Chamber
Meeting of the Parliament 10 May 2012
10 May 2012 · S4 · Meeting of the Parliament
Item of business
Government Growth Strategy
A little under 18 months ago, on 24 January 2011, an article appeared on the BBC news website stating:
“Aberdeen is the British city best-placed to grow out of the economic downturn”.
That was according to the think tank Centre for Cities and its “Cities Outlook 2011” index, which
“found that Aberdeen had the best growth prospects”.
Just two months ago, The Herald published the encouraging news that
“Santander is looking to further expand its presence in Scotland and is targeting growth in Aberdeen.”
According to that report, Kevin Boyd, divisional director at the bank
“was keen to boost the bank’s presence in the north-east during 2012”
and had said:
“There is a great opportunity in Aberdeen as there is still a boom there. We have been providing support from the central belt up until now but it is difficult to get into deals when we are not up there all the time ... So as well as a little bit of organic growth in the support staff for the central belt Aberdeen will be the next beachhead for us.”
That is welcome news for the north-east.
Moreover, on 26 March, a Press and Journal article said:
“Aberdeen was the only major city in the UK to grow its economy during the recession, according to a report published today.
The Granite City outperformed both London and Edinburgh, the heartlands of the country’s financial sector, thanks to the continued strength of the oil and gas industry.”
Supportive comment has come from Tom Smith, the chairman of Aberdeen city and shire economic future, who said:
“It is vital that both the Scottish and UK governments understand our economic significance and support us in building on this position of strength by developing the right infrastructure that will ensure we continue to attract, retain and develop the necessary skills, businesses and investment to secure our long-term future.”
Members will hear more from him later in my speech.
Those quotations demonstrate that Aberdeen has a fundamental role to play as a powerhouse of the economy not just of Scotland but of the UK, for as long as we remain part of the wider UK economy. There are a number of other local successes across the north-east. The Rowett institute of nutrition and health has been given £10 million of funding for health-related research. Dundee has been named a hub for the rapidly developing renewables sector. Investment of £20 million is being made in life sciences companies, including investment to help Antoxis in Aberdeen with its research in the fight against Alzheimer’s.
There are high-quality food and drink products across the Aberdeen area, including those from Brewdog, the independent brewer in Fraserburgh, which makes 80 per cent of its turnover from overseas sales, as was highlighted to us at the Finance Committee just yesterday morning. Deeside and the Cairngorms are one of Scotland’s six key tourism locations and will develop a destination plan to help to attract people to the area. The Banffshire Coast Tourism Partnership will also look to attract people to the area. The north-east has a lot going for it and we should celebrate the fundamental role that it is playing in boosting the economy.
However, a note of caution is being sounded. Today’s editorial in The Press and Journal says:
“After decades of inertia, Aberdeen looked on the verge of a new chapter of potential development and progress”
with
“Plans for the Aberdeen Western Peripheral Route ... an enhanced garden for the city centre”
and
“a new crossing over the River Don”.
It continues, however:
”Today, that potential progress has come grinding to a halt ... Scottish Labour leader Johann Lamont calls us a powerhouse of the Scottish economy, but her party seems unwilling to push it forward ... The transformational City Garden Project would have helped put a heartbeat into an under-utilised and disconnected city centre.
But despite far more people voting in favour of it than voted in favour of the new administration’s parties, its very future now looks in doubt ... It is to be hoped that it can be salvaged and other key developments pushed forward by this new administration. Otherwise, the city and its people will not be known as Ms Lamont’s ‘economic powerhouse’ but an area that continues to enjoy the trappings of individual wealth, but has very little to show for it.”
Tom Smith, to whom I referred earlier, has said:
“we do have concerns that Labour are opposed to some of the projects and initiatives ACSEF supports to drive growth in the economy and create jobs ... it is hard to believe that a political party are prepared to go against a project which secured a majority vote in a referendum. This brings both integrity and democracy into question.
The third Don crossing is part of the region’s transport strategy to deliver an integrated transport network that will reduce congestion and improve the use of public transport. It is also closely linked to any developments at the Haudagain.
It will be interesting to hear the new administration’s alternatives to these projects which are integral to the economic development of our city.”
There is a lot to be positive about in Aberdeen at present, but we cannot afford inertia in the north-east, given what we have heard about driving the economy forward. I implore the new administration in Aberdeen to think long and hard about the potentially serious and damaging consequences of cancelling some of the infrastructure projects that are vital to the future economic growth of the north-east and of the Scottish nation as a whole.
Mr Macintosh talked about the small business bonus scheme. When the Federation of Small Businesses says that that has been a lifeline, it means that if it was not in place, small businesses would have gone out of business. That would have meant less economic activity and more people unemployed. Mr Macintosh might wish to cast aspersions on the scheme, which has benefited 85,000 businesses across Scotland, but I suggest that what the FSB says demonstrates clearly that if the scheme was not in place, the small business landscape in Scotland would be in a very different place, which I would not want us to visit. I caution him seriously about considering any proposals to tinker with or undermine the small business bonus.
