SCOTLAND'S enterprise network is to be more accountable with a code of
practice and a new spirit of openness.
Scottish Secretary Ian Lang and Scottish Enterprise officials said
yesterday that the Lecs would adopt a code of practice that included
regular rotation of directors, a system of consultation with external
bodies and individuals in relation to filling board vacancies, and
meetings with local industry and interest groups.
There would also be discussions with local authorities and other
appropriate bodies on the company's business plan, publication of annual
performance targets and achievements, and regular briefings and public
statements on the Lec's activities.
Mr Lang told the Scottish select committee at Westminster that the
enterprise network had agreed to adopt the new system. The committee,
which is investigating the operation of Scottish Enterprise, has been
concerned that a ''jobs for the boys'' network was operating in the Lecs
and that they were far too secretive.
The issue was raised yesterday by Aberdeen North Labour MP Robert
Hughes, who said there was a potential conflict of interest and a lack
of openness in Lec activities. He praised Highlands and Islands
Enterprise, which has a policy of open declaration of its activities,
and questioned Mr Lang on whether this should be extended.
The Scottish Secretary told him: ''I do welcome the steps taken by
HIE, and indeed I welcome any steps that improve openness and
transparency, provided that is compatible with commercial
confidentiality.''
Mr Lang strongly defended the way in which the Lecs operated, claiming
that the right balance had been struck between the central,
co-ordinating role of SE and the more detailed decision-making on the
use of resources which could be done at local level.
Scottish Enterprise chairman Professor Donald MacKay, presenting the
organisation's third annual report in Glasgow yesterday, said they were
following the lead of the private sector in adopting the code of
practice.
''We are doing what's been done in the private sector. Cadbury
produced a code of practice. We intend to go down the same route in
Scottish Enterprise ... there will be a code of practice against which
people can consider the performance of the LECs.''
The past year had been a good one for the organisation and the
Scottish economy generally, Professor MacKay said. The enterprise
network was performing well in terms of exports, inward investment,
improved training and environmental spending.
''Our general view is that we are expecting a continuation of the
recovery and indeed, a strengthening of the recovery throughout this
coming year,'' he said.
According to SE figures, Scotland attracted more investment from
overseas than any other part of the UK last year. In all, a record
number of 95 projects which created or secured more than 11,000 jobs and
involved #587m of planned investment were brought to Scotland.
''It's been a very good year. We have had an unusual and very high
success level in the inward investment area,'' said SE chief executive
Crawford Beveridge.
The agency channelled 86% of its #451m budget into the local
enterprise network and helped 3462 new businesses to get off the ground.
Welcoming the report, Scottish Industry Minister Allan Stewart said:
''Scottish Enterprise has demonstrated the capacity to respond with
skill and imagination to the challenges of fast-changing circumstances
... we now see an established and effective network in place.''
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