More political games

The BBC website has announced:

"Scottish Enterprise has been told it must not abolish its network of 12 local enterprise companies (Lecs) as part of the organisation's shake-up.
In a statement to parliament the enterprise minister said he supported restructuring plans but wanted to ensure local decision-making remained.
The jobs agency, which is in financial difficulty, had intended to replace the network with local advisory boards.
Unions have warned that the restructure could lead to up to 100 job cuts.
Enterprise Minister Nicol Stephen also confirmed the agency would use money from next year's budget to plug a £30m deficit."

As it happens, Holyrood Chronicles has received a leaked document of what purports to be the transcript of a meeting between the Chairman and Chief Executive of Scottish Enterprise which took place last October:

Chairman: Thanks for coming, Jack. I'm a bit worried about the expenditure forecasts for the current year. It seems that, if we keep spending as planned, we might exceed our budget for the current year.
Chief Executive: Not a chance John - it's all under control. But we've got to make the Scottish Executive think that not only will we bust our budget for 2005-06, but we will also over-commit for 2006-07.
Chairman: But Jack and Nicol will be very upset?
Chief Executive: Of course they will. But unless we play this game, we will be stuck with the budget which the Executive has allocated to us for next year - and that won't allow us to do the things that we need to do. So, in terms of the expenditure papers for next month's board, we have to show an over-commitment for both the current year and for the next.
Chairman: But the Executive sees our board papers as soon as we do. They'll insist that we make cuts.
Chief Executive: Look, our board papers go to the Department. You know that Executive officials don't understand spreadsheets. By the time they work out what's happening and then inform Ministers, it will be the New Year. And, then, Ministers will agonise for at least two months before they decide to do something. I reckon that it will be March next year before they come back to us demanding cuts. And, by then, it will be too late...
Chairman: But they might still insist that we make cuts for next year?
Chief Executive: Indeed. But then we pull the usual trick. I know we've done it before but they always fall for it. We simply threaten to cut the bits of our expenditure programme that Ministers and their backbenchers like, such as the business gateway.
Chairman: Jack and Nicol are not stupid - they'll know what we're up to.
Chief Executive: Of course they will. But they also know that every other quango is doing the same thing. And, anyway, they will end the financial year with a massive underspend of £400 to £500 million, like every year in recent times. So it's no real skin off their noses...
Chairman: But what about our plan to shift our focus to the metropolitan areas?
Chief Executive: Well the extra cash for next year will allow us to throw a bone or two to the rural areas, which will keep the LibDems happy. But because the Executive is in thrall to the both the LibDem and Labour backbenches, chances are that we may have to retain the LEC network. But underneath the formal structure, we can progress our ideas for a greater focus on developing the cities. And we know that Jack McConnell really doesn't care either way...

I rather doubt if this is an accurate transcription...