15:59
“Aberdeen is the British city best-placed to grow out of the economic downturn”.
That was according to the think tank Centre for Cities and its “Cities Outlook 2011” index, which
“found that Aberdeen had the best growth prospects”.
Just two months ago, The Herald published the encouraging news that
“Santander is looking to further expand its presence in Scotland and is targeting growth in Aberdeen.”
According to that report, Kevin Boyd, divisional director at the bank
“was keen to boost the bank’s presence in the north-east during 2012”
and had said:
“There is a great opportunity in Aberdeen as there is still a boom there. We have been providing support from the central belt up until now but it is difficult to get into deals when we are not up there all the time ... So as well as a little bit of organic growth in the support staff for the central belt Aberdeen will be the next beachhead for us.”
That is welcome news for the north-east.
Moreover, on 26 March, a Press and Journal article said:
“Aberdeen was the only major city in the UK to grow its economy during the recession, according to a report published today.
The Granite City outperformed both London and Edinburgh, the heartlands of the country’s financial sector, thanks to the continued strength of the oil and gas industry.”
Supportive comment has come from Tom Smith, the chairman of Aberdeen city and shire economic future, who said:
“It is vital that both the Scottish and UK governments understand our economic significance and support us in building on this position of strength by developing the right infrastructure that will ensure we continue to attract, retain and develop the necessary skills, businesses and investment to secure our long-term future.”
Members will hear more from him later in my speech.
Those quotations demonstrate that Aberdeen has a fundamental role to play as a powerhouse of the economy not just of Scotland but of the UK, for as long as we remain part of the wider UK economy. There are a number of other local successes across the north-east. The Rowett institute of nutrition and health has been given £10 million of funding for health-related research. Dundee has been named a hub for the rapidly developing renewables sector. Investment of £20 million is being made in life sciences companies, including investment to help Antoxis in Aberdeen with its research in the fight against Alzheimer’s.
There are high-quality food and drink products across the Aberdeen area, including those from Brewdog, the independent brewer in Fraserburgh, which makes 80 per cent of its turnover from overseas sales, as was highlighted to us at the Finance Committee just yesterday morning. Deeside and the Cairngorms are one of Scotland’s six key tourism locations and will develop a destination plan to help to attract people to the area. The Banffshire Coast Tourism Partnership will also look to attract people to the area. The north-east has a lot going for it and we should celebrate the fundamental role that it is playing in boosting the economy.
However, a note of caution is being sounded. Today’s editorial in The Press and Journal says:
“After decades of inertia, Aberdeen looked on the verge of a new chapter of potential development and progress”
with
“Plans for the Aberdeen Western Peripheral Route ... an enhanced garden for the city centre”
and
“a new crossing over the River Don”.
It continues, however:
”Today, that potential progress has come grinding to a halt ... Scottish Labour leader Johann Lamont calls us a powerhouse of the Scottish economy, but her party seems unwilling to push it forward ... The transformational City Garden Project would have helped put a heartbeat into an under-utilised and disconnected city centre.
But despite far more people voting in favour of it than voted in favour of the new administration’s parties, its very future now looks in doubt ... It is to be hoped that it can be salvaged and other key developments pushed forward by this new administration. Otherwise, the city and its people will not be known as Ms Lamont’s ‘economic powerhouse’ but an area that continues to enjoy the trappings of individual wealth, but has very little to show for it.”
Tom Smith, to whom I referred earlier, has said:
“we do have concerns that Labour are opposed to some of the projects and initiatives ACSEF supports to drive growth in the economy and create jobs ... it is hard to believe that a political party are prepared to go against a project which secured a majority vote in a referendum. This brings both integrity and democracy into question.
The third Don crossing is part of the region’s transport strategy to deliver an integrated transport network that will reduce congestion and improve the use of public transport. It is also closely linked to any developments at the Haudagain.
It will be interesting to hear the new administration’s alternatives to these projects which are integral to the economic development of our city.”
There is a lot to be positive about in Aberdeen at present, but we cannot afford inertia in the north-east, given what we have heard about driving the economy forward. I implore the new administration in Aberdeen to think long and hard about the potentially serious and damaging consequences of cancelling some of the infrastructure projects that are vital to the future economic growth of the north-east and of the Scottish nation as a whole.
