Chamber
Plenary, 29 Mar 2007
29 Mar 2007 · S2 · Plenary
Item of business
The Future of Scotland
I understand what the member is saying, but the real growth has been in the public sector. Whether it then engages the private sector in some cases is neither here nor there. It is my belief that, if public sector spending was not growing so much, the private sector would be growing far faster and would make up the difference. Indeed, the economic evidence points to that, even just comparing Scotland with England.
Let us consider globalisation. For me, it is not just about emerging markets and the benefits that accrue to so many people from being able to open up trade. Globalisation is about the growing tax competition that is faced, in particular, by Scotland within the United Kingdom. We need just to look at other countries, particularly those that have come out of communism, and the tax rates that they are introducing—to encourage entrepreneurship where once it lacked and to ensure that people want to stay there rather than come to more developed western economies—to see that in Scotland we will be faced with real competition from the Baltic states and central Europe. We can already see the growth in their economies, and we need to be sure that we can keep our best talent and effect a culture change for people who want to start up businesses in Scotland.
To respond to the competition, we must first have a tighter rein on public spending. We must also use the powers that we already have to make a 3p cut in the standard rate of income tax—let us see that power used—and to have an annual reduction in business rates. Never mind corporation taxes, we should use business rates to encourage business and help it to locate here. It is a great pity that in the coming election we see economic policies with very little difference among them.
In the medium term, the Parliament must prepare to replace the block grant and the Barnett formula, not just to make us as politicians more accountable, but to ensure that the union is rebalanced and to remove the potential conflicts, which we are know are still lurking for when Governments change, between this Parliament and Westminster and, in particular, the Treasury. Unionists of all parties must recognise that threat.
In concluding, let me say that we should not settle for running just our country. We are not subservient. The English talk in London of a Scottish raj, with many consuls, ambassadors and people from Scotland running English and UK institutions. We should not settle for running Scotland when we can run Great Britain.
Scotland has an opportunity within the union. If the Parliament is to remain within the union, it must reform. In reforming, we can prosper.
Let us consider globalisation. For me, it is not just about emerging markets and the benefits that accrue to so many people from being able to open up trade. Globalisation is about the growing tax competition that is faced, in particular, by Scotland within the United Kingdom. We need just to look at other countries, particularly those that have come out of communism, and the tax rates that they are introducing—to encourage entrepreneurship where once it lacked and to ensure that people want to stay there rather than come to more developed western economies—to see that in Scotland we will be faced with real competition from the Baltic states and central Europe. We can already see the growth in their economies, and we need to be sure that we can keep our best talent and effect a culture change for people who want to start up businesses in Scotland.
To respond to the competition, we must first have a tighter rein on public spending. We must also use the powers that we already have to make a 3p cut in the standard rate of income tax—let us see that power used—and to have an annual reduction in business rates. Never mind corporation taxes, we should use business rates to encourage business and help it to locate here. It is a great pity that in the coming election we see economic policies with very little difference among them.
In the medium term, the Parliament must prepare to replace the block grant and the Barnett formula, not just to make us as politicians more accountable, but to ensure that the union is rebalanced and to remove the potential conflicts, which we are know are still lurking for when Governments change, between this Parliament and Westminster and, in particular, the Treasury. Unionists of all parties must recognise that threat.
In concluding, let me say that we should not settle for running just our country. We are not subservient. The English talk in London of a Scottish raj, with many consuls, ambassadors and people from Scotland running English and UK institutions. We should not settle for running Scotland when we can run Great Britain.
Scotland has an opportunity within the union. If the Parliament is to remain within the union, it must reform. In reforming, we can prosper.
In the same item of business
The Presiding Officer (Mr George Reid):
NPA
Good morning. The first item of business is a debate on the future of Scotland.
The First Minister (Mr Jack McConnell):
Lab
There is a particular resonance to debating the future of a nation when one is that nation's First Minister. Like every Scot, I grew up proud of my country—o...
Alex Neil (Central Scotland) (SNP):
SNP
On a point of order, Presiding Order. Is Mr McConnell speaking as the First Minister or as the leader of the Labour Party? He has been billed to speak as the...
The First Minister:
Lab
The Scottish National Party calls for debates, but it does not like them when they happen.We will make leaving school at the ages of 16 and 17 conditional on...
