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The Scottish Economy
A debate on motion
S2M-3377, in the name of Jim Mather, on The Scottish Economy.
The
Presiding Officer (Mr George Reid):
Good morning. The first item of business is a debate on motion S2M-3377, in
the name of Jim Mather, on the Scottish economy.
Jim Mather (Highlands and Islands) (SNP):
On Monday night, the Minister for Enterprise and Lifelong Learning admitted
on BBC radio that there are significant problems in business growth and
other aspects of our economy and he called for consensus. Well, for the
record, John Swinney and I made a similar call on 3 September 2003 and Wendy
Alexander did the same in her book, "Chasing the Tartan Tiger", which was
published the next day. Yet such consensus looks a long way off — we are
well short of the 90 per cent support that was achieved in Barcelona. We
must ask ourselves why that is. Although I accept that many people in other
parties genuinely want the best for Scotland, views remain polarised.
We have a second chance, because oil, renewable energy and the dynamics of
the global economy suit small, capable countries such as ours. We have
plenty role models. Even Catalonia — the location of cheap holidays when I
was a lad—has a GDP per capita per annum £4,000 higher than ours.
Negotiations are under way for Catalonia to move even further forward. The
Finns, under the shadow of the Soviet Union for so long — that big neighbour
that inhibited its growth — now tops the world competitiveness league table.
W Edwards Deming, one of the world's foremost quality gurus and the guy who
turned round the economy of Japan, developed a theory called the 85:15 rule.
The rule is that 85 per cent of organisational problems are caused by system
failures, poor plans or procedures, a lack of measurable performance
criteria and poor processes, whereas only 15 per cent are caused by people.
Deming and others established that the potential for eliminating problems
lies primarily in improving the system, not in blaming employees.
I move,
That the Parliament accepts that it is the duty of government to create
conditions that foster meaningful levels of economic growth and result in
rising living standards, increased life expectancy and a growing
demographically balanced population; regrets the fact that the policies of
the last 30 years have failed to meet this test, and believes that the time
is now right for the Scottish Parliament to exercise full competitive
control of the Scottish economy in order to achieve these objectives.
The Deputy Minister for Enterprise and Lifelong Learning (Allan Wilson):
What part of the 85:15 theory would account for the SNP's absolute failure
to excite the population over its economic strategy? Mr Mather says that the
people of Scotland are queuing up to endorse his position. He could have
fooled me. As members will appreciate, I do not have much sympathy for the
nationalists or their current plight. They are languishing behind even our
Liberal Democrat partners in the popularity stakes and are completely
incapable of securing the trust or confidence of the people of Scotland.
With all due respect, we have just seen one of the reasons why. It is a
largely self-inflicted phenomenon, which is down the absolute failure of the
nationalists to articulate a credible or even vaguely plausible economic
policy to challenge our management of Scotland's resources.
Jim Mather:
Will the minister take an intervention?
Allan Wilson:
Let me develop the point first.
The most recent attempt was Nicola Sturgeon's bizarre — indeed, economically
illiterate — call for economic patriotism, whatever that may be. Equally
bizarre, it must be said, was the resurrection of the 1970s slogan, "It's
oor oil," or words to that effect. That will not substitute for a complete
lack of a monetary, fiscal or exchange rate policy and the absence of any
strategy for combating inflation, securing full employment and growing the
economy more generally. The SNP instead adopted the one policy that for
years in the chamber did not dare speak its name: so-called independence.
Its members have substituted slogans for strategy.
Jim Mather:
Having heard everything that the minister has to say, may I suggest to him
that he be courageous enough to join me in debating the Scottish economy in
front of an audience of real businesspeople and that he have the patriotism
to do the right thing by Scottish Power?
Allan Wilson:
I strove for a Scottish Parliament so that we could debate these matters in
a forum of public opinion. People such as Jim Mather stood on the sidelines,
refused to join the constitutional convention and did nothing. I remember
the SNP's leader across the water accusing the Scottish Labour Party of
being incapable of delivering a pizza. Instead, we delivered the Parliament,
where we properly debate the issues that matter to our nation.
