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Chamber

Meeting of the Parliament 04 June 2019

04 Jun 2019 · S5 · Meeting of the Parliament
Item of business
Realising Scotland’s Potential

Thank you, Presiding Officer.

On one level, I welcome the fact that the debate is beginning to include a wider range of views on the wider question of economic growth—its meaning, role and place in our economy. For a long time, only the Greens raised an objection to the fixation on economic growth and the primacy that the GDP metric is given in our economy. Relentlessly chasing after economic growth measured in GDP terms has always prioritised private riches over public wealth. It is inextricably linked to climate change and biodiversity loss from the fragmentation, pollution and degradation of habitats, the extraction and depletion of finite resources, and the exploitation of human beings around the world.

GDP growth fails to capture inequality, economic justice, people’s health, the state of our environment or wellbeing. It also fails to recognise the need to share economic benefits or to protect people from the consequences of economic activities. I am not surprised that the Conservative Party has not yet joined us in that deep debate about the meaning and role of GDP growth, although more and more people are having that discussion.

I was interested that Neil Findlay raised that question, too. Although the Labour Party amendment mentions economic growth, there is much in the second half of it that I can agree with. We are not going to agree on the independence question—not at this stage, although perhaps, one day, more people in Labour will come with us on that. However, even if they do not come all the way, there is a lot more that we could be doing to address low wages. We could be doing that here and now if the Labour Party had backed devolution of employment law in the debates in the Smith commission. We could have repealed anti-trade union legislation to help to restore the balance of power in the workplace. Even if the Labour Party does not join us in arguing that independence should be the ultimate trajectory for Scotland, I hope that it will come at least so far as to say that we should be seeking control of employment law.

I have mixed feelings about the Government’s amendment. It is clearly a significant improvement on the motion. It recognises that we should not just trumpet low unemployment and high employment rates, because we need to acknowledge that the canard that work is the route out of poverty no longer applies. That notion is broken. We know that a huge proportion of the poverty in our society is in-work poverty, so the quality of employment matters, too.

However, the amendment describes how the national performance framework should work, not how it works at the moment. The NPF still prioritises and places far too much emphasis on GDP growth. Moreover, the measurements of progress against the NPF show close to zero progress on issues such as poverty wages and income inequality.

The Green amendment, which was not selected for debate, agreed that a new policy framework and a new direction are necessary but asked: to what end? Just to race ahead with more GDP at any cost is not the approach that we should be taking. Instead, we should be learning from the likes of the enough coalition

, which was launched recently. The coalition questions the notion of growth and asks: what is real prosperity? How do we create it and share it, without continuing today’s extractive, polluting and exploitative economy?

I look forward to the debate continuing. I am certain that those questions are the ones that all political parties will have to face up to in the coming years and decades.

16:06  

In the same item of business

The Deputy Presiding Officer (Linda Fabiani) SNP
The next item of business is a debate on motion S5M-17504, in the name of Dean Lockhart, on realising Scotland’s potential. 15:41
Dean Lockhart (Mid Scotland and Fife) (Con) Con
The Scottish Conservatives will use our time today to set out a new direction in economic policy and a comprehensive new approach to skills and training. Th...
The Minister for Public Finance and Digital Economy (Kate Forbes) SNP
Will the member take an intervention?
Dean Lockhart Con
I will later. That is why we will set out measures to address those challenges and opportunities. With regard to Scotland’s trade, more than 60 per cent of ...
Kate Forbes SNP
I will intervene on a different point. In the spirit of gaining consensus, on the point around attracting skills, one of the biggest threats to that—particul...
Dean Lockhart Con
Immigration will continue to play an important part in Scotland’s economy, but it is a derogation of duty for any Government to ignore the training needs of ...
Tom Arthur (Renfrewshire South) (SNP) SNP
Will the member give way?
Clare Adamson (Motherwell and Wishaw) (SNP) SNP
Will the member take an intervention?
Dean Lockhart Con
I will in a second Our skills participation policy, which will focus on those who leave school without going into education or formal training, will be targ...
Clare Adamson SNP
Given your commitment to keeping people in education and training, can you explain why the United Kingdom Government did away with the education maintenance ...
The Deputy Presiding Officer SNP
Members should always speak through the chair, please.
Dean Lockhart Con
I will come to that point later. Today we are announcing a comprehensive set of new proposals that will address the skills gap that the Scottish National Par...
The Minister for Business, Fair Work and Skills (Jamie Hepburn) SNP
I welcome the opportunity that the debate provides to outline the strength of Scotland’s economy and labour market. I also welcome the opportunity to recogni...
Dean Lockhart Con
Last week, the Fraser of Allander institute highlighted that Brexit is a UK-wide issue. Why is Scotland’s economy forecast to continue to underperform the re...
Jamie Hepburn SNP
Mr Lockhart says that Scotland underperforms the rest of the UK. However, I was just about to set out the strengths of the Scottish economy. I noticed that t...
Neil Findlay (Lothian) (Lab) Lab
Will the minister reflect on what has been done in New Zealand, which has proposed budgets based on wellbeing rather than the continued pursuit of economic g...
Jamie Hepburn SNP
I do not concur that it contradicts sustainability principles. The record on our ambitions with regard to a sustainable and inclusive form of economic growth...
Richard Leonard (Central Scotland) (Lab) Lab
The Scottish Labour Party is always happy to take any opportunity to make our case for real and radical economic change, for more investment and less austeri...
Liz Smith (Mid Scotland and Fife) (Con) Con
I do not doubt the seriousness of the member’s comments, but does he realise that economic growth is paramount to address those concerns and that Labour’s po...
Richard Leonard Lab
The critical issue is the distribution of economic benefit from economic growth, which is one of the fault lines in our society. We say to the Scottish Gove...
Patrick Harvie (Glasgow) (Green) Green
What are the timings for speeches, Presiding Officer?
The Deputy Presiding Officer (Christine Grahame) SNP
I am sorry, Mr Harvie, I thought that you knew. Mr Harvie and Mr Rennie, you have four minutes, but there is time for interventions.
Patrick Harvie Green
Thank you, Presiding Officer. On one level, I welcome the fact that the debate is beginning to include a wider range of views on the wider question of econo...
Willie Rennie (North East Fife) (LD) LD
I was pleased with Richard Leonard’s speech, because he gave an unequivocal position on Europe. That is to be welcomed. I waited for the caveat that I though...
Neil Findlay Lab
Will the member take an intervention on that point?
Willie Rennie LD
Certainly.
Neil Findlay Lab
What influence did Mr Rennie have over the coalition Government, of which his party was a member, which cut budgets in all those sectors across the UK?
Willie Rennie LD
That was a nice try from Neil Findlay, but this is a debate about the economy and the future of this country. We can have another debate about the matter tha...
John Mason (Glasgow Shettleston) (SNP) SNP
I am pleased to take part in this Conservative debate on the economy. I will first focus on the part of the motion that talks about “the need to address the...
Dean Lockhart Con
I would like to bring John Mason into the 21st century by referring to last week’s Scottish Fiscal Commission report, which blamed the £1 billion black hole ...