Chamber
Meeting of the Parliament 23 February 2012
23 Feb 2012 · S4 · Meeting of the Parliament
Item of business
Economy and Recovery
Yesterday, we enjoyed that rarity in economic debates: unanimity among the parties across the chamber. That was on our approach to the green investment bank—we all hope that the Scottish bid is successful. I suspect that there will be little such agreement today, but I will begin by mentioning the one line in the Scottish Government’s motion with which the Labour Party agrees. Austerity is not working. The tax rises and spending cuts that the Tories in Westminster have introduced have proven to be too deep and too fast, which is precisely as Labour claimed. They have choked off recovery, pushed up the cost of living for many families, and created a rise in unemployment that many of us fear will lead to a whole new lost generation.
I will go further. As I have said in every contribution that I have made to the debate on the budget in recent weeks, despite the fact that the Scottish National Party has been in power in Scotland for the past five years, I do not blame every economic ill on it. We are in the midst of an international as well as a national economic difficulty, and the Scottish Labour Party stands ready to work with any and all parties to tackle the serious problems that we face and to get Scotland working again. I hope that I will have time to return to that point later.
If it were simply a case of taking the Scottish Government at its word, or taking the minister at his word today, we might have much more in common on the economic agenda. However, the motion before us follows the unfortunately all-too predictable SNP line of false assertion rather than evidence-based argument, while simultaneously avoiding facing up to any of its own responsibilities.
I do not doubt that the Scottish Government claims to have a distinctive approach to economic policy, but I believe that there is a huge gap between what the SNP says that it is doing and the decisions and policies that are implemented by ministers.
Economic commentators are certainly clear about where the evidence points. In an article earlier this month, following the publication of Scotland's horrendous unemployment figures, Professor David Bell, who is a professor of economics at the University of Stirling and an adviser to the Finance Committee, pointed out that the average difference in unemployment rates between Scotland and the UK as a whole during the recession has been less than 0.5 per cent. He therefore concluded that SNP policy
“has not driven any massive differences in labour market outcomes north of the Border since the beginning of the recession.”
I will go further. As I have said in every contribution that I have made to the debate on the budget in recent weeks, despite the fact that the Scottish National Party has been in power in Scotland for the past five years, I do not blame every economic ill on it. We are in the midst of an international as well as a national economic difficulty, and the Scottish Labour Party stands ready to work with any and all parties to tackle the serious problems that we face and to get Scotland working again. I hope that I will have time to return to that point later.
If it were simply a case of taking the Scottish Government at its word, or taking the minister at his word today, we might have much more in common on the economic agenda. However, the motion before us follows the unfortunately all-too predictable SNP line of false assertion rather than evidence-based argument, while simultaneously avoiding facing up to any of its own responsibilities.
I do not doubt that the Scottish Government claims to have a distinctive approach to economic policy, but I believe that there is a huge gap between what the SNP says that it is doing and the decisions and policies that are implemented by ministers.
Economic commentators are certainly clear about where the evidence points. In an article earlier this month, following the publication of Scotland's horrendous unemployment figures, Professor David Bell, who is a professor of economics at the University of Stirling and an adviser to the Finance Committee, pointed out that the average difference in unemployment rates between Scotland and the UK as a whole during the recession has been less than 0.5 per cent. He therefore concluded that SNP policy
“has not driven any massive differences in labour market outcomes north of the Border since the beginning of the recession.”
In the same item of business
The Deputy Presiding Officer (John Scott)
Con
The next item of business is a debate on motion S4M-02084, in the name of John Swinney, on the economy and recovery. I draw it to members’ attention that the...
The Cabinet Secretary for Finance, Employment and Sustainable Growth (John Swinney)
SNP
I will set out the action that the Government is taking to ensure that Scotland’s recovery can take its course, despite the current global uncertainties. As ...
