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.