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Plenary, 05 Feb 2009

05 Feb 2009 · S3 · Plenary

Item of business

Financial Sector Jobs Task Force

Brownlee, Derek Con South of Scotland Watch on SPTV

John Park has just made a pertinent point about jobs. All of us know constituents, and many of us have friends and family, who work in the financial services sector. Even those who are not immediately faced with the prospect of redundancy are feeling uneasy. There is a great deal of uncertainty and concern in the industry about what the situation means for people's jobs, homes and families. That concern will remain with us for some time.

I echo what John Park said about the approach of the banks. So far, they have taken a responsible approach in dealing with the inevitable concerns. We are all realistic, particularly in relation to the banks that are undergoing strategic change, that there will be reductions in head count. That is inevitable, and it means real people losing their jobs. That needs to be handled very carefully. So far, the banks have taken a sensitive approach.

We are all aware of the importance of the financial services sector to Scotland. Even with the recession, and even if the impact of the recession on the financial services sector proves to be significant, it will be very important to Scotland in terms of employment and its contribution to the economy. It is important not to lose sight of that. I get frustrated with some of the media, and indeed some politicians, given their approach to the financial services sector. A year ago, it could do no wrong. People were lining up to heap praise on Scottish banks, saying how amazing they were and how great their strategies were. Now, in many cases, the very same people are turning tail and criticising them, pretending that they knew all along that their strategies were terribly flawed. It is a bit rich that so many commentators are happy to take pot shots at businesses that are struggling and happy to take credit when they are doing well. That said, we now need to move on and deal with the situation that we face.

When FiSAB was set up, it was undoubtedly in the context of a financial services sector that was growing at a significant rate, faster than the rest of the economy. Nonetheless, at the time, the strategy documents that FiSAB released acknowledged some of the challenges that the financial sector faced. Key among them was the fact that the strength of having a large financial sector in Scotland could be a challenge in difficult circumstances. That is exactly the problem that the Scottish economy faces now. We have become very reliant on the financial services sector because it has done well, which is positive, but when there are difficulties in the sector we are more exposed to the downturn. We are also more reliant on headquarters for other services, including professional services.

The Labour amendment is entirely sensible. FiSAB was indeed set up with involvement from the trade unions, and it is entirely appropriate, particularly when we are considering the impact on jobs, for trade union involvement to be included. I am happy, on behalf of the Conservatives, to accept the Labour amendment.

Turning to our own amendment, we think that it is important to monitor what is happening in employment in the financial sector. There has perhaps been too little emphasis on the contribution of the financial sector in the past, but it is important that we are all aware of the contribution that it makes and of changes in employment throughout the sector as we go through the recession. It might take many years to reach the end of the difficulties for the financial sector, and it is important that all of us in the Parliament are aware not just of the number of jobs in the sector but of the many jobs that rely upon it indirectly.

We should perhaps reflect on FiSAB's ability to make a significant difference. We are dealing with a major financial situation that is leading to significant changes across the sector. The Government should do what it can to help, but let us not kid ourselves that FiSAB or anyone else can wave a magic wand to get rid of the challenges. The task of Government is surely to mitigate the impact and to do what it can.

I move amendment S3M-3384.1, to insert at end:

"and for such reports to include the latest estimate of the number of jobs in the financial sector in Scotland, direct and indirect."

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Plenary, 05 Feb 2009

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