Tories in call to devolve Enterprise quango powers to councils

SCOTLAND'S local economic development companies should be scrapped and "the bulk" of Scottish Enterprise's functions handed to councils, the Scottish Conservatives said yesterday.

Murdo Fraser, the party's deputy leader, said the quango should "at least for now" retain responsibility for Scottish Development International, its overseas arm, and the "co-investment fund" - which invests in new businesses.

But in a speech in Edinburgh, Mr Fraser asked whether the 12 local enterprise companies across Scotland should be abolished, leaving local authorities "to adjudicate on their own needs". He concluded: "I suspect the answer is yes."

He said councils were better placed to decide local strategies - perhaps putting more money into skills and training than "handing out grants to existing businesses". Mr Fraser added that councils would be accountable to local electorates and the "vast sums" of money currently being "poured into" Scottish Enterprise would be reduced.

Willie Dunn, a Labour councillor in West Lothian and economic spokesman for Scotland's councils, said: "I welcome the recognition of the potential for an increased local council role in local business development."