I am happy to talk about Scotland's oil anytime, anywhere. Interestingly
enough, "It's our oil" does not even make it into the motion. Perhaps that
is an early indication that that slogan is going the way of its predecessor.
The McCrone report is 30 years old. It is an interesting period piece.
However, figures from "Government Expenditure and Revenue in Scotland
2002-03" show categorically that, as my colleague George Lyon pointed out —
Mr Mather steadfastly refused to answer his point — even if oil revenues
were apportioned to Scotland, our position would remain
one of net borrowing compared with the rest of the United Kingdom. The oil
fund that the SNP boasts about would be, as George Lyon said, an oil
overdraft.
GERS also includes an analysis of longer-term developments and provides
evidence of a long-term structural net fiscal deficit in Scotland. I notice
that oil only becomes "our oil" when the price is high. The economic
illiteracy of tying our economy to the fluctuating price of one world
commodity is ludicrous. The effect on our currency and exchange rate,
measured against a basket of other international currencies, would be
disastrous for this country's manufacturing exports. The whisky industry, on
which so many Scots rely for employment, springs to mind. To face the
challenges of a globalising world—
Mr John Swinney (North Tayside) (SNP)
rose—
Allan Wilson:
Perhaps Mr Swinney will let me explain my point; this is a debate and I have
already given way to his front-bench colleague. If Mr Swinney had stayed on
the front bench, I might have given way to him.
Our commitment to securing sustainable economic growth includes working to
ensure that all parts of Scotland benefit from our policies to improve
transport connections, to reform the planning system and to secure a smart,
successful Scotland. We are committed to securing economic and social
regeneration throughout Scotland. We have made good progress under
devolution, but we have more to do in growing our cities and urban
communities and in regenerating our former coalfield and de-industrialised
areas. That is a challenge in which all our agencies have a major role to
play in working together to build a better Scotland.
People could choose SNP instability over stability; they could choose
unemployment over employment; they could choose perpetual constitutional
navel-gazing and the infamous, never-ending referendum over the settled will
of the Scottish people; and they could choose a flight of capital, inward or
indigenous, from these shores over investor confidence. However, I have
confidence that the people of Scotland will not choose those options. We in
the Executive are with the grain of the Scottish people; the nationalists
are not and never will be.
I move amendment S2M-3377.2, to leave out from "create conditions" to end
and insert:
"help create the conditions that foster a sustainable economy, rising living
standards and an improving quality of life and welcomes the commitment of
the Scottish Executive to sustainable economic growth, record levels of
investment in public infrastructure and transport connections, its support
for competitive business, skills development, training and education, and
its promotion of Scotland as a vibrant place to live, work and do business."
Decision Time
The Presiding Officer (Mr George Reid):
There are 14 questions to be put as a result of today's business. In
relation to this morning's first debate, on the Scottish economy, if the
amendment in the name of Allan Wilson is agreed to, the amendment in the
name of Murdo Fraser falls. The first question is, that amendment
S2M-3377.2, in the name of Allan Wilson, which seeks to amend motion
S2M-3377, in the name of Jim Mather, on the Scottish economy, be agreed to.
Are we agreed?
Members: No.
The Presiding Officer:
There will be a division.
The Presiding Officer:
The result of the division is: For 67, Against 47, Abstentions 10.
Amendment agreed to.
The Presiding Officer:
The amendment in the name of Murdo Fraser therefore falls, so the second
question is, that motion S2M-3377, in the name of Jim Mather, on the
Scottish economy, as amended, be agreed to. Are we agreed?
Members: No.
The Presiding Officer:
There will be a division.
The Presiding Officer:
The result of the division is: For 69, Against 22, Abstentions 33.
Motion, as amended, agreed to.
Resolved,
That the Parliament accepts that it is the duty of government to help create
the conditions that foster a sustainable economy, rising living standards
and an improving quality of life and welcomes the commitment of the Scottish
Executive to sustainable economic growth, record levels of investment in
public infrastructure and transport connections, its support for competitive
business, skills development, training and education, and its promotion of
Scotland as a vibrant place to live, work and do business.
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