Cut costly layers of Business Gateway red tape say MSPs

OFFICIALS behind Business Gateway have been ordered by MSPs to strip out costly bureaucracy and delay awarding the latest round of contracts to allow small firms a say over how the services are run.

The Scottish Parliament’s economy, energy and tourism committee has demanded that Cosla, which oversees the tendering process for Business Gateway contracts, puts the brakes on the latest round of awards to allow for a full consultation.

The committee, headed by Gavin Brown MSP, said the success of Scotland’s army of small firms will be vital to pulling the economy out of the “current stagnant period” and that Business Gateway, in turn, will be key to increasing the country’s start-up rate and ensuring SMEs survive and expand.

Although MSPs conceded that the current Business Gateway structure has produced some good work, they warned there were still “aspects of the current system which must be improved prior to the contracts being renewed”.

In particular there are concerns over the complex governance structure, which involves a maze of boards and working groups. In total, there are nine bodies involved in the current system, including the Business Gateway Scotland Board, the Business Gateway National Unit and the Business Gateway Operational Network.

The committee argued that the various governance bodies are “far too numerous and resource intensive which could divert scarce resources from the key aim of directly supporting businesses”.

The build-up to the tendering process is already under way, with local authorities having submitted their views on what services they can deliver and what should be contained within the latest contracts. There are various other stages before the official 55-day procurement and tender process kicks off in February.

In a report published yesterday following several parliamentary hearings, the committee said small firms have so far been given “limited” opportunities to specify what services Business Gateway should be delivering and how they can be improved.

Deputy committee convener John Wilson MSP said: “Small and medium-sized business[es] are the backbone of our economy. It is only by supporting them that we will turn our economy around.

“While we welcome the many successes of the BG service, there is a lot of room for improvement. BG must slim down on its bureaucracy and focus on direct support to its clients.”

Colin Borland, head of the Federation of Small Businesses in Scotland, agreed that users should be able to play a “more constructive part” in deciding what should and shouldn’t be in the new contracts.

David Valentine, chair of the Business Gateway Scotland Board, said a recent evaluation of the service gave 17,000 users the chance to offer feedback but the body noted the committee’s suggestion that further engagement would be beneficial.

Pat Watters, president of Cosla, said it looked forward to “designing and implementing” revised governance structures.