Gavin Brown (Lothian) (Con)
Con
The cabinet secretary says that the quarter 3 figure of growth of 0.5 per cent was the same as that for the UK. What about the year-on-year figures in compar...
John Swinney
SNP
No, we did not grow at the same rate as the UK over the year. However, I would have thought that the Conservatives would welcome the point that I made. It is...
Ken Macintosh (Eastwood) (Lab)
Lab
Does the cabinet secretary agree that the country enjoys better economic activity and inactivity rates only in a defined age group? In the whole age group ab...
John Swinney
SNP
Across the measure of economic inactivity, it is a pure statistical fact that Scotland performs better than the rest of the United Kingdom does.The outlook r...
Neil Findlay (Lothian) (Lab)
Lab
Will the cabinet secretary therefore now abandon his plans to cut corporation tax?
John Swinney
SNP
The short-term priority for the Government, within the powers that are at our disposal, is to ensure that we obtain the necessary capital investment to boost...
Gavin Brown
Con
Will the cabinet secretary give way?
John Swinney
SNP
Given the time, I had better press on.In order to boost economic confidence in Scotland, we are taking action to combat weakening consumer confidence, suppor...
John Park (Mid Scotland and Fife) (Lab)
Lab
Will the cabinet secretary take an intervention?
John Swinney
SNP
I will press on.On building on our recovery, I will set out some actions that the Government intends to take to capture opportunities that will ensure sustai...
Ken Macintosh (Eastwood) (Lab)
Lab
Yesterday, we enjoyed that rarity in economic debates: unanimity among the parties across the chamber. That was on our approach to the green investment bank—...
John Mason (Glasgow Shettleston) (SNP)
SNP
Does that not make the point that we need more powers if we are to do something much better than the UK?
Ken Macintosh
Lab
The point is that the motion that is before us calls on us to support the Scottish Government’s “distinctive approach”. What distinctive approach? The SNP is...
John Swinney
SNP
Let me give Mr Macintosh a fact. Since 2007, unemployment has been lower in Scotland than in the rest of the UK in 38 out of the 56 months. In the 96 months ...
Ken Macintosh
Lab
Can I suggest that it demonstrates nothing of the sort and that it answers a different question? The minister’s claim is that his Government is making a dist...
Chic Brodie (South Scotland) (SNP)
SNP
I have read in detail not just the STUC’s report but the Federation of Small Businesses in Scotland’s report. Why does the member not represent a fair view o...
Ken Macintosh
Lab
That is a good question that goes exactly to the point that I am addressing. Of course the scheme is popular: that is why the SNP introduced it. It is popula...
John Swinney
SNP
What are you going to do about it?
Ken Macintosh
Lab
The minister asks what we are going to do about it. Can I suggest that the minister should listen to Labour? Perhaps he is already doing so. For example, I a...
The Deputy Presiding Officer (Elaine Smith)
Lab
Can we hear the member’s last 30 seconds, please?
Ken Macintosh
Lab
Following three interventions, Presiding Officer? Well, okay.We should see further interest in wage subsidies and a drive to maintain rather than reduce the ...
The Deputy Presiding Officer
Lab
I reiterate what my colleague John Scott said: the debate is very tight for time, so no time will be given back for interventions.15:18
Gavin Brown (Lothian) (Con)
Con
What did we have today from the Scottish Government? We had the usual cartoonish exaggeration: everything that it has done has helped the economy and spurred...
Gavin Brown
Con
Right on cue. I knew that that was coming. I think that it was even in the script.I take issue with something that the cabinet secretary said when he critici...
John Swinney
SNP
Who is splitting hairs now?
Gavin Brown
Con
If the cabinet secretary wishes to make an intervention, I would welcome it at any point in my speech.
John Swinney
SNP
I will wait until the member makes a point of substance.
Gavin Brown
Con
Mr Swinney had 14 minutes in which to make a point of substance—and he made lots of them, apparently. I will pick him up on some of the other points that he ...