By Steve Bargeton, political editor

FIRST MINISTER Alex Salmond yesterday announced the biggest shake-up of the public sector since devolution—scrapping or merging 52 bodies.

The Scottish Crop Research Institute at Invergowrie, near Dundee, is to merge with the Macaulay Institute in Aberdeen.

Mr Salmond told MSPs that while it may not be the long-promised bonfire of the quangos it is “a good going blaze.”

The SNP Scottish Government came to power in May promising to cut red tape and bureaucracy.

In October 2007 there were 199 public bodies. That number will be cut by 26% over the life of this parliament under the proposals outlined yesterday.

Some organisations will disappear, others will be merged and some functions will be taken into central government.

There will be no compulsory redundancies.

Mr Salmond said his plans will “make a significant contribution” to efficiency gains of £25 million demanded of the bodies affected.

But the main effect will be on those who use the public bodies.

If private sector productivity rises by just 1% as a result of cutting red tape, it will boost the Scottish economy by around £800 million.

“Looking at the landscape of Scotland’s public organisations today, we see a confusing array of organisational roles, remits and functions,” said the First Minister.

He called it “a complex system” risking “becoming ever more concerned with talking to itself about procedure instead of improving services and speaking directly with citizens to address their needs.”

Mr Salmond gave specific examples of how the proposed changes will make life simpler for those who use public bodies.

He said it requires 29 separate local processes, 63 possible meetings and 108 documents to discuss needs and agree action for a single child.

It will be streamlined by the changes announced yesterday and enhanced by changes to the children’s hearing system.

On the detail, Mr Salmond said all marine management functions are to be brought together into a single body.

The SCRI and Macaulay Institute will become a single body “enhancing international competitiveness.”

The two organisations are “encouraged to come together” to form a single environmental and rural research institute by 2010 or 2011.

The Fisheries Electricity Committee and the Scottish Environment Protection Agency will become one and the Deer Commission will merge with Scottish Natural Heritage.

The Scottish Agricultural Science Agency is to become part of central government.

To integrate planning, architecture and building standards, the Scottish Buildings Standards Agency will be part of the government’s new directorate for the built environment.

The Historic Environment Advisory Council, the Building Standards Advisory Committee, the Scottish Records Advisory Council and the Scottish Industrial Development Advisory Board will be abolished.

The government proposes to establish the General Teaching Council for Scotland as a self-regulating, profession-led body along the lines of the General Medical Council.

Outlining the effect of these and other changes to the public sector already announced, Mr Salmond said, “I have to tell the chamber the firm proposals the government is presenting do not actually meet our commitment to a 25% reduction in the number of national public bodies— they will exceed it at 26%.

“And if we include the reduction of justice of the peace advisory committees, which took effect in December but was planned by our predecessors, this will mean a 39% reduction in the 199 organisations.

“By 2011 this will bring the number of national public organisations to around 120, by some considerable distance the lowest number since devolution.”

But Labour leader Wendy Alexander claimed the SNP’s own billing on quangos is not being lived up to, and that since May the Scottish Government has set up 24 new bodies.

“The SNP boast that they would create a bonfire of the quangos doesn’t stand up to close scrutiny,” she said.

Ms Alexander added, “It’s less of a bonfire and more of a damp squib.

“They have done little to demonstrate that their claim to be quango-cutters is anything more than overheated rhetoric.

“It is right to ensure value for money for the public purse but there is an absence of detail on how these efficiencies will be made.

“If this is nothing more than a rebadging exercise, then the savings promised will not be forthcoming.

“Alex Salmond needs to ensure that today’s statement means concrete savings for the taxpayer, not just a PR exercise in renaming agencies.”

Scottish Tory leader Annabel Goldie said, “What we saw here today is just 52 cards being reshuffled, redealt and remaining at 52 cards.

“My party supports the principle of a reduction in the size of the state but it is not achieved by renaming, rebadging, mergers and amalgamations.

“The real test about whether this ‘bonfire’ was just craftily-spun candyfloss or a statement of substance and a real rolling-back of the state was whether or not the First Minister could confirm there would be a 26% cut in costs to the taxpayer.

“Sadly the First Minister didn’t know the answer or, far more likely, was embarrassed to admit the truth.

“The question that every taxpayer wants answered is how many fewer people will be employed and how much money will be saved to the public purse?”

CBI Scotland’s assistant director David Lonsdale said, “The hefty rise in funding growth for Scotland’s public sector witnessed over recent years is coming to an end, so it is understandable that the SNP administration is trying to slim down the plethora of public bodies in an attempt to get better value for taxpayers’ money.

“We have consistently argued that the public sector can and ought to be a better catalyst for growth, and this appears to be a welcome step towards achieving that goal.

“However, the administration ought to pursue a bolder reform agenda, one which involves a far greater range of public services being delivered by the private sector.”

Professor Peter Gregory, the director and chief executive of SCRI, said, “We very much welcome the First Minister’s statement, particularly the recognition that Scotland’s research institutes are capable of competing internationally.

“This is absolutely in line with the future that SCRI sees for itself.”

He spoke of SCRI’s partnerships in 20 countries, including important links with China.

Professor Gregor went on, “Independent research commissioned last year indicated that SCRI’s research and development activities were contributing £160 million of business every year in the farming, manufacturing and retail sectors in Scotland and the rest of the UK.

“That’s £14 for every £1 invested in us.

“Already we have published some of the results of our work on climate change, sustainable development and biodiversity.

“SCRI supports the national aspiration to be greener, healthier, wealthier and smarter.

“We are very much looking forward to working with other research providers in Scotland.”

Phil Taylor, head of communications at SCRI, confirmed there are “no immediate job implications.”

He said, “There have been no concrete discussions yet.

“They will take place in the future and will involve the board of governors of both organisations.

“It’s the start of a journey, not the end of one.

“We do good stuff and there’s no doubt we will go on doing that.”

The SCRI employs around 350 people at Invergowrie, where it has been since 1982.

It was formed from an amalgamation of the Scottish Plant Breeding Station and the Scottish Horticultural Research Institute.

The Macaulay Institute has 300 staff and postgraduate students and researches the sustainable use of land and its natural resources.

Michael Gibson, chairman of the institute, said, “The board of the Macaulay Institute is happy to consider such an idea.

“However, neither the Macaulay Institute nor the SCRI are public bodies, but independent charitable organisations—thus this will not help the Scottish Government achieve their stated target of reducing the number of public bodies.

“We suggest that there is real need for a wider debate on the future funding and delivery of scientific research in Scotland, particularly with regards to the research, which provides the crucial evidence underpinning much of our public policy, as well as informing Scotland’s businesses and regulators.”