Allan Wilson MSP
Cunninghame North

Speeches - 2005

 

 

Speeches to the Scottish Parliament in 2005
As Deputy Minister for Enterprise and Lifelong Learning

 

Skills - Speech in the Debate on Motion S2M-2694 on Skills Improvement in Scotland - 14th April  2005

 

Skills Improvement in Scotland
A debate on motion S2M-2694, in the name of Jim Wallace, on Skills Improvement in Scotland.

The Deputy Presiding Officer (Trish Godman): The next item of business is a debate on motion S2M-2694, in the name of Jim Wallace, on skills.

The Deputy First Minister and Minister for Enterprise and Lifelong Learning (Mr Jim Wallace): This afternoon, I open a debate on an issue that I am sure everyone in the chamber recognises as fundamentally important to ensuring the future prosperity of Scotland. Although members clearly have different views about the means, I think that there is unanimity in the chamber on the ultimate goal and a shared belief that achieving improved skills is central to Scotland's future economic performance.

It is important to acknowledge at the outset that our approach to skills improvement in Scotland is in some respects different from the approach that is taken in the rest of the United Kingdom. That is right and sensible, as we seek to meet specific Scottish needs in a variety of ways. Our approach to the skills agenda must have a comprehensive rationale. That, too, is important.

The Deputy Minister for Enterprise and Lifelong Learning (Allan Wilson): The debate has been good and interesting, and there have been some excellent contributions, not least from Alex Neil, if he does not mind my saying so. I ticked off the boxes as he spoke and it can reasonably be claimed that he got nine out of 10, which is a pass rate by any standards.

I readily accept that we could and should do more, not least in the NEET category to which Alex Neil referred. As members know, I got the job as Deputy Minister for Enterprise and Lifelong Learning relatively recently, and one of my personal priorities - as well as one of the Executive's partnership priorities — is to address the problem of young people who are not in education, employment or training. We are discussing a number of ideas, which we will be happy to share with the Enterprise and Culture Committee in due course, because we lag behind other parts of Europe and places beyond Europe in that regard. There may be many reasons why that is so, but we need much better data that show who the young people in question are and why they are in such a position. I categorically assure members that as we develop, roll out and discuss the employability strategy with the Enterprise and Culture Committee, the priority will be to address that issue.

Since I got this job, it has been clear to me — indeed, it was clear to me long before then, in the 28 or so years in which I worked in the trade union movement and had a close interest in skills development — that skills in all their various forms are absolutely crucial to the development of our growing economy. Skills are absolutely vital to our future economic prosperity and to the well-being not only of individuals, but of communities that depend on the industries that feed off those skills.

We all know that for Scotland to be truly prosperous, it must draw on the potential of its workforce, its people, its human resource. That is why the skills and training agenda is one of the most important political issues of the day. That is why we believe that through our lifelong learning strategy, we must not only develop the skills of today, but constantly revisit and develop those skills to match the requirements of the global economy in which we now compete and the needs and requirements of business and industry, through an employer-led approach to rolling out skills training.

In the short time that I have been doing this job, I have been enormously encouraged by the individuals and groups that I have met, who have demonstrated the genuine difference that learning new skills makes to them and their lifestyles. For instance, I met a number of former drug addicts who have transformed their lives and potential by learning skills and going through new training to bring them back to a normal human existence. There is nothing better in this job than to see that process come to fruition.

Such training benefits not just individuals, but wider society as a whole. Skills can provide individuals with a gateway to a confident, positive and prosperous future. That is why we have put so much emphasis on them. The partnership agreement makes it clear that growing the economy is our top priority and skills improvement and development are an important part of that.

I agree absolutely with what Cathie Craigie said. Like her, I will never see my 50th birthday again, but it is easy to forget how bad things used to be. More than 34,000 apprentices are currently receiving skills training. In addition, more than 90,000 people have received training through a modern apprenticeship since the programme began. Through the new deal, we have virtually eradicated youth unemployment in this country. It is to the eternal shame of the Conservative party, and indeed anyone in the nationalist party who does not support the new deal programme, that they seek to dispense with the programme and abandon young people again to the hopelessness that was the Thatcher years.

The Futureskills Scotland report was badly misrepresented by Adam Ingram. As Des McNulty correctly pointed out, the skills supply in Scotland is generally fit for purpose, with vacancies as a result of skills shortages representing less than 1 per cent of employee posts. This is not a controversial thing to say: skills shortages are not necessarily a bad thing per se. They are symptomatic of a growing, vibrant expanding economy.

Alex Neil: I accept that general point, but skills shortages go side by side with 150,000 people who are officially unemployed in Scotland. There is a clear breakdown in getting more of those 150,000 unemployed people trained and retrained to take up current vacancies.

Allan Wilson: There is no dispute between us on that point. The Futureskills Scotland survey shows that where skills shortages exist, they are predominantly in the growing business sector that is mostly small and expanding. Were such shortages to act as a constraint on growth, it would undoubtedly be a matter of greater concern to us, but there is no evidence of that.

If we are to expand employment and training opportunities, we must not only continue to invest in the public sector and further education, which I will come to in a minute, but ensure that there is growth in training opportunities in the private sector. I do not disagree about that.

Futureskills Scotland did not publish any information about the number of job applicants who lack certain skills. The report refers to the proportion of respondents to the employers skill survey who reported a skills shortage vacancy and who said that applicants for those vacancies lacked certain skills. Of the 5 per cent of establishments that reported being affected by a skills shortage vacancy, 24 per cent felt that applicants lacked basic numeracy skills and 29 per cent felt that they lacked basic literacy skills. Comparatively speaking, those percentages are extremely small proportions of the total.

