise will build on these emerging conclusions. It will set clear outcome targets for these agencies, will ensure that they pull together and in the same direction and ensure that we make the most of the resources we make available. It will be a Strategy for Enterprise to build a sustainable, successful economy and to play an important role in building a fairer society and achieving employment opportunity for all.
"I back and encourage the change already initiated in the Scottish Enterprise network. Sir Ian Wood and Robert Crawford are delivering greater coherence, effectiveness and customer focus. I want to push them to go further. I want to see real improvements in appraisal and evaluation. We must have more transparency.
"The LECs are burdened by the last vestiges of the failed internal market introduced a decade ago. This creates unnecessary red tape and value subtracting transactions. I will remove the anomaly of LECs being companies limited by guarantee. This will allow greater efficiency and streamlining, switching resources from the back office to the front line. It also creates the opportunity for a significant increase in real local responsibility.
"The Highlands and Islands Enterprise Network had a different starting point and chose different ways of working. This has stood the test of time better. That message has come through very clearly from the Highland Community and I respect their wishes. I applaud the work of Jim Hunter and Ian Robertson. We will encourage them to play a bigger part in the debate on national issues. And we will press them to achieve further improvements in the Highlands.
"The Scottish Tourist Board also needs to meet the challenges in the New Strategy for Scottish Tourism. I will expect a report from the Board by October on how this will be achieved."
Members of the public can obtain a copy by contacting Ian Mitchell 0141 242 5642 or Michael McElhinney 0141 242 5818.