McConnell focuses on Scottish economy
The First Minister has said that improving the productivity of the Scottish economy is the number one priority for devolved government.
He was speaking as he launched the revised Framework for Economic Development in Scotland (FEDS). This strategy outlines the basics for Scotland’s economic development. It was originally published in 2000, but nine months ago the Executive launched a review.
Speaking today, Mr McConnell said: “Creating a strong Scottish economy is the number one priority of our devolved government. Without sustained, long term growth, we cannot deliver the excellent public services that our communities need and deserve. Without a dynamic economy we cannot offer opportunities to our young people that will help them be the very best they can be.
“That is why FEDS is so important. It says loud and clear that we are serious about delivering economic growth. It says that we will act on infrastructure and skills, that we will tackle depopulation and encourage innovation. Most of all, though, it says that we are determined to make Scotland a more productive place – a country with productive companies, productive people and a productive public sector.”
He called for “all of Scotland” to work together to ensure economic growth and embrace change – both in the public and private sectors.
The growth strategy identifies five priority areas to increase productivity: improving basic education and skills, entrepreneurial skills, research and innovation, improving Scotland’s infrastructure and managing public resources more effectively.
However, there was bad news over the weekend for the First Minister when a survey from the IMD Swiss-based business school ranked Scotland’s economy as one of the worst of its size in the world. According to IMD, Scotland is ranked 36th out of 60 in the global table but 21st out of 30 when compared with countries of a similar size.
According to the IMD, Scotland is also underperforming compared to the rest of the UK as the UK overall was ranked 22nd overall.
Opposition parties have seized on the figures to call for a rethink of Scottish economic policy.
Previously, the Scottish Conservatives have called for all business rates to be cut to English levels, and the Scottish National Party say that independence would invigorate the economy as Scotland would then have full power over its economic policy.
Today’s revised plan was also greeted with caution by the unions. The general secretary of the Scottish Trade Union Congress, Bill Speirs, said that he was concerned that “we can see no evidence of promoting the value of ‘Fair Employment Practice’ in the document. The STUC strongly believes that valuing employees and treating them fairly is absolutely vital – trade unions are best placed to achieve this balance in the workplace.”
The unions’ second concern, regarding the pledge for public sector efficiency, is “the First Minister’s refusal, so far, to state if these efficiencies will be achieved through jobs cuts is worrying.”
Stronger worded criticism came from the Green Party who said it was dismayed that there was no action detailed for tackling climate change, renewable energy and public transport.
Mark Ballard said: “I can appreciate that the Executive wants to sound Green on the economy but on close inspection little has changed. The left hand still doesn’t appear to know what the right hand is doing – it just doesn’t add up. It is a case of more of everything – more climate wrecking roads and air travel, more pollution and more climate change. It is also bizarre that the Executive heralds its focus on growing the economy, yet also pursues policies which will drag down the economy in the long term.”
