Meeting of the Parliament 08 January 2014
Satisfying jobs, good affordable homes to live in, clean thriving neighbourhoods to be part of, security and a chance to prosper in life: those are some of the reasons why a vibrant Scottish economy is important. Some people enjoy those things—we are lucky to live in a rich developed nation that has much potential—but many people are left by the wayside. Poverty and inequality still plague us, despite those riches.
My colleague Patrick Harvie said yesterday that none of us has a monopoly on wisdom or concern when it comes to creating a fairer economy and society. That is true. He also argued that independence will give us a chance to imagine a vision and to create a reality for people that differs from successive years in which the ultrarich have become even richer even as the western economy has hit crisis, and in which Governments have punished the poorest people in society through their vision of austerity.
We want something that is different from George Osborne’s “austerity forever” speech on Monday; we want something that is different from David Cameron’s preaching about restraint while surrounded by gold at the lord mayor’s banquet. The genuine alternative to austerity is equality. Scotland is one of the richest countries in the world, but we must tackle the huge inequalities in our wealth, health, gender opportunities and life chances.
We have enough wealth, but it must be distributed more evenly in order to give those who wish it the opportunity to get a better job and more skills and education, and to have a settled family life and the ability to contribute fully to our neighbourhoods. Football is an important part of many of those neighbourhoods, and Greens would like new powers in the proposed community empowerment bill that would give fans the chance to take ownership of their local football clubs and sports clubs. The economic and social benefits of ownership should be made widely available to our communities.
Closing the inequality gap will require action in all the social policy areas that are already devolved, but that is not enough. The Green amendment sets out our reasons for why taxation, industry and employment powers should sit in Scotland. That would give us the chance to create a new approach to the economy—one that provides for everyone to live well.
What could that look like? A resilient sustainable economy would be based on Scottish businesses and small enterprises—not on multinational companies that jump ship for a new tax break. It is based on a diverse network of smaller banks including mutuals, municipal banks, co-operatives and credit unions which exist to serve small businesses and ordinary citizens—not just speculators.
Publicly owned renewable energy companies, co-operatively owned supermarkets, regeneration and development that values people’s participation, renationalised railways, and successful small businesses are all ways of building a robust economy that is controlled democratically, and not by multinational corporate interests. Greens would like the Scottish Government to negotiate to turn the Royal Bank of Scotland’s retail operation in Scotland into a network of local banks, thereby boosting lending to small businesses in every region.
We have to measure what matters. Gross domestic product is not the be all and end all, but too many politicians remain addicted to the impossible goal of everlasting GDP growth at all costs. It is the type of economic activity that matters—not the amount and speed of growth. Oxfam’s humankind index shows that Scottish people prioritise their health, safe and affordable homes, a pleasant local environment and satisfying work. It also shows that although they think that money is important, they do not covet vast wealth; they just value having enough money to participate properly in society.
Some employment figures are improving, which is incredibly welcome for the thousands who are out of work, but underemployment and poverty pay still burden our economy and impact very badly on women and young people, in particular. We must reverse our slide into a low-wage, low-skill economy, as too many people continue to be trapped in poverty despite working very hard.
The Resolution Foundation estimates that the UK would save more than £2 billion a year in welfare payments if the living wage was paid across the private sector. That is because most benefits for people of working age are paid not to the unemployed but to people on low wages. We are, in effect, subsidising corporations that pay poverty wages. An economy that paid fair and decent wages would mean that thousands of people in Scotland could escape the in-work poverty trap and it would increase demand in the economy.
Even with existing powers, the Scottish Government could begin to change direction. For example, the £10 million grant that is spent on subsidising the tax-dodging Amazon would be better spent on growing jobs in Scottish businesses that contribute to our society, no matter how difficult they may find that at times.
Yesterday’s announcement on the extension of free school meals was very welcome, but we must ensure that local food producers benefit from that extra public spending. Bold action in the Procurement Reform (Scotland) Bill could ensure that children in Scottish schools always eat—as far as possible—locally produced beef, pork and chicken from just up the road. Recent freedom of information requests have revealed that some Scottish school kitchens have been serving chicken from Brazil and Thailand. By producing and buying local, we will benefit growers, processes, our environment, our children and our economy here in Scotland.
We need a new economic model that is
“resilient and ... provides for everyone to live well.”
I move amendment S4M-08714.2, to leave out from “stronger” to end and insert:
“a new sustainable and democratically accountable economic model for Scotland that delivers an equal, resilient and locally-based economy and provides for everyone to live well.”
Motions, questions or amendments mentioned by their reference code.