Chamber
Meeting of the Parliament 11 September 2013
11 Sep 2013 · S4 · Meeting of the Parliament
Item of business
Enterprise Networks
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 think, to place the motion in context. The context is that we are now, at long last, tentatively emerging from what some commentators have described as the deepest recession for more than a century.
The performance of our enterprise agencies must be considered against that background, and it is against that background that the results that they have achieved can only be described as staggeringly successful. A payback that achieves more than £5 of benefit for every public pound that is spent is a worthy achievement in any climate; in the economic climate of recent years, it is remarkable.
The Economy, Energy and Tourism Committee has had the opportunity to question senior officials from the enterprise agencies on several occasions over the past two years, and I know from those sessions that the evidence of the effectiveness of our enterprise agencies can stand up to scrutiny. I pay particular tribute to the robust methodology that Scottish Enterprise has developed to analyse its effectiveness. It takes a courageous and confident organisation to subject itself to such robust self-analysis, and I am convinced that that is part of the key to its success in recent years.
The clear goals and direction that the Scottish Government has set are another part of the reason for the success of our enterprise agencies. This is about economic understanding and competence. The great economist David Ricardo made the case very well in his theory of comparative advantage, which can perhaps be summarised as, “Do what you are good at and leave others to do what they are good at.”
In helping businesses with high-growth potential and in facilitating sectors in which we excel, we are following that wisdom. For many months now, that has been seen to pay off as a range of statistics have steadily shown that we are generally outperforming the economy of the UK as a whole. Employment is higher, unemployment is lower, growth is returning faster than it is to the UK as a whole and, over the long term, Scotland is performing extremely well indeed.
Just as the Scottish Government is following a course of economic wisdom, sadly, George Osborne is ignoring the wisdom of perhaps England’s greatest economist, John Maynard Keynes, and we are all paying for the chancellor’s economic ineptitude. Think how much more we could achieve in Scotland if Mr Osborne had not cut our capital budget by 26 per cent. Think how much better our oil industry could be performing if he had not mounted his ill-conceived tax grab.
The performance of our enterprise agencies must be considered against that background, and it is against that background that the results that they have achieved can only be described as staggeringly successful. A payback that achieves more than £5 of benefit for every public pound that is spent is a worthy achievement in any climate; in the economic climate of recent years, it is remarkable.
The Economy, Energy and Tourism Committee has had the opportunity to question senior officials from the enterprise agencies on several occasions over the past two years, and I know from those sessions that the evidence of the effectiveness of our enterprise agencies can stand up to scrutiny. I pay particular tribute to the robust methodology that Scottish Enterprise has developed to analyse its effectiveness. It takes a courageous and confident organisation to subject itself to such robust self-analysis, and I am convinced that that is part of the key to its success in recent years.
The clear goals and direction that the Scottish Government has set are another part of the reason for the success of our enterprise agencies. This is about economic understanding and competence. The great economist David Ricardo made the case very well in his theory of comparative advantage, which can perhaps be summarised as, “Do what you are good at and leave others to do what they are good at.”
In helping businesses with high-growth potential and in facilitating sectors in which we excel, we are following that wisdom. For many months now, that has been seen to pay off as a range of statistics have steadily shown that we are generally outperforming the economy of the UK as a whole. Employment is higher, unemployment is lower, growth is returning faster than it is to the UK as a whole and, over the long term, Scotland is performing extremely well indeed.
Just as the Scottish Government is following a course of economic wisdom, sadly, George Osborne is ignoring the wisdom of perhaps England’s greatest economist, John Maynard Keynes, and we are all paying for the chancellor’s economic ineptitude. Think how much more we could achieve in Scotland if Mr Osborne had not cut our capital budget by 26 per cent. Think how much better our oil industry could be performing if he had not mounted his ill-conceived tax grab.
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...