Chamber
Plenary, 07 Mar 2007
07 Mar 2007 · S2 · Plenary
Item of business
Small Business
Members will know that we in the Scottish National Party want to create the conditions that will make Scotland more populous and more prosperous. Members of other parties will no doubt claim that that can be achieved by sticking to the current constitutional settlement, but we know that to be a false hope. We believe that those objectives can be achieved only through independence, which has energised and enriched many other small countries. It is our absolute conviction that such a resurgence is impossible in this union and that the proof of that is there for all to see.
Those who attended last night's meeting of the cross-party group on Scotland's financial future heard Professor Robert Wright show us the challenge that we face in relation to our population decline. He characterised the input of people from the European Union accession states as a blip and told us that the issue is urgent and that, if we do not do something about it, the solution will be neither easy nor obvious. However, he outlined a path that we can take, which involves economic powers and immigration powers.
More important than those issues, at least in the short term, is the need to focus on Scotland's economic growth. Even a poor measure such as gross domestic product, which overstates wealth retained in Scotland, shows us an interesting picture, especially when we cut through the deceit.
At the moment, the Executive indexes Scotland and England's GDP to equal 100 points as at 2003. It does not show much of a difference just now: the United Kingdom is at 105.3 points and Scotland is at 104.4 points. But if we clock the base back to 1998 and calculate it forward, the difference is six points; if we clock it back to 1985 and calculate it forward, the difference is 14 points; and if we clock it back to 1975, we see that Scotland is at 170 points and the UK is at 198 points, which is a difference of 28 points. That understates the position, as can be seen by examining other supportive data, such as VAT registrations.
Between 1999 and 2006, Scottish VAT-registered businesses grew at a level of 4 per cent, compared with 9.5 per cent in England, 7.1 per cent in Northern Ireland and 4.4 per cent in Wales. During that same period, Scotland's share of the UK population of businesses dropped to 7 per cent, even though we have 8.5 per cent of the population.
The Scottish people have a compelling rationale for putting the SNP in power to sort that out and to get Scotland back on the right track.
Those who attended last night's meeting of the cross-party group on Scotland's financial future heard Professor Robert Wright show us the challenge that we face in relation to our population decline. He characterised the input of people from the European Union accession states as a blip and told us that the issue is urgent and that, if we do not do something about it, the solution will be neither easy nor obvious. However, he outlined a path that we can take, which involves economic powers and immigration powers.
More important than those issues, at least in the short term, is the need to focus on Scotland's economic growth. Even a poor measure such as gross domestic product, which overstates wealth retained in Scotland, shows us an interesting picture, especially when we cut through the deceit.
At the moment, the Executive indexes Scotland and England's GDP to equal 100 points as at 2003. It does not show much of a difference just now: the United Kingdom is at 105.3 points and Scotland is at 104.4 points. But if we clock the base back to 1998 and calculate it forward, the difference is six points; if we clock it back to 1985 and calculate it forward, the difference is 14 points; and if we clock it back to 1975, we see that Scotland is at 170 points and the UK is at 198 points, which is a difference of 28 points. That understates the position, as can be seen by examining other supportive data, such as VAT registrations.
Between 1999 and 2006, Scottish VAT-registered businesses grew at a level of 4 per cent, compared with 9.5 per cent in England, 7.1 per cent in Northern Ireland and 4.4 per cent in Wales. During that same period, Scotland's share of the UK population of businesses dropped to 7 per cent, even though we have 8.5 per cent of the population.
The Scottish people have a compelling rationale for putting the SNP in power to sort that out and to get Scotland back on the right track.
In the same item of business
The Presiding Officer (Mr George Reid):
NPA
The next item of business is a debate on motion S2M-5690, in the name of Jim Mather, on the economy and small business.
Jim Mather (Highlands and Islands) (SNP):
SNP
Members will know that we in the Scottish National Party want to create the conditions that will make Scotland more populous and more prosperous. Members of ...
Mike Rumbles (West Aberdeenshire and Kincardine) (LD):
LD
The problem is that people do not know which SNP to put into power. Is it the SNP of Jim Mather, who wants to cut taxes, or the socialist republic SNP of Chr...
