Dr Crawford is chief executive of the quango

A spokesman said the salary was necessary to ensure Dr Crawford's specialist services could be retained at the public body, which has an annual budget of �450m.

"Enterprise is a fairly significant area of devolved policy and we need someone with the skills and experience to take charge of that," he said.

"Scottish Enterprise has wide powers to promote enterprise, training competitiveness and environmental improvement.

"Pay levels for chief executives are based on factors including weight of responsibility, appropriate market comparisons, skills and experience and the need to retain the services of the individual."

Dr Crawford took a 50% pay cut when he joined Scottish Enterprise from accountants Ernst and Young in January 2000.

Highest earner

The Public Bodies 2001 report, which set out the spending and membership of UK quangos in the year to March 2001, showed that he was paid �188,000 a year.

The next highest earner in the Cabinet Office figures was Dennis Tunnicliffe, a former chief executive of London Regional Transport, who earned �185,143 during the same period.

Mr Blair receives a salary of �165,418, while Scotland's First Minister Jack McConnell is paid �110,652.

According to the report, 29,499 people were employed by 1,025 quangos in the UK last year.