Chamber
Plenary, 11 Jun 2008
11 Jun 2008 · S3 · Plenary
Item of business
Small Business Bonus Scheme
There are plenty examples from around the country. I advise John Park to do what I did the other day, which was to walk around Oban and Rothesay and talk to the business community. You will find that it is exceedingly cheery and positive, and it is listening to the message from the FSB and others about investing to make its businesses more viable and allowing them to endure and grow. I also have an example of an auto workshop in Angus that has used its savings for the installation and upkeep of a waste oil and chemical processing system. The company says that were it not for the bonus, it would have had to resort to borrowing.
I could go on. I say to my Liberal Democrat colleagues that we will, of course, undertake a full evaluation once the scheme is fully in place, but the evidence of its impact is already apparent. To those who claim that the scheme should have been targeted, I will say two things: first, businesses are best qualified to make decisions about how they can use the relief that we provide; and secondly, the Government believes in cutting bureaucracy, not in increasing it.
The Government's economic strategy sets out our ambition to narrow the gap in participation between Scotland's best and worst-performing regions by 2017. Available evidence suggests that one of the main beneficiary groups will be small-scale retailers, which will be particularly true in rural areas and districts where average rateable values are relatively low. I am delighted that in such areas the small business bonus will benefit a higher proportion of businesses overall, and that it will go some way towards maintaining the viability of some marginal small-scale retailers and fragile communities.
More widely, we see a chance for the business improvement districts to gain extra weight, for more confidence in financial autonomy for Scotland, and for people to realise that other support exists that they can lean on and use to drive their businesses forward. The reform of the enterprise networks creates that climate. Business gateway's extension to the Highlands and Islands and its transfer to local authorities mean that we are running a more cohesive system to support and drive the economy. The regulatory reform group is cracking on at a fine pace and is delivering real advantages, as is our move in public procurement.
All in all, at a time when business faces the challenge of rising costs in areas such as fuel and government, this Government is taking practical steps to reduce the burden of taxation. I am therefore proud to move the motion in my name.
I move,
That the Parliament welcomes the introduction, on 1 April 2008, of the Small Business Bonus Scheme; notes that businesses have reacted positively to the scheme, and believes that businesses themselves are best placed to decide how to use the reductions in business rates resulting from the scheme to invest in their own success and to deliver new opportunities, new employment and new ventures throughout Scotland.
I could go on. I say to my Liberal Democrat colleagues that we will, of course, undertake a full evaluation once the scheme is fully in place, but the evidence of its impact is already apparent. To those who claim that the scheme should have been targeted, I will say two things: first, businesses are best qualified to make decisions about how they can use the relief that we provide; and secondly, the Government believes in cutting bureaucracy, not in increasing it.
The Government's economic strategy sets out our ambition to narrow the gap in participation between Scotland's best and worst-performing regions by 2017. Available evidence suggests that one of the main beneficiary groups will be small-scale retailers, which will be particularly true in rural areas and districts where average rateable values are relatively low. I am delighted that in such areas the small business bonus will benefit a higher proportion of businesses overall, and that it will go some way towards maintaining the viability of some marginal small-scale retailers and fragile communities.
More widely, we see a chance for the business improvement districts to gain extra weight, for more confidence in financial autonomy for Scotland, and for people to realise that other support exists that they can lean on and use to drive their businesses forward. The reform of the enterprise networks creates that climate. Business gateway's extension to the Highlands and Islands and its transfer to local authorities mean that we are running a more cohesive system to support and drive the economy. The regulatory reform group is cracking on at a fine pace and is delivering real advantages, as is our move in public procurement.
All in all, at a time when business faces the challenge of rising costs in areas such as fuel and government, this Government is taking practical steps to reduce the burden of taxation. I am therefore proud to move the motion in my name.
I move,
That the Parliament welcomes the introduction, on 1 April 2008, of the Small Business Bonus Scheme; notes that businesses have reacted positively to the scheme, and believes that businesses themselves are best placed to decide how to use the reductions in business rates resulting from the scheme to invest in their own success and to deliver new opportunities, new employment and new ventures throughout Scotland.
In the same item of business
The Presiding Officer (Alex Fergusson):
NPA
The next item of business is a debate on motion S3M-2102, in the name of Jim Mather, on the small business bonus scheme.