Mr John Swinney (North Tayside) (SNP):
SNP
The First Minister mentioned the child poverty statistics and his ambition to relieve child poverty by 2020. Has the journey towards achieving that ambition ...
The First Minister:
Lab
The child poverty figures that were published this week should encourage us to redouble our efforts. Tackling child poverty should be a priority for the Scot...
Phil Gallie (South of Scotland) (Con):
Con
On independence, will the First Minister join me in congratulating the organisers of last Saturday's march for the union in Edinburgh? Some 12,000 people mar...
The First Minister:
Lab
It might be unwise for me to comment on the entire occasion, but I welcome the fact that there was no trouble, for which I congratulate the organisers of the...
Nicola Sturgeon (Glasgow) (SNP):
SNP
Jack McConnell makes cheap jibes about Alex Salmond, but when Alex Salmond is First Minister, no one will forget his name. We relish the debate about Scotlan...
Mr Brian Monteith (Mid Scotland and Fife) (Ind):
Ind
If the SNP is so committed to reducing business rates, why, on the two occasions on which I sought an annulment of the increase in business rates, did the SN...
Nicola Sturgeon:
SNP
The SNP's commitment not only to cutting business rates but to abolishing them for 120,000 small businesses is well known and will make a huge difference. Th...
Karen Gillon (Clydesdale) (Lab):
Lab
If the SNP wins the election, we will have a referendum in 2010. What happens if the people of Scotland say no?
Nicola Sturgeon:
SNP
The difference between Karen Gillon and me is that I want to give the Scottish people the right to choose and she wants to deny them that right. If she wants...
Miss Annabel Goldie (West of Scotland) (Con):
Con
The future of Scotland is indeed now in the hands of the Scottish people. There are two stark choices: devolution or isolation. Those are the only two games ...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD):
LD
Miss Goldie has repeatedly said that, under the Conservatives, people would serve the entire length of their sentence. Why is it that, under Conservative par...
Miss Goldie:
Con
It is predictable that Mr Purvis, a representative of the desperately failed pact that has presided for eight years over the disintegration of our criminal j...
Mike Rumbles (West Aberdeenshire and Kincardine) (LD):
LD
Will the member take an intervention on that point?
Miss Goldie:
Con
I want to make progress.The Executive has also failed in its stewardship of the economy and our transport infrastructure. I cannot help noticing that those t...
Mike Rumbles rose—
LD
Miss Goldie:
Con
My party has a comprehensive manifesto of fully costed proposals to revitalise the economy, including an imaginative and positive scheme for business rates r...
Nicola Sturgeon:
SNP
No, I said that we should not just judge a party by the sum of its policies.
Miss Goldie:
Con
Ah well—a revised view from the SNP benches. Either way, the SNP's sums still do not add up, and there is nothing it can do to hide that. People in Scotland ...
The Deputy First Minister and Minister for Enterprise and Lifelong Learning (Nicol Stephen):
LD
It has been an interesting debate thus far. As I look around the chamber, I wonder who the floating voters are whom we are trying to influence. It is more a ...
Phil Gallie:
Con
Following Nicol Stephen's comments about the collapse of the eastern bloc, will he join me in congratulating Margaret Thatcher and her Governments on playing...
Nicol Stephen:
LD
I congratulate those nations and peoples on the success and power of their democracies for the future of those countries.Scotland's past has not been as desp...
Malcolm Chisholm (Edinburgh North and Leith) (Lab):
Lab
I congratulate Nicol Stephen on not setting a rate of local income tax of 3p in the pound, which would result in devastating cuts in local government service...
Nicol Stephen:
LD
I am happy to confirm that the Liberal Democrats support the abolition of the unfair council tax and that we support a genuine local income tax, which is not...
Fergus Ewing (Inverness East, Nairn and Lochaber) (SNP):
SNP
In his party capacity, the Deputy First Minister has said that the Lib Dems are committed to scrapping red tape. Can he explain why representatives of his pa...
Nicol Stephen:
LD
The more important question is why the Scottish National Party voted to introduce a third-party right of appeal. Why did the SNP want to place that burden on...
Mr Mark Ruskell (Mid Scotland and Fife) (Green):
Green
Will the minister give way on that point?