Murdo Fraser is wrong to say that 29 per cent of respondents with skills shortage vacancies reported that applicants lacked basic literacy skills. That ranked only eighth in the list of 12 skills that were reported as lacking. For example, it was some way behind oral communication skills, which was cited as lacking by 57 per cent of the 5 per cent of respondents who reported being affected by a skills shortage vacancy. I am not being complacent or suggesting that there is no problem, but the problem is not of the order of magnitude that Murdo Fraser made it out to be.

Murdo Fraser is right to refer to the fact that the Conservative Government incorporated the further education colleges. However, it was not the act of incorporation that was controversial but the proposition that further education establishments should compete with each other for students rather than co-operating to build a skills agenda.

It is true that the Conservatives increased the number of places in higher education but they did not fund that expansion. The reason why they could not do so was that they were paying too much money to people to be unemployed. Not only were they paying people not to be economically active but they did not have the money that they should have been investing in further and higher education because they had 3 million people on the dole. They were increasing education opportunities but not providing employment opportunities at the end of the route. That was a recipe for disaster, which is why the Conservatives are sitting on the Opposition benches and will not be standing in my position for the foreseeable future.

Murdo Fraser: That is an interesting analysis. Of course, many people would say that many people now work for the Government. Since 1997, we have lost 1 million jobs in manufacturing. Scottish manufacturing is now at its lowest ebb — lower than it has been in the history of this country. What does the Executive have to crow about in relation to the state of the Scottish economy?

Allan Wilson: There has indeed been a shake-out in the manufacturing industry, but at the same time, we have record levels of employment across the economy, the longest period of sustained economic growth for 200 years and more people in employment now than has been the case since records began.

Alex Neil: Not in Scotland.

Allan Wilson: My statement is equally true of Scotland. I will deal with the nationalists' proposition in a minute but first I want to talk about employers and unions.

Employers play a hugely important role in driving up Scotland's skills base. We understand that and are working with them closely through the skills for business network and Investors in People to ensure that their contribution is valued and maximised.

I would not want to leave the podium without mentioning the trade union movement, as it is equally important. Our lifelong learning strategy speaks of the important role that unions can play in learning. Unions have a key role to play in workforce development, by influencing and working in partnership with employers, and they have an important role in leading workplace learning projects.
That role will be enhanced in the coming years with the development of the union learning academy. That is why we have invested £3.3 million in 54 union learning projects and are investing a further £1.6 million during the period from 2006 to 2008.

Mr Mather made reference to Quebec, which was a departure for him. I had been expecting the usual litany of small, independent European countries to be rolled out as examples of places that are better than us. However, we learned that it is now Quebec that will be held up to us as the epitome of economic performance, which is strange, considering that Quebec is not independent and is part of a much larger economic union, albeit a federal one. Does that not somewhat destroy the member's constitutional argument that economic growth can be born only from independence, out with the economic union to which he refers?

I conclude with some important statistics. Scotland's percentage of tertiary graduates is well above the mean. In fact, we surpass Japan, Spain, Sweden, Ireland, France, Italy, Germany, Switzerland, Austria and the Czech Republic. On the percentage of the population aged 25 to 64 that has attained at least upper secondary education, Scotland again exceeds the mean and is ahead of the Netherlands, France, the rest of the UK, Belgium, Australia, Ireland, Iceland, Luxembourg, Greece, Poland, Italy, Spain, Turkey and Portugal. Last but by no means least, on the percentage of the population aged 25 to 64 that had attained at least higher education in 2001, Scotland exceeds Sweden, Spain, Switzerland, Finland, Hungary, Ireland, New Zealand, Germany, Mexico, Belgium, Greece, Poland, France, Luxembourg, the Czech Republic, Slovakia, Italy, Turkey, Austria and Portugal. All those countries support the Executive's motion.


The Presiding Officer: The next question is, that amendment S2M-2694.1, in the name of Jim Mather, which seeks to amend motion S2M-2694, in the name of Jim Wallace, on skills, be agreed to. Are we agreed?

Members: No.

The Presiding Officer: The result of the division is: For 20, Against 82, Abstentions 9.

Amendment disagreed to.

The Presiding Officer: The next question is, that amendment S2M-2694.2, in the name of Murdo Fraser, which seeks to amend motion S2M-2694, in the name of Jim Wallace, on skills, be agreed to.
Are we agreed?

Members: No.

The Presiding Officer: The result of the division is: For 17, Against 69, Abstentions 25.

Amendment disagreed to.

The Presiding Officer: The final question is, that motion S2M-2694, in the name of Jim Wallace, on skills, be agreed to. Are we agreed?

Members: No.

The Presiding Officer: The result of the division is: For 66, Against 15, Abstentions 30.

Motion agreed to.

That the Parliament acknowledges the importance of a policy of effective skills improvement and the contribution it can make to Scotland's prosperity; supports the objectives of the Scottish Executive's lifelong learning strategy which has helped raise the skill levels of Scotland's current workforce and increased the potential for future skills improvement; recognises that the sustained success of the Modern Apprenticeship scheme and record investment in Scotland's colleges
have contributed significantly to improved skill levels; welcomes the Executive's commitment to improving adult literacy and numeracy rates and to better preparing Scotland's young people for the world of work through enterprise education and greater vocational learning opportunities, and believes that a continued focus on skills can help maintain Scotland's position as European Region of the Future.

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