SCOTTISH Enterprise and the network of local enterprise companies came
in for severe criticism yesterday from organisations closely involved in
the field.
The Scottish Council for Voluntary Organisations, the Federation of
Small Businesses, and the Scottish Chambers of Commerce all put forward
critical submissions to the Commons Select Committee on Scottish
Affairs, which is conducting an inquiry into the operation of enterprise
agencies.
SCVO said that the status of Lecs as private companies obstructed
effective monitoring of their performance, and added to the trend of
''government by the unelected''.
Lec boards were self-appointing and self-perpetuating, were biased
towards traditional employers, and were unrepresentative of the wider
community. Training was increasingly being concentrated on the most able
among the unemployed, ''discriminating against those who require longer
and more expensive training''.
The FSB produced a survey which, it said, showed wide disenchantment
with the Scottish Enterprise, Highlands and Islands Enterprise, Lec
network. The federation said it still supported the system, but it
required radical new appraisal.
The FSB survey showed that:
* 46% of small businesses in the Scottish Enterprise area could not
name their local enterprise company.
* More than 75% were confused over the difference between Lecs and
Local Enterprise Trusts.
* 76% of businesses in the Scottish Enterprise area (64% in the HIE
area) would not go to their Lec as a ''first stop shop'' for help and
advice.
* Over 75% of small businesses feel remote from SE/HIE and do not
believe their interests are properly represented.
* There is deep concern at Lec directors' interests, and 72.5% (82.6%
in HIE) are inhibited from seeking advice because of that.
* 71% of small business (66.1% in HIE) believe that training is not
tailored to their business needs.
Mr Bill Anderson, FSB Scottish secretary, said yesterday: ''I am
devastated by what we found. The perception of the enterprise network is
horrifyingly low and there are major problems.
''However, we still support the concept. We are already involved in
the overall strategy of Scottish Enterprise. We are prepared to be more
heavily involved and will do everything in our power to raise the
profile of the enterprise network to a higher and more acceptable
level.''
The Scottish Chambers of Commerce said: ''When the establishment of
these organisations was proposed, Scottish Chambers particularly
welcomed the emphasis to be placed on employer involvement in both the
enterprise agencies and the Lecs.
''In the event, there is now a strong feeling that local initiatives
are being supplanted by strong central control by the agencies, whose
policies, in turn, are perceived to be strongly directed by the Scottish
Office Industry Department.
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