Chamber
Meeting of the Parliament 11 September 2013
11 Sep 2013 · S4 · Meeting of the Parliament
Item of business
Enterprise Networks
I warmly welcome the Cabinet Secretary for Finance, Employment and Sustainable Growth’s announcement on the budget. As he outlined, the Government continues to make sound financial investments in Scotland’s future despite the on-going and unprecedented tight budget settlements that are being handed to us by the Westminster Parliament.
We can see positive signs of global economic recovery gaining traction, such as growth in emerging markets. We have also had recent positive developments in the Scottish economy. For example, youth unemployment has fallen by 2 per cent over the year and there have been positive business surveys, such as the Ernst and Young 2013 United Kingdom attractiveness survey, which showed that, in two of the past three years, Scotland has been the top-ranked country or region outside London for securing foreign direct investment—FDI—projects. In 2012, Scotland’s FDI projects were up by nearly a half from 2011 to 76 projects, which is the highest number in 15 years, whereas the number of FDI projects that most English regions, excluding London, secured declined in 2012. Investments in England outside London were 24 per cent below their 2010 level, a decline that has coincided with the closure of the regional development agencies and the switch to local enterprise partnerships. In contrast, Scotland, Wales and Northern Ireland recorded large rises.
Our performance and economic recovery can be clearly linked to the actions that we have taken. We are investing decisively in Scotland’s economic growth. We are working through our enterprise and skills agencies and closely with our partners in local government to support businesses to help them grow, internationalise and export, while helping our people to take advantage of the opportunities that will follow. For example, a Ross-shire business that began life in a garden shed has signed a deal with China’s largest online training provider. The directors and founders of Dingwall-based TEFL Scotland, Joe and Jennifer Hallwood, who now employ 13 staff, will be working with the Zhi Bo Hong Yuan Co Ltd—I hope that I have pronounced that correctly—to develop and promote distance and classroom training as well as international cultural exchanges for English teachers across China.
The role of our enterprise agencies is a key element of the distinctive approach that we take in Scotland. Their work in supporting Scottish businesses aims to increase exports and productivity and to ensure that Scotland continues to have sustainable economic growth. A comparison with recent developments south of the border, where the coalition Government has abolished the regional development agencies, shows that our approach is the right one. Further, we understand that the return on investment for every £1 spent by the enterprise network is approximately £6. Scottish Enterprise anticipates that, over the next decade, the net additional return on gross value added from its proposals will be about £5.75 billion.
Some of those statistics are estimates, so they might be right and they might be wrong, but it is clear that, overall, the performance thus far has been strong, and we are reasonably entitled to assume that the agencies remain on the right track and that their performance will be equally good in future.
We can see positive signs of global economic recovery gaining traction, such as growth in emerging markets. We have also had recent positive developments in the Scottish economy. For example, youth unemployment has fallen by 2 per cent over the year and there have been positive business surveys, such as the Ernst and Young 2013 United Kingdom attractiveness survey, which showed that, in two of the past three years, Scotland has been the top-ranked country or region outside London for securing foreign direct investment—FDI—projects. In 2012, Scotland’s FDI projects were up by nearly a half from 2011 to 76 projects, which is the highest number in 15 years, whereas the number of FDI projects that most English regions, excluding London, secured declined in 2012. Investments in England outside London were 24 per cent below their 2010 level, a decline that has coincided with the closure of the regional development agencies and the switch to local enterprise partnerships. In contrast, Scotland, Wales and Northern Ireland recorded large rises.
Our performance and economic recovery can be clearly linked to the actions that we have taken. We are investing decisively in Scotland’s economic growth. We are working through our enterprise and skills agencies and closely with our partners in local government to support businesses to help them grow, internationalise and export, while helping our people to take advantage of the opportunities that will follow. For example, a Ross-shire business that began life in a garden shed has signed a deal with China’s largest online training provider. The directors and founders of Dingwall-based TEFL Scotland, Joe and Jennifer Hallwood, who now employ 13 staff, will be working with the Zhi Bo Hong Yuan Co Ltd—I hope that I have pronounced that correctly—to develop and promote distance and classroom training as well as international cultural exchanges for English teachers across China.
The role of our enterprise agencies is a key element of the distinctive approach that we take in Scotland. Their work in supporting Scottish businesses aims to increase exports and productivity and to ensure that Scotland continues to have sustainable economic growth. A comparison with recent developments south of the border, where the coalition Government has abolished the regional development agencies, shows that our approach is the right one. Further, we understand that the return on investment for every £1 spent by the enterprise network is approximately £6. Scottish Enterprise anticipates that, over the next decade, the net additional return on gross value added from its proposals will be about £5.75 billion.
Some of those statistics are estimates, so they might be right and they might be wrong, but it is clear that, overall, the performance thus far has been strong, and we are reasonably entitled to assume that the agencies remain on the right track and that their performance will be equally good in future.