Mr Macintosh talked about the small business bonus scheme. When the Federation of Small Businesses says that that has been a lifeline, it means that if it was not in place, small businesses would have gone out of business. That would have meant less economic activity and more people unemployed. Mr Macintosh might wish to cast aspersions on the scheme, which has benefited 85,000 businesses across Scotland, but I suggest that what the FSB says demonstrates clearly that if the scheme was not in place, the small business landscape in Scotland would be in a very different place, which I would not want us to visit. I caution him seriously about considering any proposals to tinker with or undermine the small business bonus.
15:59
In the same item of business
The Presiding Officer (Tricia Marwick)
NPA
The next item of business is a debate on motion S4M-02808, in the name of John Swinney, on the Scottish Government’s growth strategy.14:56
The Cabinet Secretary for Finance, Employment and Sustainable Growth (John Swinney)
SNP
I am grateful for the opportunity to open the debate on our actions to support growth in the Scottish economy. My remarks will centre on the support that we ...
Claudia Beamish (South Scotland) (Lab)
Lab
How will local communities be involved in those exciting new offshore wind initiatives, particularly with regard to transferable skills?
John Swinney
SNP
With that question, Claudia Beamish opens up a substantial part of the debate. An essential product of our focus on renewables will be the significant increa...
Ken Macintosh (Eastwood) (Lab)
Lab
Presiding Officer, I hope that you will not mind if I begin by celebrating a marvellous election result this week. I do not mean the local election results, ...
Kevin Stewart (Aberdeen Central) (SNP)
SNP
“Delusional” is a good word to describe the Labour Party on this issue. The five-point plan for growth that it published in November contains only one area o...
Ken Macintosh
Lab
What a fantastic contribution from Mr Stewart. He has the good fortune of hearing me open and close in today’s debate and I will certainly return to some of ...
John Swinney
SNP
Mr Macintosh opens up some fascinating territory. In his last two sentences, he said that he wants to relieve highly profitable supermarkets of a contributio...
Ken Macintosh
Lab
Mr Swinney does not seem to have been listening very closely. I was illuminating the difference between his far-fetched claims and assertions, and the eviden...
Mark McDonald (North East Scotland) (SNP)
SNP
Mr Macintosh surely cannot have missed the successive comments from the Federation of Small Businesses, which has highlighted the importance of the small bus...
Ken Macintosh
Lab
Again, Mr McDonald is not listening to what I am saying. The Scottish Government constantly claims that it puts employment and the pursuit of growth at the t...
The Minister for Energy, Enterprise and Tourism (Fergus Ewing)
SNP
Does Mr Macintosh favour scrapping the small business bonus scheme?
Ken Macintosh
Lab
I certainly do not favour scrapping it.Members: Oh!
Ken Macintosh
Lab
I do not see why the SNP should feign surprise at that. Why would one wish to take so much money out of a key part of our economy? I am asking what we are ge...
The Deputy Presiding Officer (John Scott)
Con
I regret to say that I must ask you to close.
Ken Macintosh
Lab
Despite all those interventions, Presiding Officer?
The Deputy Presiding Officer
Con
You can have another 30 seconds.
Ken Macintosh
Lab
Very well.I am not trying to blame the downturn on the Scottish Government, but I expect ministers to take responsibility for their decisions. Need I remind ...
Gavin Brown (Lothian) (Con)
Con
There has been much talk in the chamber today, at First Minister’s question time and earlier in this debate, about the elections last week in Scotland and in...
John Mason (Glasgow Shettleston) (SNP)
SNP
Where would the money that the member wants to put into colleges and housing come from?
Gavin Brown
Con
For the best part of a decade, we have been up front about the fact that we would, for example, take Scottish Water out of public ownership, which would save...
John Swinney
SNP
Following Mr Mason’s intervention, Gavin Brown has argued for capital funding for housing, and I can see his argument, but college funding is resource fundin...
Gavin Brown
Con
In our manifesto last year, we said that we would change the criteria for concessionary travel, which we felt would save about £40 million a year. We never p...
The Deputy Presiding Officer
Con
We now come to the open debate.15:28
Annabelle Ewing (Mid Scotland and Fife) (SNP)
SNP
I am pleased to have been called to speak in this important debate. As we have heard, the SNP Scottish Government is absolutely committed to driving forward ...
Annabelle Ewing
SNP
I have absolutely no idea how Mr Macintosh can take a contrary view, but I see that he wants to attempt to explain his confused position.
Ken Macintosh
Lab
Does Mrs Ewing believe that the policy has increased growth or improved employment?
Annabelle Ewing
SNP
I thank Mr Macintosh for his intervention, but I do not think that it helps to make his position clear. What I have said and what is very clear to small busi...
Gavin Brown
Con
The member just quoted a figure from the Scotch Whisky Association and referred to the whisky industry’s great export results. What is her analysis of the SW...
Annabelle Ewing
SNP
I thought that the member now supported minimum unit pricing, but perhaps he is taking a different position from the rest of his group. In the years to come,...