No-one could quibble about the intentions behind the Scottish Government's overhaul, unveiled yesterday, of this country's economic development agencies. According to John Swinney, the Cabinet Secretary for Finance and Sustainable Growth, the changes that will radically affect Scottish Enterprise (SE) and Highlands and Islands Enterprise (HIE) will slice off layers of bureaucracy, fix the focus of these agencies firmly on long-term growth and be of greater benefit to business and the economy through the advent of streamlined structures. A dynamic economy is pivotal to Scotland's wellbeing and these are just the aims that need to be identified to deliver growth at the pace desired by the SNP (even if the position from which we are starting is open to dispute).

No-one could quibble about the intentions behind the Scottish Government's overhaul, unveiled yesterday, of this country's economic development agencies. According to John Swinney, the Cabinet Secretary for Finance and Sustainable Growth, the changes that will radically affect Scottish Enterprise (SE) and Highlands and Islands Enterprise (HIE) will slice off layers of bureaucracy, fix the focus of these agencies firmly on long-term growth and be of greater benefit to business and the economy through the advent of streamlined structures. A dynamic economy is pivotal to Scotland's wellbeing and these are just the aims that need to be identified to deliver growth at the pace desired by the SNP (even if the position from which we are starting is open to dispute).

Composing a wish-list is one matter. Making reality of aspiration is another entirely. Mr Swinney is confident that the Holyrood administration's blueprint will do the job for Scotland. The headline measure is the abolition of Scotland's 21 local enterprise companies (Lecs), the purpose being to cut red tape at management and delivery levels and free up their replacements to be smarter and more responsive in meeting the needs of business and boosting the economy. In their stead will be five regional bodies covering Grampian, Tayside, East and Central Scotland, South of Scotland and West Central Scotland.

These will be overseen by a slimmed-down SE, while HIE will come under a sixth single region. Both agencies will lose their remit for skills and training, which will be the responsibility of a merged Careers Scotland and learn-direct Scotland. Local regeneration will be the responsibility of councils. In addition, VisitScotland, the tourism body, will tailor its functions around the new set-up. There will be fewer pieces in the new economic development agency jigsaw (aside from the role of the 32 local authorities in regeneration) but will the final entity be more pleasing for a culture of enterprise, those responsible for delivering it and those who fund the agencies (the taxpayer)?

There are too many unanswered questions arising from Mr Swinney's Holyrood statement to provide a definitive answer. One of the biggest is the impact of the shake-up on budgets. For several reasons to do with a change in remit, SE's funding will be significantly reduced. Abolishing the Lecs and creating fewer regional bodies will, it must be assumed, have an impact on head-count at the highest levels in the network and at SE headquarters. It is known from the package awarded to Iain Carmichael, the former SE finance director, that paying off senior staff who leave their posts does not come cheaply. Employees who do not wish to move job or location as a result of the change will have to be compensated. Will packages be funded out of network budgets?

The new landscape will result in a regional body virtually as big as the former Strathclyde Region in the west of Scotland existing in the same set-up as one as small as Grampian (Aberdeen City and Shire) in the east. It seems clear who should have the big budgets. How will that affect the clout of a regional body in encouraging enterprise and securing investment in its area? Local authority budgets are stretched. Will they be funded adequately to deliver on local regeneration? Will the cash have to be ring-fenced to ensure it goes where intended? Economic development was ripe for reform. Whether the Scottish Government's solution will deliver is open to question; many questions.