Chamber
Plenary, 26 Mar 2003
26 Mar 2003 · S1 · Plenary
Item of business
Scottish Economy
Nonetheless, the fact is that for 25 or 30 years—for a generation—Scotland's growth rate has lagged behind the UK's. However, we also know and understand—I want to come to this immediately—that growth in the 1980s and 1990s was largely fuelled by a kind of foreign direct investment that brought important jobs to Scotland. To a certain extent, however, the jobs were brought to Scotland on the basis of our having a low-wage economy. We are no longer prepared to compete with the rest of the world on that basis. In addition, that kind of foreign investment is simply no longer available to us in the 21st century. Therefore, the methodology of the 1980s and 1990s is not available to us now.
An example of that in our electronics industry is Motorola. That company's assembly plant at Easter Inch has gone and the Scottish Parliament rightly paid much attention to that change. However, the work force has found new jobs and training and started new businesses. Unemployment in West Lothian has gone down rather than up. Moreover, Motorola's huge wafer fab operation in East Kilbride is not only still there, but thriving and expanding. Why? Because it operates further up the production chain and it stays where the highly skilled people are—and they are here in Scotland. For the same reason, Sun Microsystems has just opened a new extension and a new line in Linlithgow.
When I visited Motorola recently, I met a young woman who had completed a modern apprenticeship there, after which she had undertaken a company-sponsored degree in electronic engineering. Now, she works on cutting-edge design and the manufacture of new silicon, which is found in almost every make of car that is produced in Europe today.
A growing company using research and innovation with Scottish knowledge, upskilling staff and moving production up the chain in providing global markets with Scottish products—that is the paradigm that we pursue in the quest for economic growth. At its heart is investment in what will drive that growth sustainably. The nationalist and Tory amendments should be resisted, because they contain the seeds of that strategy's destruction.
The nationalists would cut £120 million to £150 million from the budgets for investing in skills and business growth.
An example of that in our electronics industry is Motorola. That company's assembly plant at Easter Inch has gone and the Scottish Parliament rightly paid much attention to that change. However, the work force has found new jobs and training and started new businesses. Unemployment in West Lothian has gone down rather than up. Moreover, Motorola's huge wafer fab operation in East Kilbride is not only still there, but thriving and expanding. Why? Because it operates further up the production chain and it stays where the highly skilled people are—and they are here in Scotland. For the same reason, Sun Microsystems has just opened a new extension and a new line in Linlithgow.
When I visited Motorola recently, I met a young woman who had completed a modern apprenticeship there, after which she had undertaken a company-sponsored degree in electronic engineering. Now, she works on cutting-edge design and the manufacture of new silicon, which is found in almost every make of car that is produced in Europe today.
A growing company using research and innovation with Scottish knowledge, upskilling staff and moving production up the chain in providing global markets with Scottish products—that is the paradigm that we pursue in the quest for economic growth. At its heart is investment in what will drive that growth sustainably. The nationalist and Tory amendments should be resisted, because they contain the seeds of that strategy's destruction.
The nationalists would cut £120 million to £150 million from the budgets for investing in skills and business growth.
In the same item of business
The Presiding Officer (Sir David Steel):
NPA
Our main item of business today is a debate on motion S1M-4057, in the name of Iain Gray, on the Scottish economy.
The Minister for Enterprise, Transport and Lifelong Learning (Iain Gray):
Lab
It is right that one of the last debates in this session of the Parliament allows us to focus on the Scottish economy, which is the issue that underpins all ...
Phil Gallie (South of Scotland) (Con):
Con
Does the minister believe that Scotland's economy will benefit from the block grant, given the current balance of trade deficit, which was induced by the nat...
Iain Gray:
Lab
When we want to look forward, we must look back and judge the handling of the economy on the record of the current UK Government. We all know about the recor...
Miss Annabel Goldie (West of Scotland) (Con):
Con
Will the change in culture extend to political thinking? Does the minister recognise that bureaucrats do not deliver business start-ups and that the business...
Iain Gray:
Lab
Of course the change in culture has to extend to politics. That is why, as I am about to say in a moment, we have made a political decision to invest unprece...
Alex Neil (Central Scotland) (SNP):
SNP
Can the minister update members on the current state of the accessing telecoms links across Scotland project in relation to broadband and tell us whether the...
Iain Gray:
Lab
As Mr Neil probably knows, the first stage of project ATLAS came online early, and the second stage is still on time. Nevertheless, Scottish Enterprise has p...
Alasdair Morgan (Galloway and Upper Nithsdale) (SNP):
SNP
Even if one were to accept that taking the electronics sector out of the minister's GDP figures was a valid exercise, how does he explain the fact that for t...
Iain Gray:
Lab
The question posed is extremely interesting, because we know that for 25 to 30 years Scotland's GDP growth has lagged behind the UK's. One aspect of consider...
Phil Gallie:
Con
Does the minister agree that between 1989 and 1996 the Scottish economy grew at a rate that placed it either in the third or fourth position in the UK charts?
Iain Gray:
Lab
Nonetheless, the fact is that for 25 or 30 years—for a generation—Scotland's growth rate has lagged behind the UK's. However, we also know and understand—I w...
Andrew Wilson (Central Scotland) (SNP):
SNP
No, we would not.
Iain Gray:
Lab
An SNP document says that as a first step, the SNP"will use savings from the reform of the local enterprise network to reduce business rates to a level lower...
Miss Goldie:
Con
Will the minister give way?
Iain Gray:
Lab
I am finishing.As we look forward to a new parliamentary session, it is time for the Scottish Parliament to choose investment in Scotland's future, in Scotla...
Andrew Wilson (Central Scotland) (SNP):
SNP
Iain Gray nearly got going at the end of his speech. We almost got into a debate, and then he had to sit down. My throat is failing me at this early stage in...
Iain Gray rose—
Lab
Andrew Wilson:
SNP
I will take Iain Gray if he can tell us why a number of those in the advert said that they had not been contacted by Labour and so their support had been mad...
Iain Gray:
Lab
I have this to say about it: one chooses who to ask to pass judgment on one's success. I choose not a single Labour activist who expressed a view with which ...
Andrew Wilson:
SNP
That is terrific. If the minister is complacent and thinks that things are fine, why did his predecessor resign saying that she could not get the economy to ...
Ms Wendy Alexander (Paisley North) (Lab):
Lab
Will Andrew Wilson give way?
Andrew Wilson:
SNP
No, thanks. Why have 55 of Labour's business supporters said that they will not support Labour in the election? Why did 30 of them go bust?
Ms Alexander:
Lab
Will Andrew Wilson give way?
Andrew Wilson:
SNP
I will not.The reality is that some of those people have even said that the Labour party did not contact them. It was making up support that did not exist.
Ms Alexander:
Lab
Will Andrew Wilson give way?
Andrew Wilson:
SNP
How can we possibly trust a party that has made up supporters and spun the truth when most of those who backed it previously will not back it now? Why should...
Ms Alexander:
Lab
I challenge Andrew Wilson now because I have heard him repeat his false allegation so often. I challenge him to provide a sourced quotation from anywhere tha...
Andrew Wilson:
SNP
I have to rely for my sources on Alf Young in The Herald, who reported Wendy Alexander as having said it. If it is not true, I am sure that she will have wri...
Iain Gray rose—
Lab