Chamber
Plenary, 06 Jul 2000
06 Jul 2000 · S1 · Plenary
Item of business
Enterprise Networks
I welcome the minister's certainty of pronouncement that the talking will stop. Although that is a worthy aspiration, I fear that, as long as we have politicians in Scotland, it is one that will never be implemented in practice.
I join John Swinney in thanking the minister for the early copy of his statement. There is much in the statement that is helpful and positive. However, I will share a reservation. The statement is entitled "Statement for launch of the enterprise networks review interim conclusions". I looked for something meaty; something I could grasp. I thought that nuts would be cracked, and kernels would appear. However, the statement falls slightly short of what I had hoped for in identifying the objectives of the announcement. I will draw attention to certain features of the statement and ask three specific questions.
The minister said:
"The outcome-led approach has to be a top priority. We should be adding value to the economy and getting value for the taxpayer."
I support that priority, as it is very important. Will the minister confirm that an outcome-led approach is synonymous with customer-driven requirements? In this case, the customer is the enterprise sector of Scotland—our businesses need to know where they are. Will the minister also confirm that there is not a danger of the whole brave new world of review of the enterprise networks being a mere systematic substitution of one form of bureaucracy for another? It is important that the minister can reassure the business community about that.
I listened carefully to what the minister said about structural change. Page 7 of his statement states:
"Structural change will be a distraction of management effort from delivery of our vision and strategy. Structural change misses the point. The focus is on customers, not on structures."
I agree with that conclusion, but I am slightly less easy with the definition.
Later on in the statement, the minister says that he is engaging in structural change of the local enterprise companies. Is it appropriate to have an unacceptable level of the enterprise budget being spent on administration? Of itself, that may not merit structural change, but it does merit careful examination of what is happening in the provision of enterprise services through our enterprise network.
Page 9 mentions the minister's intended treatment of the LECs. The statement says:
"I will remove the anomaly of the LECs' status as companies limited by guarantee."
I am, however, unclear what will replace the LECs' structure. There is a need to reassure not only the people employed in our LECs, who in many cases do a very good job at local level, but also local business communities that they are not losing out on an essential point of contact with like minds, and that they will not be confronted with some massive bureaucracy emanating from Bothwell Street.
Finally, I am reassured that the minister welcomes certain aspects of the report of the Enterprise and Lifelong Learning Committee on business development at local level. The minister embraces, in particular, the concept of local economic forums. However, is it not the case that the whole process would make a lot more sense if we waited until the autumn, so that the minister could give his full response to the report? Then, not only the Enterprise and Lifelong Learning Committee, but the business people of Scotland would know how all the bits of the jigsaw fit together. There is a distinct danger that this fragmented approach will lead to a dislocation of effort and, I suspect, an incoherent perception among the business community of what the minister is trying to do, however worthy it may be.
I join John Swinney in thanking the minister for the early copy of his statement. There is much in the statement that is helpful and positive. However, I will share a reservation. The statement is entitled "Statement for launch of the enterprise networks review interim conclusions". I looked for something meaty; something I could grasp. I thought that nuts would be cracked, and kernels would appear. However, the statement falls slightly short of what I had hoped for in identifying the objectives of the announcement. I will draw attention to certain features of the statement and ask three specific questions.
The minister said:
"The outcome-led approach has to be a top priority. We should be adding value to the economy and getting value for the taxpayer."
I support that priority, as it is very important. Will the minister confirm that an outcome-led approach is synonymous with customer-driven requirements? In this case, the customer is the enterprise sector of Scotland—our businesses need to know where they are. Will the minister also confirm that there is not a danger of the whole brave new world of review of the enterprise networks being a mere systematic substitution of one form of bureaucracy for another? It is important that the minister can reassure the business community about that.
I listened carefully to what the minister said about structural change. Page 7 of his statement states:
"Structural change will be a distraction of management effort from delivery of our vision and strategy. Structural change misses the point. The focus is on customers, not on structures."
I agree with that conclusion, but I am slightly less easy with the definition.
Later on in the statement, the minister says that he is engaging in structural change of the local enterprise companies. Is it appropriate to have an unacceptable level of the enterprise budget being spent on administration? Of itself, that may not merit structural change, but it does merit careful examination of what is happening in the provision of enterprise services through our enterprise network.
Page 9 mentions the minister's intended treatment of the LECs. The statement says:
"I will remove the anomaly of the LECs' status as companies limited by guarantee."
I am, however, unclear what will replace the LECs' structure. There is a need to reassure not only the people employed in our LECs, who in many cases do a very good job at local level, but also local business communities that they are not losing out on an essential point of contact with like minds, and that they will not be confronted with some massive bureaucracy emanating from Bothwell Street.
