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The
Economy
A debate on motion S2M-2361, in the name of Nicola
Sturgeon, on the economy, and four amendments to that motion
The
Presiding Officer (Mr George Reid):
Good morning. The
first item of business this morning is a debate on motion S2M-2361, in the
name of Nicola Sturgeon, on the economy, and four amendments to that motion.
A debate to examine Scotland's great potential for economic resurgence,
The Deputy Minister for Enterprise and Lifelong Learning (Allan Wilson):
Alex Johnstone is absolutely correct to mention the nationalists'
pick-and-mix strategy of choosing small countries and then choosing from
their economies the bits that they like and ignoring the bits that they do
not. One would think that they would at least have had the common sense to
choose two countries that have enjoyed economic growth in the past quarter,
rather than choosing Ireland and Norway, two countries with negative growth.
Scotland's growth rate of 0.9 per cent is, of course, twice the UK's growth
rate over the same period.
We could bandy statistics all day, but I agree with Shiona Baird, Mark
Ruskell and others — the debate should be about vision. Although we are
debating a nationalist motion, it is appropriate that we examine the
Executive's vision for our economy. Our vision is one in which we encourage
ambition, reward success and open up opportunity for all. It may be a retro
reference, but that means re-igniting Scotland's enterprising spirit.
We have put growing the economy at the forefront; it is the number 1
priority of the Scottish Government.
However, I say to Shiona that it is not growth at any cost. It should be
growth that encourages people to make the best of themselves, to make the
most use of their talents and to strive for opportunity, and it must respect
the wider environment. That is fundamental to sustainable development.
Mr Ruskell: How do we measure the costs?
Allan Wilson: As Mr Ruskell knows, we have a three-pronged strategy that
certainly favours economic development, but that also pays regard to wider
environmental impacts. It also seeks to reduce the opportunity gap. We have
targets for each of those objectives.
Our vision links growth in our economy with the regeneration of our
neighbourhoods. It is about closing the opportunity gap between the affluent
and the disadvantaged in our society, and about creating a modern,
enterprising Scotland. In that context, there are clear dividing lines
between this Executive and our opponents.
The Tories argue for growth at any cost, at the expense of economic
stability. They want to support the private sector irrespective of the
social consequences of their actions. The SNP, by contrast, wants an
expensive divorce from the rest of the UK. That would put the economic
stability to which I referred at serious risk. It would create uncertainty
in the economy — Kenny MacAskill did not answer the question that I put to
him — and it would almost certainly mean raising taxes, hitting hard-working
families in the process.
Our relationship with the rest of the UK is key to our vision. Our vision
complements the success of the UK economy. That is the national context in
which we work. Thanks to our partnership with the Government at Westminster,
unemployment in Scotland is at an all-time low and British inflation is the
lowest it has been for 20 years.
Alex Neil: Unemployment is not at an all-time low.
Allan Wilson:
Alex Neil says that it is not, but unemployment is at an
all-time low in Scotland as a consequence of the economic stability that we
have produced. We have the lowest mortgage rates for 40 years, which saves
mortgage payers an average of more than £3,400 a year. We are seeing the
longest period of sustained growth since records began.
Frances Curran: Would the minister agree that, although the statistics are
all very nice, we now have a bigger gap in inequality? How does the minister
explain that?
Allan Wilson: Our policies have led to an increase in personal wealth. I
have said that one of our objectives is to ensure that the gap between the
rich and poor in society is closed and that we provide opportunity for all.
One of the principal means by which we sought to close that gap was, of
course, the introduction of the national minimum wage. That has been
welcomed the length and breadth of the country — except by the nationalists
and the Tories.
The prospects for the economy in 2005 are positive. Business surveys on the
Scottish economy predict that output and employment in both the service and
manufacturing sectors will increase and independent forecasters predict that
there will be above-trend growth this year and next.
A strong, growing, vibrant and inclusive economy is crucial for all Scots at
all stages of their lives. I accept that if we are to take a medium and
long-term view, we need to have the right economic strategies in place. Our
economic strategy has been informed by the framework for economic
development in Scotland, which is
based on the understanding that economic growth is primarily determined by
the success of enterprises in developing new products and new processes,
gaining access to new markets, discovering new sources of supply and
creating new organisations for economic activity that can compete
effectively both domestically and throughout the world. I draw that to
Frances Curran's attention. Although Government can make a contribution, it
is the dynamism of the private sector that creates the wealth that we can
then distribute.
I want to refer to the Norwegian petroleum fund that is mentioned in the
nats' motion.
Members:
The nats?
Allan Wilson: It is a retrospective term from the 1970s.
The Norwegian petroleum fund helps with the management of fiscal policy; the
income from it is designed to be the central Government's net cash flow.
That is okay when one is running at a surplus—when the income from oil is
greater than the level of expenditure—but, as we all know, here in Scotland
we run at a deficit. Instead of proposing to set up a fund with a surplus,
the SNP is proposing to set up a fund with an overdraft.
The Deputy Presiding Officer: You must finish now, minister.
Allan Wilson: My concluding point is that, for nearly 20 years, the problem
was not that there was not a Scottish Government, but that there was not a
Labour Government. That was the choice that the SNP made in 1979 and it
should never be allowed to forget it.
The Deputy Presiding Officer: You must finish now, minister.
Allan Wilson: In conclusion—
The Deputy Presiding Officer: No. "In finishing" would be more appropriate.
Allan Wilson: The fact that the SNP is trundling out the argument on
Scotland's oil says to me that it has nothing much to say.
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