Chamber
Meeting of the Parliament 11 September 2013
11 Sep 2013 · S4 · Meeting of the Parliament
Item of business
Enterprise Networks
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; if it is too vague, it is not much use. On the one hand, fixing an amount of turnover is open to criticism for being arbitrary—which it is; on the other hand, that gives an element of certainty and clarity, so that endless arguments do not arise about who is entitled to be in and who is not.
That said, turnover is not the only yardstick. Some companies with no record of profits and growth in turnover—in the area of life sciences, for example—are accepted for account management where they plainly have a potentially world-beating product. There is, therefore, an element of flexibility.
This is perhaps not the time to go into all the details, but I am happy to work with members in all parties to look at the issue. My feeling is that we have got the process right, but if there has been criticism from business in committee this morning, my officials will look at that evidence. I am happy to come back to members if they have any specific suggestions in that respect.
Over the period of the evaluation, 6,800 net additional direct jobs were created, with 8,330 created through multiplier effects. The total net extra jobs was therefore 15,130—the fact that more than 15,000 people have a job at least in part because of SE’s account-management services merits mention in the debate—which suggests a GVA return of around £5 for every £1 of SE spend over the four-year period. Account-managed companies currently employ 300,000 people. In the first quarter of 2013, 43 per cent of those companies reported that they had recruited more people, including young people.
Regarding the employers’ views of account management, the evaluation found that 90 per cent of the employers were satisfied or very satisfied with the support that they received; 80 per cent did not think that they could find that support elsewhere; 80 per cent said that the support had increased their level of turnover; 40 per cent said that SE support had helped them to increase international sales; 50 per cent said that the support had helped them to enter new international markets; 75 per cent said that their innovation spend had increased as a result of SE support; and 70 per cent reported that their productivity had improved. Those are good results.
That said, turnover is not the only yardstick. Some companies with no record of profits and growth in turnover—in the area of life sciences, for example—are accepted for account management where they plainly have a potentially world-beating product. There is, therefore, an element of flexibility.
This is perhaps not the time to go into all the details, but I am happy to work with members in all parties to look at the issue. My feeling is that we have got the process right, but if there has been criticism from business in committee this morning, my officials will look at that evidence. I am happy to come back to members if they have any specific suggestions in that respect.
Over the period of the evaluation, 6,800 net additional direct jobs were created, with 8,330 created through multiplier effects. The total net extra jobs was therefore 15,130—the fact that more than 15,000 people have a job at least in part because of SE’s account-management services merits mention in the debate—which suggests a GVA return of around £5 for every £1 of SE spend over the four-year period. Account-managed companies currently employ 300,000 people. In the first quarter of 2013, 43 per cent of those companies reported that they had recruited more people, including young people.
Regarding the employers’ views of account management, the evaluation found that 90 per cent of the employers were satisfied or very satisfied with the support that they received; 80 per cent did not think that they could find that support elsewhere; 80 per cent said that the support had increased their level of turnover; 40 per cent said that SE support had helped them to increase international sales; 50 per cent said that the support had helped them to enter new international markets; 75 per cent said that their innovation spend had increased as a result of SE support; and 70 per cent reported that their productivity had improved. Those are good results.
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...