Chamber
Plenary, 11 Jun 2008
11 Jun 2008 · S3 · Plenary
Item of business
Small Business Bonus Scheme
No.
Our amendment also provides the basis on which to address the concerns that underlie the Labour amendment. Skills, energy efficiency and, of course, physical and electronic infrastructure are crucial to improving business competitiveness. Ministers need to be able to do more than simply assert that a rate reduction is the best use of their resources. An independent assessment would, I believe, enable this and future Governments to assert their case more confidently and convincingly.
Of course, the motion is rather self-congratulatory, despite the SNP's condemnation of such motions when in opposition; perhaps it is just a feature of government. If so, it is one with which SNP ministers have become effortlessly familiar over the past year.
Small businesses face serious and wide-ranging difficulties. For example, red tape continues to be cited as a drag on business competitiveness, particularly for smaller businesses with less capacity to manage the weight of regulatory and other requirements. A report from the Royal Institution of Chartered Surveyors in February highlighted the problem, suggesting that 52 per cent of Scots surveyed claimed that regulatory requirements had become more of a challenge to their business performance over the past year. It is therefore not surprising that figures released last week by the committee of Scottish clearing bankers showed a drop of more than 30 per cent in the number of businesses set up in the first quarter of 2008 compared with the same period last year.
Businesses are also concerned by this Government's swingeing cuts to enterprise network budgets, and by the transfer of business gateway services away from Scottish Enterprise to local authorities. In the HIE area, the situation is even worse, with no arrangement yet in place for delivering the service.
On skills, the Government fails to impress. We await details of how the £16 million skills agency will work. Meanwhile, its skills strategy was rejected by the Parliament in a vote in which, remarkably, the Tories summoned up the backbone to vote against their coalition partners.
The Liberal Democrats believe that the small business bonus scheme can help to safeguard the competitiveness of our small business sector. We agree that, as the Tory amendment says, steps must be taken to raise awareness of the scheme, but we know that if Government is to get the biggest bang for its buck, it must have a clearer idea of what impact this and previous rate reductions are having on small businesses.
I move amendment S3M-2102.3, to insert at end:
"and calls on the Scottish Government to commission an independent assessment in 2010 of the impact and effectiveness of the current and previous administrations' business rate reduction measures."
Our amendment also provides the basis on which to address the concerns that underlie the Labour amendment. Skills, energy efficiency and, of course, physical and electronic infrastructure are crucial to improving business competitiveness. Ministers need to be able to do more than simply assert that a rate reduction is the best use of their resources. An independent assessment would, I believe, enable this and future Governments to assert their case more confidently and convincingly.
Of course, the motion is rather self-congratulatory, despite the SNP's condemnation of such motions when in opposition; perhaps it is just a feature of government. If so, it is one with which SNP ministers have become effortlessly familiar over the past year.
Small businesses face serious and wide-ranging difficulties. For example, red tape continues to be cited as a drag on business competitiveness, particularly for smaller businesses with less capacity to manage the weight of regulatory and other requirements. A report from the Royal Institution of Chartered Surveyors in February highlighted the problem, suggesting that 52 per cent of Scots surveyed claimed that regulatory requirements had become more of a challenge to their business performance over the past year. It is therefore not surprising that figures released last week by the committee of Scottish clearing bankers showed a drop of more than 30 per cent in the number of businesses set up in the first quarter of 2008 compared with the same period last year.
Businesses are also concerned by this Government's swingeing cuts to enterprise network budgets, and by the transfer of business gateway services away from Scottish Enterprise to local authorities. In the HIE area, the situation is even worse, with no arrangement yet in place for delivering the service.
On skills, the Government fails to impress. We await details of how the £16 million skills agency will work. Meanwhile, its skills strategy was rejected by the Parliament in a vote in which, remarkably, the Tories summoned up the backbone to vote against their coalition partners.
The Liberal Democrats believe that the small business bonus scheme can help to safeguard the competitiveness of our small business sector. We agree that, as the Tory amendment says, steps must be taken to raise awareness of the scheme, but we know that if Government is to get the biggest bang for its buck, it must have a clearer idea of what impact this and previous rate reductions are having on small businesses.
I move amendment S3M-2102.3, to insert at end:
"and calls on the Scottish Government to commission an independent assessment in 2010 of the impact and effectiveness of the current and previous administrations' business rate reduction measures."
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...