Finally, I am reassured that the minister welcomes certain aspects of the report of the Enterprise and Lifelong Learning Committee on business development at local level. The minister embraces, in particular, the concept of local economic forums. However, is it not the case that the whole process would make a lot more sense if we waited until the autumn, so that the minister could give his full response to the report? Then, not only the Enterprise and Lifelong Learning Committee, but the business people of Scotland would know how all the bits of the jigsaw fit together. There is a distinct danger that this fragmented approach will lead to a dislocation of effort and, I suspect, an incoherent perception among the business community of what the minister is trying to do, however worthy it may be.
In the same item of business
The Presiding Officer (Sir David Steel):
NPA
Good morning. The first item of business this morning is a statement by Henry McLeish on a review of the enterprise networks. The minister will take question...
The Minister for Enterprise and Lifelong Learning (Henry McLeish):
Lab
I announce this morning the interim conclusions from my review of the enterprise networks. Following on from the framework for economic development published...
Mr John Swinney (North Tayside) (SNP):
SNP
I thank Henry McLeish for his statement and the courtesy of giving advance notice of its contents.I take issue with one point that the minister made at the b...
Henry McLeish:
Lab
Sir David, you would not expect me to agree with John Swinney's analysis of the state of the Scottish economy. I am always impressed by unemployment figures ...
Miss Annabel Goldie (West of Scotland) (Con):
Con
I welcome the minister's certainty of pronouncement that the talking will stop. Although that is a worthy aspiration, I fear that, as long as we have politic...
Henry McLeish:
Lab
I thought things were going well until the end.It is difficult at times, but we must look at the bigger picture. Within a year, we have had the first-ever fr...
George Lyon (Argyll and Bute) (LD):
LD
On behalf of the Scottish Liberal Democrats, I welcome the minister's statement. I want to consider more closely the Executive's announcement that it is to s...
Henry McLeish:
Lab
I agree with much of what George Lyon has said. First, I want to work out the guidance that we provide for the creation of the economic forums. There are exa...
The Presiding Officer:
NPA
In theory, we have only just over a minute for back-bench questions, but as it is an important statement, I will let the discussion run on a bit. I urge memb...
Marilyn Livingstone (Kirkcaldy) (Lab):
Lab
I welcome the minister's statement and the changes to the structure of Scottish Enterprise. I was going to ask a very similar question to that asked by Georg...
Henry McLeish:
Lab
I was absolutely determined to ensure that, with these changes, we did not lose the business focus. That is why I told Annabel Goldie that, although we have ...
Fergus Ewing (Inverness East, Nairn and Lochaber) (SNP):
SNP
By what date will the forums be established and who will serve on them? Will the business and voluntary organisation voice be in the majority? If not, how wi...
Henry McLeish:
Lab
With the greatest respect I can muster, I have to say that nothing Fergus Ewing ever says in this Parliament surprises me. When we talk about raising the eco...
Mr Swinney:
SNP
The same question?
Henry McLeish:
Lab
Yes, indeed; the same question, which I answered.
Mr Swinney:
SNP
Slightly more.
Henry McLeish:
Lab
John Swinney says, "Slightly more" but he did not finish the sentence—and I know why.
Mr Swinney:
SNP
Slightly more tough.
Henry McLeish:
Lab
Slightly more irrelevant. If one answers a question, one expects some people to absorb the answer.That said, I will try to keep consensual.
The Minister for Children and Education (Mr Sam Galbraith):
Lab
Why?
Henry McLeish:
Lab
I refer Fergus Ewing to my answer to George Lyon.We want to discuss with key players and partners the issues that Fergus Ewing has raised. My target is to ge...
Helen Eadie (Dunfermline East) (Lab):
Lab
I welcome the minister's statement this morning, particularly its reference to changing the legal status of LECs. I saw a ripple of pleasure among my Labour ...
Henry McLeish:
Lab
I have been in correspondence with Helen Eadie on the co-operative idea. I hope that it is taken further as a developmental idea at a local level. One of the...
Alex Neil (Central Scotland) (SNP):
SNP
I ask the minister to set realistic expectations of what the enterprise network can do. He says that it will be charged with closing the productivity gap, th...
Henry McLeish:
Lab
I have partly answered Alex Neil's last point already. We have changed the name to local economic bodies. As a matter of urgency, we will have a discussion a...
Irene Oldfather (Cunninghame South) (Lab):
Lab
I welcome the minister's statement. Does he agree that to foster the dynamic enterprise environment that he has spoken about, we must do two things: foster e...
Henry McLeish:
Lab
I agree entirely with Irene Oldfather's comments. We are developing new ideas for taking entrepreneurship into primary schools and right through to the unive...
Mr Mike Rumbles (West Aberdeenshire and Kincardine) (LD):
LD
The minister made no specific mention of our local enterprise trusts. Kincardine and Deeside Enterprise Trust, which is in my constituency, is concerned abou...
Henry McLeish:
Lab
I will make two points about Mike Rumbles's comments on trusts. Yesterday, we considered the partners who will contribute to the business gateway. The trusts...
Nick Johnston (Mid Scotland and Fife) (Con):
Con
We thought, when we came to the chamber this morning, that we might cross the rubicon, but we are actually on a stepping stone in the middle. It would be chu...