Jim Mather:
SNP
We will raise taxes by growing the economy. The member should read his newspapers. If he had read The Scotsman five months ago, he would have seen the editor...
The Deputy Minister for Enterprise and Lifelong Learning (Allan Wilson):
Lab
Jim Mather talks about raising taxes by growing the economy. By how much will he grow the economy to fill the £11 billion gap that is the differential betwee...
Jim Mather:
SNP
The minister wears his fantasy like a badge of pride, which it is not. If the calculations included our oil, a proper allocation of civil service jobs and de...
Murdo Fraser (Mid Scotland and Fife) (Con):
Con
Will the member tell us how the SNP's plans for a local income tax of 6.5 per cent, which would be paid on the profits of every unincorporated small business...
Jim Mather:
SNP
If the member listened to the Institute for Fiscal Studies, which tells us that the rate will be about 3 per cent, he would perhaps copy our policy on that, ...
The Presiding Officer:
NPA
I call Allan Wilson, to speak to and move amendment S2M-5690.3. Interruption.
The Deputy Minister for Enterprise and Lifelong Learning (Allan Wilson):
Lab
The fact that I am being attacked before I have said anything is a badge of pride that I wear in the chamber.In the five minutes that are available to me, it...
Jim Mather:
SNP
We are in a global boom at the moment, but all Scotland can muster is 2.3 per cent, so yet again we are working on low growth. Does the minister equate low g...
Allan Wilson:
Lab
What I equate with stability are the fundamentals of economic growth. That view is held not simply by the Labour and Liberal Democrat Scottish Executive but,...
Alex Neil (Central Scotland) (SNP):
SNP
Will the minister give way?
Allan Wilson:
Lab
No. I will carry on, if the member does not mind.We have almost the lowest unemployment since quarterly records began—the rate is below the UK rate for the f...
Alasdair Morgan (South of Scotland) (SNP):
SNP
The minister is fond of saying that Scotland is being subsidised by the rest of the UK to the tune of £11 billion. I do not accept that figure, but the minis...
Allan Wilson:
Lab
Unlike Mr Morgan, I am not a nationalist who thinks that the gap necessarily requires to be closed—Interruption. Members of the Scottish National Party are l...
Murdo Fraser (Mid Scotland and Fife) (Con):
Con
I welcome this afternoon's opportunity to debate the future of the Scottish economy and, in particular, support for small businesses. The debate is timely as...
Fergus Ewing (Inverness East, Nairn and Lochaber) (SNP):
SNP
If the Conservatives are so against quangos, why does Murdo Fraser's amendment propose a new quango—a dedicated skills agency? How much would it cost? How ma...
Murdo Fraser:
Con
It will have a budget of £170 million. We are proposing to transfer away from Scottish Enterprise—which is a largely discredited organisation that deals with...
Alex Neil rose—
SNP
Murdo Fraser:
Con
Mr Neil is now going to justify that outrageous tax grab against small businesses.
Alex Neil:
SNP
Not at all—Mr Neil is simply going to ask two straightforward questions. First, how are the Conservatives going to fund the council tax rebate to pensioners ...
Murdo Fraser:
Con
We have made it perfectly clear where the money to fund our pensioner council tax discount will come from. When we move Scottish Water out of the public sect...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD):
LD
Will the member give way?
Murdo Fraser:
Con
Do I have time, Presiding Officer?
The Presiding Officer:
NPA
You have a maximum of about two minutes.
Murdo Fraser:
Con
I will happily give way.
Jeremy Purvis:
LD
Have the policies that Mr Fraser is outlining been met by an explosion of indifference across the country because the Tories have said that they have no desi...
Murdo Fraser:
Con
Nobody can prejudge the outcome of the election. Who knows where we will be after it? The Conservatives may be sitting here with a much expanded group and—as...
Mr Andrew Arbuckle (Mid Scotland and Fife) (LD):
LD
I find it interesting that the SNP motion is on small businesses rather than the large business sector and that Jim Mather provided a pretty rosy-eyed romp t...