"The HIE Network model, which was established in 1991, has served the Highlands and Islands well and, as Henry McLeish commented earlier this year, has 'stood the test of time'," he said.

"Our 10 local enterprise companies and the core organisation have worked together very successfully as a cohesive Network which is efficiently co-ordinated by a strong centre, but also locally informed and empowered.

"Most of our staff are already based in the LECs and that principle is the right one. These new proposals represent a further devolution of Network jobs into high priority areas.

"We recognise the need to do all we can to help create jobs in these communities. In my view, that includes a willingness not to shy away from difficult decisions which affect our own role as an employer as well as a government agency.

"We are communicating fully with staff on these proposals and recognise that, within HIE itself, there are bound to be concerns. I value the contribution staff have made to this area over the years and I will be very sympathetic to their views on these proposals."

HIE chairman Dr Jim Hunter, who is a long-standing supporter of the principle of public sector jobs dispersal, said the agency was taking an opportunity to lead by example.

"All organisations need to evolve and the HIE Network is no exception. Scotland's economic and social landscape has changed dramatically in the last ten years. We've tried to keep pace with that change and, in most areas of our work, the record shows we've been successful. There is a risk, however, that some areas are left behind while others prosper and that's a challenge we have to address.

"These proposals will allow us to do three very important things - target our resources more effectively to assist the areas of greatest need; modernise the Network to meet the challenges of the 21st century, and take a lead in devolving jobs to remote areas.

"I am sure that, by choosing a Western Isles location for staff who perform a central function for the whole of the Highlands and Islands, HIE is setting an example of devolution in action, which others in both the public and private sectors, should follow."