GRAY: SALMOND RETHINK SNP 'MADNESS' - RESTORE HIE BUDGET
19 August 2009
Labour leader Iain Gray today accused the SNP of "systematically taking apart one of Europe's most successful development agencies" and called on the First Minister to restore immediately "the massive cuts" made to the HIE budget .
During a meeting with Inverness Chamber of Commerce, Iain Gray, MSP, said:
"The SNP’s massive cuts to the HIE budget hit communities right across the Highland and Islands.
"They have meant an almost 50 per cent reduction in the projects able to get support in this and coming years.
"It is madness especially during the recession when communities right across the region are facing tough economic times.
"The SNP have systematically set about taking apart one of Europe's most successful development agencies and wrecking the approach to economic and social development.
"The Scottish government need to make a u-turn now and support HIE to the hilt, not incapacitate them.
"The sheer scale of the reduction in the number of projects is unprecedented. If the First Minister really cares about Highland and Islands he must rethink this madness now.
"One of the reasons HIE has been so successful over the years was it could support a wide range of small scale community initiatives.
"That activity was the envy of the rest of Scotland. Instead of the SNP government raising standards across Scotland to the level of HIE's success, it set about levelling down HIE.
"In the last years of the Labour administration the spending on Strengthening Communities grew to almost £17 million a year, but is now set to fall to some £14m plus.
"The community projects that HIE used to be able to support have been great value for money.
"They only cost HIE some 6 per cent of their Strengthening Communities budget, but it gave community projects vital support from which they can lever out cash from other funding sources, and it releases community initiative and helps build community confidence.
"The effect of these projects ripples out across the local economy.
"The Scottish Government's ill-considered action has meant the HIE will be strengthening fewer communities.
"That is a terrible state to reduce HIE to.
"It is from these small beginnings that so much community success and confidence has been built by HIE over the years.
"Community organisations have been forced to go to others for funding, like the councils or to funds that emerge from the Olympics and Commonwealth Games legacy.
"But we all know the councils are facing massive cuts in service spending and the legacy funds for the Games are years away."