The Minister for Enterprise, Energy and Tourism (Jim Mather):
SNP
I am delighted to open this debate on the impact of the small business bonus scheme. The introduction of the new scheme on 1 April marked an important stage ...
Johann Lamont (Glasgow Pollok) (Lab):
Lab
The minister said that, as a listening Government, it received the message from the business community that what was happening was a disincentive. Is he awar...
Jim Mather:
SNP
I have not heard that message directly from the housing associations. We deal with them in my constituency as a key sector in the economy. I look forward to ...
John Park (Mid Scotland and Fife) (Lab):
Lab
Will the minister explain how he can guarantee that there will be increased investment from smaller companies that will lead to more jobs and greater economi...
Jim Mather:
SNP
I regret that John Park has a zero-sum game mentality. The Government is putting business in the driving seat, and business has a sense of obligation. Let us...
Tavish Scott (Shetland) (LD):
LD
On the minister's point about his discussions with business, is his position on regulation still that it should be one in and one out?
Jim Mather:
SNP
We have a mature approach with the regulatory reform group. Better regulation is the objective and the process, and it has to be the focus. I can assure Tavi...
John Park:
Lab
Would it be appropriate for you to make available the names of the companies that you are talking about today? It would be useful for us in the wider debate.
Jim Mather:
SNP
There are plenty examples from around the country. I advise John Park to do what I did the other day, which was to walk around Oban and Rothesay and talk to ...
The Presiding Officer:
NPA
Before I call Elaine Murray, I remind all members that contributions should always be made through the chair, which means referring to members by their chose...
Elaine Murray (Dumfries) (Lab):
Lab
I ought to start by declaring an interest as one of the people who has received a small business bonus. That is probably true of many members who run offices...
Gavin Brown (Lothians) (Con):
Con
In 2000, Jack McConnell ended the uniform business rate that applied to both Scotland and England. Was that a good result for businesses in Scotland?
Elaine Murray:
Lab
As I was just about to explain–and as has been long rehearsed over the years—business rates comprise two factors: poundage, which at that point increased in ...
Derek Brownlee (South of Scotland) (Con):
Con
The minister is often attacked—not without cause—for bewildering people with management gobbledegook, but today I will forgive him his mention of Deming beca...
Elaine Murray:
Lab
I offer a brief correction. I said:"Tax cuts are always popular with the beneficiaries."
Derek Brownlee:
Con
I stand corrected. On the subject of correction, the establishment of a town centre regeneration fund was a policy in the Conservative manifesto, as Elaine M...
Liam McArthur (Orkney) (LD):
LD
Small businesses are the lifeblood of our economy. The contribution that they make to the diversity, competitiveness and resilience of our economy is immense...
Derek Brownlee:
Con
I accept the logic behind Mr McArthur's argument. Do the Liberal Democrats think that that logic should also apply to other Government interventions to assis...
Liam McArthur:
LD
I would not disagree with that point, but it does not seem to reinforce the point that Derek Brownlee has just made in his speech. Good governance and sound ...
Gavin Brown:
Con
Will the member give way?
Liam McArthur:
LD
I am sorry, but I must make progress.I am astonished that, amid their self-congratulation, Mr Brownlee and his colleagues cannot bring themselves to support ...
Gavin Brown:
Con
Will the member give way?
Liam McArthur:
LD
No.Our amendment also provides the basis on which to address the concerns that underlie the Labour amendment. Skills, energy efficiency and, of course, physi...
Roseanna Cunningham (Perth) (SNP):
SNP
I have looked forward to the debate for some time, and not just because I, too, can declare as an interest the fact that my constituency office is saving mon...
John Park (Mid Scotland and Fife) (Lab):
Lab
I have been consistent on this issue since entering Parliament last year and I made my views known in one of my first speeches. Reductions in business rates ...
Roseanna Cunningham:
SNP
Just exactly what size of business does the member think that he is talking about when he talks about fleets of cars? Most of the businesses benefiting from ...
John Park:
Lab
That is why we want to give those businesses more investment and ensure that the public infrastructure is there to support their businesses, rather than just...
Alasdair Allan (Western Isles) (SNP):
SNP
As other members have done, I declare an interest in as much as my office pays rates.Whatever our arguments today, there can, I hope, be no disagreement abou...
David Whitton (Strathkelvin and Bearsden) (Lab):
Lab
Just as the sun shines, I stand up. Does Mr Allan think that it is an economic benefit to the Western Isles that the minister turned down the Lewis wind farm...