Allan Wilson MSP
Cunninghame North

Speeches - 2000

 

 

Speeches to the Scottish Parliament in 2000

 

The Creative Economy - Wednesday 27th September 2000

 
Allan Wilson: I actually agreed with a lot of what Mr MacAskill had to say, particularly about this being a question of vision. I am not going to say that we as a small nation cannot do it, as Mr MacAskill put it; we are saying that we can do it. The Texas analogy is interesting, and demonstrates the wider benefit of the economic and political union with a bigger entity.

There was a time when the ideas of wealth creation and social justice seemed incompatible in Scotland. The Labour party in power has, I believe, dispelled that myth, and has ensured that the creation of wealth is being used to give chances and opportunities to those who had none, and to redistribute resources to those who need them. We call that social inclusion, and a vital part of that is for everyone to be able to take part in the cultural life of their communities. By supporting the creative industries in a way that only Labour can, we are expanding that virtuous circle of wealth creation and social and cultural inclusion.

In the current climate created by Labour, which is ideal for steady growth, we will specifically give support—as described by the Deputy Minister for Enterprise and Lifelong Learning—to help those creative industries flourish. We recognise the vital role played by the creative industries as part of a productive, successful economy. The creative industries are anticipated to grow significantly faster than the economy as a whole, and there is every indication that that trend will continue for the foreseeable future.

Labour wants to seize that opportunity for greater wealth and job creation, with the creative industries having the potential to strengthen the economy, to widen lifelong learning, to offer opportunities for people returning into the work force and to regenerate our communities, as part of the Scottish Enterprise clusters plan.

I was pleased to see ministers commit themselves to creating a proper platform for the exchange of intellectual property rights. We have been slow to find ways of protecting the most valuable asset of the new economy—knowledge. By developing a system that allows intellectual property rights to be shared and exchanged legally and efficiently, we will limit the huge losses to the music and media industries that result from copying and bootlegging. I imagine that there can be nothing more discouraging than spending money and time creating something of value, only to have it ripped off by bootleggers.

I was also pleased by the development of the cluster approach to economic growth in this sector. That involves related industries operating as a group, being at same time one another's customers, competitors, partners, suppliers or research and development sources. Partners in a cluster continue to compete, but they also share the benefits of innovative ideas and practices that make all of them more competitive. Clusters depend on collaboration rather than competition. In many ways, they are the antithesis of the laissez-faire Thatcherite economics of the past. They enable economies better to create the conditions that are necessary for companies to compete on the basis of innovation, higher value added and rising productivity, all of which support the rising wages and standards to which Labour is committed.

The energy and ideas that are created by growing industries work best when they can be shared and supported by like-minded people. We in the Labour party have always been aware that competition can be wasteful in some circumstances. Instead of Scottish companies always competing with one another, together they will compete better in the global market to which Kenny MacAskill referred if they collaborate with one another, where possible, and identify win-win solutions. The cluster approach in Scotland that has been pioneered by Scottish Enterprise currently applies to a range of sectors. The overall aim is to ensure that Scotland's small, open economy thrives in an increasingly competitive global economy.

In the United Kingdom, Scotland is considered a world leader in the creation and success of innovative cluster strategies. The Department of Trade and Industry has strongly endorsed that approach. Every one of the new English development agencies has the promotion of clusters and networks as a key part of its strategic plan. We are ambitious for these industries, as we are ambitious for Scotland. We aim over the next five years to increase the value of this sector by 30 per cent. By achieving that, we will create not only jobs but more opportunities for people to hear music, read books, watch movies and see plays. We will work with and guide the market to ensure that that happens.

I turn now to the Tory amendment. When it comes to regulation, the creative industries are not significantly different from other sectors of the economy. Since coming to power, the Labour Government has created the best economic environment for indigenous business growth and inward investment for a generation. The new 10p starting rate of corporation tax was introduced in April and came on top of cuts in the main and small business rates of corporation tax to their lowest ever levels—lower than the levels in any of our competitors. We have taken further steps to boost productivity, such as cutting capital gains tax, to create the most favourable environment that Britain has ever seen for encouraging entrepreneurs, rewarding risk taking and extending share ownership.

The truth is that Britain has one of the most lightly regulated labour markets in the world and, according to the Organisation for Economic Co-operation and Development, one of the most lightly regulated product markets. To meet our manifesto commitment to cut red tape, an objective that we support, we have established the improving regulation in Scotland unit to free Scottish business from needless regulation.

Labour has delivered for business, turning a huge borrowing requirement into a budget surplus.

Mr MacAskill: Labour is spending more money on bailing out the millennium dome than Allan Wilson is proud of spending on this strategy. It is spending £40 million on bailing out the dome, but £25 million on something that the member has described as fundamental. Does he think that that is right?

Allan Wilson: If that is the sort of contribution that we can expect from Mr MacAskill, Mr Swinney will have to do better than arranging the deck chairs on the nationalist Titanic. Not a penny of public money has been invested in the dome. All of it is lottery money. In this debate we are talking about investing in creative industries from within our budget.

I conclude with a testimony to the efforts of the Labour Government to providing the business environment that will enable the creative industries to flourish. Interest rates are near their historic low, and long-term rates have now converged with the euro zone rates; indeed, they are probably slightly lower. Ten years ago, under the Tories, they were 3.7 per cent higher. Unemployment is at its lowest level since 1974, the last time we had a Labour Government. There is no coincidence there.

I support the motion and present a win-win scenario for the Scottish nation: economic prosperity and widening opportunity; low rates of personal taxation; and record levels of public investment. I support the motion and reject the amendment.

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Allan Wilson MSP 01294 605040 (Office)
or 07711038711 (Mobile)

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