THE SNP has suffered a second Holyrood defeat over a “ministerial power grab” which would centralise key functions of Scotland’s enterprise and skills agencies.
A Tory motion demanding protection for the board of the Scottish Funding Council, the national body for colleges and universities, was passed by 63-62 votes.
Opposition MSPs rejected against another aspect of the Enterprise and Skills Review in January, demanding continued autonomy for Highlands & Islands Enterprise board.
Ministers want to bring Skills Development Scotland, Scottish Enterprise, Highlands & Islands Enterprise and the Scottish Funding Council under one Scotland-wide Strategic Board.
Current agency boards would be retained as mere "delivery boards", prompting fears their powers will be greatly reduced.
Although neither vote is binding, the indicate ministers will need to rethink their plans if they are to translate them into legislation.
Tory Liz Smith, whose successful motion expressed “deep concern” at the fate of the SFC board, said: “This is the second defeat for the Scottish Government on its plans to abolish the boards of the enterprise, skills and education agencies.
“As such, the message from the Scottish Parliament could hardly be more blunt.
“If the SNP respects democracy it will admit it has got this all wrong and think again.”
Labour MSP Daniel Johnson said the government’s plans for a super board “threaten to be unworkable, are certainly unclear and certainly threaten the independence of our universities".
LibDem Tavish Scott said a “ministerial power grab threatens the independence of the SFC".
Higher education minister Shirley-Anne Somerville insisted: "We will maintain a national strategic body which allocates funding independently of ministers to our colleges and universities and for research. This reform... can help put Scotland among the top performing OECD nations and I will work with MSPs across the chamber and stakeholders beyond to achieve that goal."
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