In the same item of business
The Presiding Officer (Tricia Marwick)
NPA
The next item of business is a debate on motion S4M-07643, in the name of Fergus Ewing, on enterprise networks. I call Fergus Ewing to speak to and move the ...
The Minister for Energy, Enterprise and Tourism (Fergus Ewing)
SNP
I warmly welcome the Cabinet Secretary for Finance, Employment and Sustainable Growth’s announcement on the budget. As he outlined, the Government continues ...
Tavish Scott (Shetland Islands) (LD)
LD
While the minister is on the subject of statistics, one statistic that his Government is using at the moment is that 75 per cent of people in the Highlands a...
Fergus Ewing
SNP
Tavish Scott raises a significant point that takes up a lot of time and consideration. I recently met with the Highlands and Islands Enterprise team that is ...
Murdo Fraser (Mid Scotland and Fife) (Con)
Con
I am grateful to the minister for giving way. We heard some interesting evidence this morning at the Economy, Energy and Tourism Committee—I am referring not...
Fergus Ewing
SNP
That is a perfectly valid point, and I am keen—or at least willing—to look at the process again. Plainly, any gatekeeper process must be fixed and certain; i...
The Deputy Presiding Officer (Elaine Smith)
Lab
Minister, you are approaching your last minute.
Jenny Marra (North East Scotland) (Lab)
Lab
Will the minister take an intervention?
Fergus Ewing
SNP
Sorry, I have oodles—to use a non-ministerial technical expression—of my speech left.
The Deputy Presiding Officer
Lab
I am afraid that we are rather tight for time. You are now in your last minute.
Fergus Ewing
SNP
Looking north, I should point out that, over the past five years, Highlands and Islands Enterprise has built a portfolio of accounts comprising 596 business ...
The Deputy Presiding Officer
Lab
I call Jenny Marra to speak to and move amendment S4M-07643.1. Ms Marra, you have a maximum of nine minutes.15:52
Jenny Marra (North East Scotland) (Lab)
Lab
Like the minister, I put on record the Labour Party’s support for the work of Scottish Enterprise and all our enterprise networks in developing Scotland’s bu...
Maureen Watt (Aberdeen South and North Kincardine) (SNP)
SNP
What the member has just suggested was very much a feature under the Labour/Liberal Scottish Executive, when Scottish Enterprise had no clear direction. Sinc...
Jenny Marra
Lab
I had hoped to strike a conciliatory note—
The Deputy Presiding Officer
Lab
Order, please. We cannot hear the member.
Jenny Marra
Lab
I was about to go on to propose a review of the agencies. Since 1999, Scottish Enterprise has operated effectively, but it has perhaps not always been as eff...
The Deputy Presiding Officer
Lab
Excuse me, Ms Marra, but the conversations that are taking place in the chamber, particularly those behind you, must cease.
Jenny Marra
Lab
We need to examine the impact that the reforms have had on workers and business and we believe that now is the right time for a pulse-check.As well as noting...
The Deputy Presiding Officer
Lab
You have nine minutes, but I can give you a few more seconds for the interruption.
Jenny Marra
Lab
Thank you.The Economy, Energy and Tourism Committee report examined our enterprise networks as a whole, the gaps in partnership working and the proactive ste...
Murdo Fraser (Mid Scotland and Fife) (Con)
Con
It was in 2007 that I previously held the economy and enterprise brief for my party, but it is almost as if nothing has changed in the interim. Here we are, ...
Fergus Ewing
SNP
I have been aware of Mr Fraser’s concerns about the matter since yesterday, when his amendment was lodged. I would be more than happy to facilitate a meeting...
The Deputy Presiding Officer
Lab
You are now in your final 30 seconds.
Murdo Fraser
Con
I am grateful to the minister for that helpful offer, and I look forward to engaging directly with Scottish Enterprise.I raised the issue directly with Lena ...
The Deputy Presiding Officer
Lab
We come to the open debate. Speeches should be of a maximum of six minutes, because we are very tight for time.16:07
Mike MacKenzie (Highlands and Islands) (SNP)
SNP
On the afternoon of the publication of the draft budget, it is entirely appropriate for us to debate a motion on the enterprise networks. It is helpful, I th...
Murdo Fraser
Con
On a point of order, Presiding Officer. I understood that the topic for debate was Scotland’s enterprise networks, on which we have a motion and amendments b...
The Deputy Presiding Officer
Lab
Members should try to stick to the terms of the debate. If any member wishes to intervene on another member, they can ask to do so. Mr MacKenzie, please cont...
Mike MacKenzie
SNP
Think how much better our renewables industry could be performing if George Osborne was not dithering over energy market reform, causing huge uncertainty and...