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Chamber

Meeting of the Parliament 08 January 2014

08 Jan 2014 · S4 · Meeting of the Parliament
Item of business
Scotland’s Economy

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.”

References in this contribution

Motions, questions or amendments mentioned by their reference code.

In the same item of business

The Presiding Officer (Tricia Marwick) NPA
The next item of business is a debate on motion S4M-08714, in the name of John Swinney, on Scotland’s economy. Members who wish to speak in the debate should...
The Cabinet Secretary for Finance, Employment and Sustainable Growth (John Swinney) SNP
I welcome this opportunity to update the Parliament on the Scottish economy and to lead this debate on the opportunities for strengthening our long-term grow...
Tavish Scott (Shetland Islands) (LD) LD
Is the cabinet secretary aware that there is currently an industrial dispute pending at the Sullom Voe plant between Petrofac, the contractor for the Total g...
John Swinney SNP
Mr Scott will be aware of the keen interest that ministers take in the issues that affect industrial relations and their impact on the economy, as we demonst...
Alex Johnstone (North East Scotland) (Con) Con
Hear, hear.
John Swinney SNP
I simply say to Mr Johnstone, who is the most audible member on the subject—even from a sedentary position—that the current recovery in Scotland is taking pl...
Gavin Brown (Lothian) (Con) Con
Will the cabinet secretary give way?
John Swinney SNP
Of course.
Gavin Brown Con
Is the entire economic recovery, then, down to the Scottish Government?
John Swinney SNP
I say to Mr Brown—I have marshalled this argument in the parliamentary chamber on countless occasions—that the Scottish Government has dealt with the circums...
Willie Rennie (Mid Scotland and Fife) (LD) LD
I hear what the finance secretary says, but he has stood there before and said that the UK coalition economic plan would not work. How does he explain the 1....
John Swinney SNP
What I have said to the Parliament before is that we needed to have more sustained capital investment to minimise the suffering that people have endured. If ...
Iain Gray (East Lothian) (Lab) Lab
The improvements in the employment and economic positions and the signs of economic recovery outlined by the cabinet secretary are very welcome. He wisely de...
Mark McDonald (Aberdeen Donside) (SNP) SNP
Last night and today on television, two of Mr Gray’s shadow cabinet colleagues have outlined Labour’s plans to scrap the small business bonus. How will that ...
Iain Gray Lab
They did nothing of the kind. It is an interesting point, though, because our position has consistently been that the small business bonus is a missed opport...
John Swinney SNP
Will the member give way?
Iain Gray Lab
No, I am sorry. Let me make progress. Interruption.
The Deputy Presiding Officer (Elaine Smith) Lab
Order, please.
Iain Gray Lab
It is not enough for the Government itself to pay the living wage and avoid zero-hours contracts. It cannot be right that employers working on a contract suc...
Bruce Crawford (Stirling) (SNP) SNP
Does Mr Gray believe that Scottish firms should pay more in business rates than firms in the rest of the UK?
Iain Gray Lab
No, and nobody has said that they should. Interruption.
The Deputy Presiding Officer Lab
Order.
Iain Gray Lab
From a sedentary position, someone asks where the money is coming from. I am looking at the analysis of the Barnett consequentials. That was the sum of money...
John Swinney SNP
Will the member give way?
Iain Gray Lab
No. Interruption.
The Deputy Presiding Officer Lab
Order.
Iain Gray Lab
The white paper argues that, with independence, the economy will inevitably flourish and, in fairness, it sets out the platform for that boom. It will build ...
Stuart McMillan (West Scotland) (SNP) SNP
Will the member give way?
Iain Gray Lab
No, I need to carry on. On Monday, the Deputy First Minister demanded to know what would happen after a no vote. Here is what will happen. We will keep the ...
Kevin Stewart (Aberdeen Central) (SNP) SNP
Will the member give way?