Meeting of the Parliament 21 January 2020
Jackie Baillie was actually making a good case for independence with her arguments about funding.
I welcome the establishment of the Scottish national investment bank, which has the capacity to transform Scotland’s economy and to provide us with a more sustainable and green future. I followed the progress of the bill through my membership of the Economy, Energy and Fair Work Committee, and I think that the committee did some positive work on shaping parts of the proposals.
I have spent 23 years overseas, working as an international banker, and 11 years working for an investment bank in the City of London, and I have seen the benefits that other countries gain from institutions such as the Scottish national investment bank. I see huge merit in the proposal, if it is implemented correctly. It is about time that we revolutionised our economy to support our evolving society, and we should invest in creating a bank that will impact on societal and environmental change. The bank should be a smart development that will be commercially minded and publicly accountable. It will give us slightly better control over our economy, allowing us to create and shape our markets and define how our economy develops, as well as what we prioritise for public investments.
A main concern of the debate, which we should all be able to agree on, is the need to prioritise tackling the climate emergency. Global warming requires urgent and innovative answers, and we need to start factoring in new and creative strategies that tackle climate change in all areas of policy. The Scottish national investment bank could play a key role in addressing that task by supporting industries that are working towards achieving net zero carbon emissions. If we focus on creating a bank that prioritises ethical investments and creates robust structures that encourage greener policies to facilitate a transition to a net zero emissions economy, we could create an economy that will lead the way, globally, in ethical banking investment.
That would, of course, require the bank to be well regulated and subject to rigorous ethical standards. It is a measured and sensible approach to have the bank’s board as a responsible body for implementing minimum ethical standards in relation to its investment decisions and for ensuring that those standards are adhered to. I welcome amendment 5, which accounts for that and allows the necessary flexibility. The primary mission of the bank should be clearly connected to making investments that are ethical.
An element of the bill that I think is particularly important is that the bank should address the current lack of providers of strategic patient capital. That will support companies with ambition and will provide the opportunity to advance smart investments in smaller companies with potential by giving them a smoother start in their development. We can invest in Scottish companies that provide local knowledge and that understand the unique economic strengths and challenges in Scotland. That not only will support our economy now but will set us up for a much more secure future, as we will be able to choose to support those who prioritise achieving net zero emissions.
It is time for an economy that can be shaped to reflect major societal changes. Having a bank that is flexible to the needs of our population is a sensible, logical approach for our economy. Of course, the bank will also have to make a profit or, at least, break even, so normal commercial structures will, of necessity, have to be in place to avoid unsustainable losses. Prudence and innovation can go hand in hand.
We have the chance today to pass a bill that is visionary and that will place Scotland as a country that is committed to transitioning to net zero while simultaneously growing a sustainable economy that improves the lives of our citizens. The Scottish national investment bank has the potential to advance our economy as well as to help us to achieve a fair and inclusive Scotland. That will help us to bring about the transformational change that is essential to sustaining and developing Scotland’s position as a vibrant economy that is prepared for the future. We can support our population now and better prepare for the generations to come through these proposals. Scotland can continue to be a global leader in the transition to a low-carbon economy while promoting growth that is inclusive, smart and sustainable.
I commend the bill.